Stress Test on Banks were tested at a 10% worst case....
Listen to her in the second half hour on CNBC.
The Markets ran with her BUY GS Headline.
Then later on she say's Un-Employmnet will get to 13% - 14%.
Consumers will spend much less.....
Banks will need more Capital!
Only "Goldman Sachs is a BUY for the Bear Market"... that was her call.
She does not translate into all other Financials... Why are the Markets!
Her Call was miss-understood!
She hedged on the 13-14% but looks like she belives it will be that or higher. She also said she liked GS since they own everything.
Also likes BAC since they have a ton of stuff to spin off and sell.
She said all the rest are in the crapper because of CC and bad paper.
She looked reluctant to say just how she REALLY felt but just GS is gonna be the ultimate winner and be over 200 in next 12 months. If you know the GS crowd they will be over 200 well before then.
She didn't look or say anything bullish on the economy-housing- employment. Just the opposite. She is looking at the general economic situation here in the US will suck for the next 12-24 months.
She was just keeping to this Qrtr for the financials.
She gave no positive news for the next few qtrs except for GS.
Also said the STRESS TEST was a bunch of crappiss.
It really seemed like CNBC brought her out just to kill any shorts left out there.
While she was talking at about 8:45am Bloomberg was talking about how the shorts and bearish interest was at its highest point in the last few months..
Yes and if you listened closely you would have caught a number of conflicting statements. Also the reasons given for their "earnings" has more to do with rule changing and adjusting the books to the new rules. IMO people should be scared of this nut and shell game being they are playing in order to buy time.
"Shell Games" and "adjusting the books".I did get that impression when I heard that.It is all financial trickery.You hit the nail right on the head.I have a feeling this rally will be short lived.
Modifying mortgages to make past dues current, thus writing up their assets. This doesn't mean that their actual earnings have improved. This is just another part of the shell game.
I must have missed the part where she said that we have a healthy banking system.
I have no idea why the broader market is rallying right now, her call on Goldman had nothing to do with others, or was in any way a long-term positive outlook for the economy as a whole.
The unemployment discussion was the most interesting part of the discussion.
She very clearly stated "what is happening with the banks does not translate to the consumer", which I took as "all that time and taxpayer was only for the benefit of the banks and consumers are about to get pinched even harder."
...which is a more reliable number during depressions\recessions.
I pray the Obama admin is listening to her, she's been on the money so far and every now and then has some real good things to say.