As Q2 earnings season gets underway, major banks reported today. With the likes of JP Morgan Chase, Wells Fargo, and Citigroup, there were a couple common threads throughout. First, all banks expect that the worst of the economic fallout is yet to come as they amend their forecasts from the prior quarter to a more bleak outlook for the months ahead.
As such, their collective loan loss provisions take us back to levels not seen since the GFC. Despite this negative bit of news, however, with respect to JP Morgan and Citigroup, their trading desks did phenomenally well. Gee, we wonder why that could be? Oh, that’s right – thank you Federal Reserve and all your banana republic funny money. The industries hardest hit when it comes to the banks are retail, real estate, and oil and gas. The very industries that we have been discussing here for months. It was also quite interesting to hear from the banks that all of the “stimulus” spending and other policies that have been implemented has simply delayed the inevitable – protracted economic growth. The problem of course with this is that there is no free lunch. So all we get are a few extra months at the expense of trillions of dollars that we do not have, only to end up where we would’ve ended up anyways, but now with a higher debt load. Only the arrogance and fraudulent behavior of bureaucrats, politicians, and central bankers could have come up with such a scheme. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Debt #Depression #USA #Recession #EndTheFed #Gold #Liberty #Silver