Financial, Real Estate, Stock Markets Trends and Current Affairs

On Tuesday, 12 April 2011 I wrote "Weakening Revenue Streams in US Banks Will Make Them More Susceptible To Contingent Risks".  Today, CNBC runs this on thier front page today... Big Banks Forced to Cut Back Again as Economy Weakens: Battered by a weak economy, the nation’s biggest banks are cutting jobs, consolidating businesses and scrambling for new sources of income.

I believed this to be inevitable for we are still nowhere near a true economic recovery. The main source of lending for most US banks, the housing industry, is in a veritable depression. See Reggie Middleton's Real Estate Recap: As I Have Clearly Illustrated, It's a Real Estate Depression!!! and The Residential Real Estate Week in Review, or I Told You We're In A Real Estate Depression. Even the news today points to more of the same... Pending Home Sales Fall 1.3 Percent in July from June. 

Big companies are firiing freely again while the main engine of US employment, the small business, exhibits a slowing in hiring in August as wages dip. The balance sheet draw is evident as some banks dump assets at firesale prices.... years after the alleged fire has been put out, while other banks simply refuse to come clearn with the truth... Dexia Sets A $5.1bn Provision For Loss On Trying To Sell The Same Residential Real Estate Assets Upon Which JP Morgan Has Slashed Provisions 83% to $1.2bn from $7.0bn 

Needless to say, it is nigh time to start to take another look at the big US banks.