The “Real” Economy Is Dying: Q4 “Going to Be a Bloodbath”

[Arraya]

http://finance.yahoo.com/tech-ticker/article/348944/The-%22Real%22-Economy-Is-Dying-Q4-%22Going-to-Be-a-Bloodbath%22-Whalen-Says?tickers=XLF,SKF,FAS,FAZ,MS,GS,HCBK

Cut and paste from link:

The banking sector’s assets shrunk by about $300 billion per quarter in the first half of 2009, a sign of banks hoarding cash in anticipation of additional future losses, according to Whalen. “The real economy is shrinking because of a lack of credit.”

The shrinkage will continue into 2010, Whalen predicts, suggesting the banking sector hasn’t yet seen the peak in loan losses. Institutional Risk Analytics forecasts the FDIC will ultimately need $300 billion to $400 billion to recoup losses to its bank insurance fund. (In other words, the $45 billion the FDIC sought to raise last week by asking banks to prepay fees is just a drop in the bucket.)

“Investors should think about this because the fourth quarter in the banking industry is going to be a bloodbath,” says Whalen, who believes smaller and regional banks like Hudson City Bancorp may come into favor vs. larger peers, which have dramatically outperformed since the March lows.

[Arraya]

Propping up housing prices is expensive. The banks are going to need another infusion of cash.

[Arraya]

Propping up housing prices is expensive. The banks are going to need another infusion of cash.

[Arraya]

Propping up housing prices is expensive. The banks are going to need another infusion of cash.

[Arraya]

Propping up housing prices is expensive. The banks are going to need another infusion of cash.

[Arraya]

Propping up housing prices is expensive. The banks are going to need another infusion of cash.

[dbapig]

This morning I was at a starbucks picking up my coffee. I know I know, I’ve cut back but today I felt like it. While there, I saw these sales type people assembling for a meeting at the starbucks.

Anyhow, one of them was a lady who mentioned to another that someone she knew was giving up on 10 (?) properties and walking away. That guy was going to work as an employee at an engineering firm after walking away from a dozen or so residential/commercial properties. Start Fresh. She said he had no kids but a really good wife.

I didn’t know whether to feel mad or bad for the guy.

[dbapig]

This morning I was at a starbucks picking up my coffee. I know I know, I’ve cut back but today I felt like it. While there, I saw these sales type people assembling for a meeting at the starbucks.

Anyhow, one of them was a lady who mentioned to another that someone she knew was giving up on 10 (?) properties and walking away. That guy was going to work as an employee at an engineering firm after walking away from a dozen or so residential/commercial properties. Start Fresh. She said he had no kids but a really good wife.

I didn’t know whether to feel mad or bad for the guy.

[dbapig]

This morning I was at a starbucks picking up my coffee. I know I know, I’ve cut back but today I felt like it. While there, I saw these sales type people assembling for a meeting at the starbucks.

Anyhow, one of them was a lady who mentioned to another that someone she knew was giving up on 10 (?) properties and walking away. That guy was going to work as an employee at an engineering firm after walking away from a dozen or so residential/commercial properties. Start Fresh. She said he had no kids but a really good wife.

I didn’t know whether to feel mad or bad for the guy.

[dbapig]

This morning I was at a starbucks picking up my coffee. I know I know, I’ve cut back but today I felt like it. While there, I saw these sales type people assembling for a meeting at the starbucks.

Anyhow, one of them was a lady who mentioned to another that someone she knew was giving up on 10 (?) properties and walking away. That guy was going to work as an employee at an engineering firm after walking away from a dozen or so residential/commercial properties. Start Fresh. She said he had no kids but a really good wife.

I didn’t know whether to feel mad or bad for the guy.

[dbapig]

This morning I was at a starbucks picking up my coffee. I know I know, I’ve cut back but today I felt like it. While there, I saw these sales type people assembling for a meeting at the starbucks.

Anyhow, one of them was a lady who mentioned to another that someone she knew was giving up on 10 (?) properties and walking away. That guy was going to work as an employee at an engineering firm after walking away from a dozen or so residential/commercial properties. Start Fresh. She said he had no kids but a really good wife.

I didn’t know whether to feel mad or bad for the guy.

[Chris Scoreboard Johnston]

I heard him on a radio talk show a couple of weeks ago, and he was also mentioning that of the 8500 or so banks that are out there, 2500 are insolvent right now. He is not someone with a political agenda he is just an analyst. I hope he is wrong about that, but what a number. He also said about 2000 are in very good shape, and the rest somewhere in between these two conditions.

He did predict very difficult times ahead due to this and mentioned this was more than what the government can handle in his opinion. It might be in the archives of Mo Ansari’s Market Wrap on 1000 AM. I think I have those numbers right, but I might be off slightly with them.

I think if you go to Compak which is Ansari’s managment company he said his shows are archived there for listening.

[Chris Scoreboard Johnston]

I heard him on a radio talk show a couple of weeks ago, and he was also mentioning that of the 8500 or so banks that are out there, 2500 are insolvent right now. He is not someone with a political agenda he is just an analyst. I hope he is wrong about that, but what a number. He also said about 2000 are in very good shape, and the rest somewhere in between these two conditions.

He did predict very difficult times ahead due to this and mentioned this was more than what the government can handle in his opinion. It might be in the archives of Mo Ansari’s Market Wrap on 1000 AM. I think I have those numbers right, but I might be off slightly with them.

I think if you go to Compak which is Ansari’s managment company he said his shows are archived there for listening.

[Chris Scoreboard Johnston]

I heard him on a radio talk show a couple of weeks ago, and he was also mentioning that of the 8500 or so banks that are out there, 2500 are insolvent right now. He is not someone with a political agenda he is just an analyst. I hope he is wrong about that, but what a number. He also said about 2000 are in very good shape, and the rest somewhere in between these two conditions.

He did predict very difficult times ahead due to this and mentioned this was more than what the government can handle in his opinion. It might be in the archives of Mo Ansari’s Market Wrap on 1000 AM. I think I have those numbers right, but I might be off slightly with them.

I think if you go to Compak which is Ansari’s managment company he said his shows are archived there for listening.

[Chris Scoreboard Johnston]

I heard him on a radio talk show a couple of weeks ago, and he was also mentioning that of the 8500 or so banks that are out there, 2500 are insolvent right now. He is not someone with a political agenda he is just an analyst. I hope he is wrong about that, but what a number. He also said about 2000 are in very good shape, and the rest somewhere in between these two conditions.

He did predict very difficult times ahead due to this and mentioned this was more than what the government can handle in his opinion. It might be in the archives of Mo Ansari’s Market Wrap on 1000 AM. I think I have those numbers right, but I might be off slightly with them.

I think if you go to Compak which is Ansari’s managment company he said his shows are archived there for listening.

[Author]

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