Bank preparations

dealmaker · Jul 18, 2020

Bank preparations

JPMorgan Chase, Citigroup and Wells Fargo stockpiled a collective $28 billion in Q2 in order to prepare for a wave of consumer and business loan defaults. The preparations hit all the banks' profits in the quarter. JPMorgan expects unemployment rates to remain at double digits into 2021. Fortune

ironchef · Jul 18, 2020

Does it mean we should do the same? Your view?

dealmaker · Jul 19, 2020

ironchef said:
Does it mean we should do the same? Your view?

Do you have money lent out?

ironchef · Jul 19, 2020

dealmaker said:
Do you have money lent out?

Yes. I am currently net long options and net long equities, so I am providing liquidity, lending $ to market makers and other traders.

dealmaker · Jul 19, 2020

ironchef said:
Yes. I am currently net long options and net long equities, so I am providing liquidity, lending $ to market makers and other traders.

You’re as safe as one can be....

ironchef · Jul 19, 2020

dealmaker said:
You’re as safe as one can be....

Very reassuring sir. Exact same words my broker told me back in early 2000 when I was loaded with dot com stocks.

He also said this time it was different, a new era, like when the printing press was invented.

murray t turtle · Jul 19, 2020

ironchef said:
Very reassuring sir. Exact same words my broker told me back in early 2000 when I was loaded with dot com stocks.

He also said this time it was different, a new era, like when the printing press was invented.

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With the exception of C, WFC/heavy fined banks; that sector looks fairly strong. Fed figures on single diget unemployment / but they don't really know. And since C is a $5.00 stock but reve\rse split 10 times/ I seldom pay attention to them.WFC may be setting aside much of that for losing lawsuits. ……………………………………………………………………………….

ironchef · Jul 19, 2020

dealmaker said:
You’re as safe as one can be....

murray t turtle said:
%%
With the exception of C, WFC/heavy fined banks; that sector looks fairly strong. Fed figures on single diget unemployment / but they don't really know. And since C is a $5.00 stock but reve\rse split 10 times/ I seldom pay attention to them.WFC may be setting aside much of that for losing lawsuits. ……………………………………………………………………………….

With your reassurances, I am going to lighten up and stockpile some cash.

Relentless · Jul 19, 2020

murray t turtle said:
%%
With the exception of C, WFC/heavy fined banks; that sector looks fairly strong. Fed figures on single diget unemployment / but they don't really know. And since C is a $5.00 stock but reve\rse split 10 times/ I seldom pay attention to them.WFC may be setting aside much of that for losing lawsuits. ……………………………………………………………………………….

They didn't paint a rosey picture though.

Wait until we hear from all the small / medium regional banks. The contrast will be stark.

murray t turtle · Jul 19, 2020

ironchef said:
With your reassurances, I am going to lighten up and stockpile some cash.

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Same here; most likely my buy/sell /buy+ sell ladder gets hit sometime this month- unless markets go tight sideways/not likely...…………………………………………………………………………As far as his ''wear a mask comment'' comment sounds like GS, where he used to work, he disclosed, maybe a mask position/company./WMT/LOL :caution: