The Blog

2022-

2022-01-30 d
THE STATE OF THE DISUNION IV

So which money center bank is going to get a toe tag this round?

JP Morgan Chase is more a political entity than a bank. The next time there is a recession, can JPM still count on free money from taxpayers? As a political entity, they are making lots of woke noises. Good if you are a left wing politician, not so good if you are a bank. Maybe JPM identifies as a solar panel?

BankAmerica / Merrill just had a wee altercation in a smoothie shop. Apparently they are a little stressed out?

Citi has needed a bailout every 8-10 years since Jimmy Carter was in the White House. They are way overdue for their next balance sheet busting screw up. Plus they recently went very woke, alienating big customers like the State of Texas.

Wells Fargo, after a long list of ‘scandals’ (a.k.a. crimes), has been regulated so much they couldn’t get into trouble. They tried, but an abundance of regulations and litigation kept them from shooting themselves in the foot. It also kept them from turning a profit or attracting competent staff.

Goldman Sachs entered the retail banking sector only recently. Their traditional cash cow (trading) is no bueno according to their DJ spinning CEO. Ergo, Goldman’s historical record, which was based on trading not retail, is not useful for predictions.

Janet Yellen is close pals with the folks at Jefferies… an investment bank but not into retail banking. That doesn’t mean Jefferies won’t need a bailout — just that it doesn’t count toward yet another money center bailout.

The big issue this round is that Uncle Sam is first in line for bailouts, and with $29 trillion in debt, trillions more in unfunded liabilities, a senile set of hair plugs in the Oval Office, and a dependence on China to fund US aircraft carriers to use against China… the Fed needs to (and has been) bailing out Uncle Sam.

More inflation is coming, because it's the only way Uncle Sam can service its debts (source)

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