Chillin' out till it needs to be funded
OR Bank results season is suddenly insignificant for the markets
As JP Morgan announced another 60% decrease in loan loss reserves and the foreclosure conversation took most of its time, the business media still seems happy with the rising incomes int he space and we stay invested in US Financials. So is the new Sue at the Consumer Financial Protection Agency enough to bring succor and rekindle hopes of a recovery after the new QE program goes through?
Strangely, markets across the world have entered a new orbit today with all markets responding in unison to a potentially hyper-inflationary move when the bank results season broke with almost non -descript results as if a chapter was just closed. Fortunately, even if that is so, Financials would be able to live without unnecessary focus and attention and the foreclosures data would get its due attention finally. Of course QE is good news for liquidity and the markets are understandably jumpy. Also, after due discussion on the quantum and scope of recovery markets may settle down to much the same thing albeit in a more optimistic orbit, but really it’s not just us but everyone who is running out of steam on the arguments alive since 2008.
What is happening however is that elections are approaching and the fabric of the story of how the government saved everyone absolutely in tatters and no connection between the destitute in Arizona, the bankrupt governments in California and the empty bank towers in Atlanta. Also, none of these would be directly impacted by the new Quantitative easing and though the Republicans may rejoice right now, the hole is bigger for America as it stares into an abyss of faint and feeble recovery.