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Short-term Relief for Banks, But More Bad News to Come, Rosner Says

Posted Jun 03, 2009 02:10pm EDT by Tech Ticker in Investing, Recession, Banking

With American banks rushing to raise capital, the worst is over for the financial sector, right? Not so fast, says our guest Josh Rosner of Graham Fisher & Co.

Indeed raising cash is good news and second quarter results are likely to be positive, Rosner told us at The Big Picture Conference--Capitalism After Crisis & Recession in New York.

But longer term, the "sugar high" from stimulus packages and bailouts will run out, he says. Troubled assets remain on bank balance sheets. Weakness in housing is just the beginning of a "rolling crisis" that will spread to credit cards and commercial loans. Plus, unemployment is rising. Rosner expects this "re-destabilization" later this year into early 2010.

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126 Comments

Whit Chambers
Whit Chambers - Wednesday June 03, 2009 02:22PM EDT

More Bad news... No kidding. good luck everyone the curtain is falling down.

- Wednesday June 03, 2009 02:25PM EDT

Stop these paid bashers .

- Wednesday June 03, 2009 02:26PM EDT

Stop These paid bashers. Hedgefunds media .

Ryan
Ryan - Wednesday June 03, 2009 02:30PM EDT

I think we are in for a little bit of a correction. People still are not spending money, and unfortunately we have gutted the manufacturing, mining, and agriculture sectors of our economy. So we are heavily service based. So if people don't consume, the economy shrinks. Of course we have Obama spending money left and right, so we got that working for us . . . . which is nice.

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 02:34PM EDT

Let me play with other people's money and I'll show you all the "hope" and "change" you can handle. With my money it's another story.

danny
danny - Wednesday June 03, 2009 02:36PM EDT

Ryan M- good job slipping in the Caddyshack reference. BUY, BUY, BUY. Everyone is buyng? Sell, Sell, Sell. HAHAHAHAHAH

gale
gale - Wednesday June 03, 2009 02:52PM EDT

blame the bush era not obama! bush and cheney did this mess. and are laughing about it! we are going through arough time now but it will get better americans have to be patient and live within their means not the banks!

yattaboy
yattaboy - Wednesday June 03, 2009 02:53PM EDT

Is it too late to take the blue bill??

Gary
Gary - Wednesday June 03, 2009 02:54PM EDT

TO ALL THE BANKS OUT THERE, "BLOW ME" PAPER ASSES AT WORK!!

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 03:00PM EDT

The Real "Bad News" Is That........." BANK OF AMERICA" IS BANKRUPT".....BANKRUPT..!!!!! Amen.

yattaboy
yattaboy - Wednesday June 03, 2009 03:02PM EDT

Banks refusing TARP due to increased oversight is like a cancer patient refusing chemo due to its side effects. None of us like bailouts, but banks need more than 1 dollar in deposits for every 15 lent out.

Gary
Gary - Wednesday June 03, 2009 03:05PM EDT

EVERTHINGS GREAT!!! FANTASTIC---Just a few wrinkles--numbers r great!!!......everything is so wonderful!!!! GET OUT THE VASELINE THE BIG GOV. AND BIG BANKS R ABOUT TO BONE U WHERE IT'S BROWN---Just listen 2 these clowns spend your doe---Uand I will pay for it as well as our children.

Notting
Notting - Wednesday June 03, 2009 03:06PM EDT

PPIP isn't going to happen? This is actually great news if true. PPIP is just another way give enormous sums of money to the big banks at the expense of the middle class.

ken n
ken n - Wednesday June 03, 2009 03:09PM EDT

The sun is coming out tomorrow.

- Wednesday June 03, 2009 03:15PM EDT

Many fuc*king guys predicted DOW to 5000. I believe many people were fooled.

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 03:16PM EDT

Hussein (Obama's real middle name) and Tax Cheat Timmy is running out of Kool Aid made from blood sucked out of Americans. My 2-cents is that it's just another sucker bear rally (check out charts from 1932 to 38) and W not V "Great Recession" with next down leg to be worse that initial slow down. Watch for $ dropping and interest rate rise literally killing the rebound thanks to printing more USD.

p g
p g - Wednesday June 03, 2009 03:19PM EDT

Can't spend what you don't have, just look at California. Cut spending by cutting overspending. Balance by 10% until you balance the books, It's a no brainer!! But then again, politicians aren't paid to think, only sell what is hard to swallow!!

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 03:21PM EDT

"but it's an eerie coincidence that Revelations mentions the Giant from the East plays a pivotal role in Armageddon." --------------------------------------------------- The United States is someone else's 'east'.

Yahoo! Finance User
Yahoo! Finance User - Wednesday June 03, 2009 03:24PM EDT

Bush vs. Obama is a distraction and Obama winning is likely someone's bet like in Trading Places. The ONLY thing that will save us is to get rid of the Federal Reserve and lobbyists. Else we are all screwed. Do not do business with any of the big Fed banks - GS, JPM, BAC etc. Schwab is good and your local banks probably. Get rid of your Citi cards and quit doing business with all the bassturds that caused this mess.

vern dog
vern dog - Wednesday June 03, 2009 03:26PM EDT

Geithner and Bernanke think bailing out the banks will solve this mess.All they are doing is saving their friends.They have to dissolve all the derivatives to clear the balance sheets. Then no tarp is required.The financial industry paid over 400 mil in lobbying to barney frank and friends in 10 yrs. to get their way.What a worthless crew in gov.I would rather deal with the Sopranos....

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