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It’s nice to see the mainstream media cover more of the voices outside of the bottom callers who keep tripping over each other to be the first one to call bottom. Merrill Lynch’s Chief Investment Strategist Richard Bernstein said that investors are “significantly underestimating” the risks still associated with the credit crisis and suggested that we are not even close to the end of the problems.
I couldn’t agree more – the more that the mainstream media gets this message out the faster we’ll precipitate the changes that will get us to that bottom, where we can actually start a recovery.
From Bloomberg:
Financial stocks fell, led by Bank of America Corp. and Morgan Stanley, after a limit on short selling expired and Merrill Lynch & Co. said the credit crisis is “far from over.”
Finance company stocks also fell after Merrill Chief Investment Strategist Richard Bernstein said investors are “significantly underestimating” the extent of the credit crisis.
“The problems are not confined to large institutions that are overexposed to U.S. subprime loans,” Bernstein wrote in a note to clients. He said banks and brokerages need “massive” consolidation to recover.
Analysts including Oppenheimer & Co.’s Meredith Whitney and Deutsche Bank AG’s Mike Mayo this week cut profit estimates and forecast further writedowns on mortgage-related bonds.
“You are going to see stresses continue for financial institutions,” said Stephen Wood, who helps manage $213 billion at Russell Investments in New York. “You’re beginning to see that macroeconomic slowdown ripple through.”
Last 3 posts by Morgan
- Subprime Bananas - June 28th, 2009
- Roubini: No confidence in government exit strategy - June 24th, 2009
- Goldman bonuses largest in firm's 140-year history - June 21st, 2009
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