1. Foreclosures increasing 2. FASB changing the way banks account for off-balance sheet endeavors which will require major banks to add back $1 trillion of risky loans. 3. Option arm mortgages set to explode on defaults going from $1 billion/month foreclosure rate to $8 billion/month in late 2011. http://finance.yahoo.com/tech-ticker/article/252125/Here-Comes-the-Option-ARM-Mortgage-Explosion?tickers=xlf,spy,dia,wfc?sec=topStories&pos=9&asset=&ccode= 4. Earnings on credit cards are about to be hit with new federal legislation on behalf on consumers 5. unemployment numbers continue to be disasterous with todays worse than expected weekly new claims for unemplyment. If you lose your job, you can't pay the banks what you owe them. 6. Commercial real estate spiralling down. 7. Anyone care to add to the list????? There's plenty more.
Can anyone name even one area to drive bank earnings higher? Aside from the PPT and other artificial tools such as FNM and FRE generating bank loan origination fees by subsidizing and attempting to revive the drowned real estate market on the taxpayer's dime.