"I guess it should be obvious that we're watching an unfolding bloodbath here (even Goldman lost almost 20% in 6 months). But then again, when JPMorgan CEO Jamie Dimon said recently that banks are so flush with cash they're going to issue nice and juicy dividends, I think he meant, and believed in, what he said. It's just that they're flush with your cash, not their own.
But there's nothing, nothing at all, on the economic horizon that carries even the least bit of hope that these banks will be able to make good on their lost stock values. No jobs increases, no increases in home sales, none of that. They'll just be gutter dwellers, if they stay alive at all, though, granted, your money may provide for plush gutters."
"If Greece -or, heaven forbid, Italy or Spain- were to default, and let's make that a "when, not if" for Greece, Société Générale et al will be desperately gasping for air because of their bond losses, the EU and ECB won't be able to come to all the rescues, the only way for these banks to come out alive will be their legitimate claims on CDS written on Wall Street once a credit event has been declared, and the US Treasury and/or Federal Reserve will once again be called upon to save the Mediterranean day at the cost of Joe and Jane Main Street, My Town, USA."
http://theautomaticearth.blogspot.com/2011/08/august-3-2011-next-bank-bailout.html
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