How bad are the Citi and Merrill “earnings” reports going to be this week?
How many bankers are going to be unemployed by the end of the week because of it?
Will it change what Uncle Bennie and the Fed’s do?
I’ll give you my thoughts on those matters tomorrow…..
Last 3 posts by phillenbrand
- Loan Modification Fix - July 20th, 2009
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CNBC analysts are predicting anyhere from 7000 to 15,000 just in this round of Citi layoffs, with more to come through the year. No prediction as to the total number.
Is our economy just going to get rid of banking altogether? Are we going to go back to trading furs, horses, blankets, and so on for goods? Are we going to go back to using precious metals as currency?
Obviously I am being a little facetious here, but where is this going to stop? This is not all about mortgages anymore.
I’m going to go home and watch Grapes of Wrath, It’s A Wonderful Life, or Cinderella Man and try to get inspired to come out of a depression!
As for the Fed, they will continue to be reactive versus proactive. No window cut coming until the 31st. I hope I am wrong. As I type this, the DOW is down 215 points for the day!
This year, not 2007, will be the real horror show in terms of unemployment for the housing/banking sectors. This year the big boys start laying off. With the wholesale inflation figure as it has been reported, any further rate cutting by the Fed will either accomplish nothing or just make things worse. As has been stated in this forum many times, the problem is that income has not kept pace. Consumers are tapped out. Companies like Countrywide play a shell game to hide the true extent of both foreclosures and delinquencies. But not for long. Pray to whatever God you believe in for the next President, they will face the economic sh*tstorm of all time.
Of the subject a little bit..but IMB unemployed 1100 today and closed a bunch of op centers..
In a similar vein, MortgageIT will announce (via email, not a conference call) in the next day or two that it will closely virtually all branches and support offices. They will not completely shut down, however, leaving a skeletal presence located in the East and Midwest.
All I can say is, Wow. Those are some serious numbers that Citibank posted today. And they are just for one quarter. Some people are saying that they “overstated” the losses to get all of the bad news out at once. Go read what CR has to say on http://www.calculatedrisk.blogspot.com and I think it’s quite obvious that the people at Citibank think this isn’t the end.
Oh, and Indymac cut another 2400 jobs today. Condolences to all of the mortgage professionals who lost their jobs today.
It’s funny how Citi “overstated” the losses, yet the losses were far less than the values leaked out earlier (which people thought were on-target).
Person 1: I’ll sell you a widget for $20
Person 2: That sounds like a fair price
Person 1: How about $15?
Person 2: No, that’s too expensive.
Its called “managing expectations”…also known as b.s.