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I understand, but:

- there is no basis for these "powerful" earnings.
- The industry is coming out of a bubble, so earnings momentum is going down, not up.
- The industry will be (and is) significantly more regulated.
- They STILL have nearly all of the problems that originally cause them to start dropping like flies, except for liquidity - since they were backstopped by the Fed and treasury.
- There is significant slack in demand, which I don't see tightening any time soon.
- Interest rates are currently at ZERO, the only direction they have to go is up and even with ZIRP, banks such as JPM still have dwindling NIM (net interest margins). What happens when the Fed decides to (or is forced to by the spectre of inflation) to raise rates and collapse bank margins/increase funding costs even more?

I do believe in analyzing the opposing argument to justify my own, but the argument has to hold water to be credible.