Interesting comments, here are some more. There is just way too much labor capacity in The US and the world. And the supply is increasing. And the demand for that labor continues to shrink. So there is a huge problem, labor costs should be going down year over year, but in the US and Europe, there is an inefficient market built by amalgamation of unions and government subsidized labor. The only way this labor subsidy has been sustained is thru taxation and borrowing....voila, we can no longer tax and borrow to support the inefficient model. Did you know that after the Black Death in Europe, when 1/3 of the population died, labor became a scarce commodity. More people became land owners and standards of living rose. We are in the exact opposite environment...there are too many people on the planet, too litle demand for their services, and globally, standards of living have been built on credit and currency deflation. It is all going to end...i just hope some little guy with a moustache and brown shirt does not emerge somewhere.
Adding to your thought - - Why should the CEO of GE be the US JOB CZAR and relocate thousands of JOBS Overseas at the same time that GE PAYS NO TAXES - - Loopholes??? I GUESS!!!!! POLITICS, CRONEYISM & GREED.
Completely wrong - the govenment must increase spending in a major way. This agreement that we must pull back on government spending will put this country into the worst depression ever seen. This is exactly the course took in the great depression of the thirties. This is the time to make major investments in our economy.
Actually, banks can make money right now by making loans, they just dont want to. Lenders are quick to say "there is no loan demand." There is infinite loan demand. The borrowers, though, cannot meet the demands placed upon them by lenders, who want higher spreads, more equity, and tighter underwriting. And as we were dumb enough to let the government give the banks free cash, they have no incentive to deal as long as they have a war chest of capital reserves and can reinvest it in treasuries.
Everything needs to take a step back before we can move forward. This means banks have to swallow their own medicine, make loans they wold rather not make, some of them will fail, and share prices will fall in general. Best managed banks will survive and their prices will rebound. Dont know when that will happen though or if BB&T will be a winner or loser.