The economy looks like a piece of crap! Workers are losing jobs at an alarming rate. And yet every time stocks go up 2 points we are told by the financial media that the recession is showing signs of improvement….and for a couple of years I have been saying that it is just NOT so…….and that a double dip is coming, at least in my analysis…..
Thanx to Michael Snyder of BLN.com for doing the research for me (Not solely for me but I thank him)…….there are signs that say that the worse is yet to come…….
The following are 18 signs that global financial markets smell blood in the water….
#1 Banks stocks are absolutely getting hammered right now. Bank of America hit a 52 week low on Monday. Bank of America shares declined 4 percent to $9.61.
#2 So far this year, Bank of America stock is down about 27 percent.
#3 Bloomberg is reporting that Bank of America may be forced to increase its capital cushion by 50 billion dollars.
#4 Shares of Goldman Sachs and Morgan Stanley are near two year lows.
#5 Shares in Citigroup fell 2.5 percent on Monday.
#6 Moody’s recently warned that it may be forced to downgrade the debt ratings of Bank of America, Citigroup and Wells Fargo.
#7 Barclays Capital, Goldman Sachs, Bank of America, JPMorgan Chase and Morgan Stanley are all either considering staff cuts or are already laying workers off.
#8 The deputy European director of the International Monetary Fund says that the Greek debt crisis is “on a knife’s edge“.
#9 Moody’s has slashed Ireland’s bond rating all the way to junk status.
#10 The yield on 2 year Portuguese bonds is now over 20 percent, the yield on 2 year Irish bonds is now over 23 percent and the yield on 2 year Greek bonds is now over 35 percent.
#11 Shares of Italy’s largest bank dropped by a whopping 6.4% on Monday.
#12 On Monday, the yield on 10 year Italian bonds was the highest it has been since the euro was adopted.
#13 On Monday, the yield on 10 year Spanish bonds was also the highest it has been since the euro was adopted.
#14 Shares of Germany’s largest bank fell by a staggering 7% on Monday and are down a total of 22% so far this month.
#15 Citigroup’s chief economist, William Buiter, says that without direct intervention by the ECB there is going to be a wave of sovereign defaultsacross Europe….
“Nothing stands in the way of multiple sovereign defaults except the ECB: they are the only game in town, there is nothing else”
#16 Cisco has announced plans to axe 16 percent of its workers.
#17 Borders Group has announced that it will be liquidating all remaining assets. That means that 399 stores will be closed and 10,700 workers will lose their jobs.
#18 During times of great crisis, many investors seek safe havens for their money. On Monday, the price of gold shot past $1600 an ounce.
The indicators are staring us in the face……will anyone blink first…….who will be on the hook this time? None of the indicators are as good as the media wants you to believe they are……the world is about to get a cold slap in the face…they know it! Now you know it!
BOA and Goldman-Sucks should be doing poorly. They were major players in the economic collapse and BOA still suffers from its inability to properly process mortgages, kicking many people out in the street who actually were making payments on their homes.
I know they are major players in the big scheme of things but how are smaller banks and credit unions doing? Perhaps they are making up for some of the slack created by these two financial giants.
Most of the smaller banks are also sitting on their cash…there is very little money for start up or for small businesses…..
I think LB’s point is a good one. However, it might also be useful to look at why these financial instututions (particularly those with major interests in Europe) are suddenly doing worse when their position was improving – it (IMO) is almost entirely due to the fact that the German Chancellor has taken a similary tough (but probably even more so) stance to that of the UK and said publicly that SHE doesn’t think the taxpayer should pick up the tab anymore at all, but that the brown stuff should land squarely where it belongs – on the doorsteps of the banks and financial institutions who caused the goddamned problem in the first place and THEY should make the necessary provisions and start right now!!!
Good for HER!
Quin…Amen! But we know that will not happen….sadly
It WILL happen in Europe! Not in the uS of course but then the bankers own the politicians there! Not so here – they control a lot, but they don’t own our governments – certainly not the big ones!
Oh that would be divine…..a government not in the bakers pockets……(heavy sigh)……