Again the offshoot of what caught Alphaville fancy, this insight into Banking has not hit the major media either and hence critical to know:
What Bove said in June last year in response to a note on how the crisis came about. His short version is to use the bank cash ( none of it is left there by depositors anymore) and pay down European debt while taking the hit at banks holding the debt
Therefore, these countries must, and in my judgment will, repudiate their debt. When they do so a number of large European banks will be forced to take marks on the repudiated debt that will cause them to lose a great deal of money.
American banks will also lose money
Today Rochdale Securities reiterates:
Paying Down the Greek Debt
A client suggested to me that the Greeks have become so expert at manipulating the U.S. stock market that they could ultimately pay off their debt by going long and short at the appropriate times. One has to be impressed as to how well they can make the puppets dance.
More importantly, the bank rally is shortlived and Moody’s will be denominating the sector effectively as junk you can’t touch in the next few hours as it corrects for its pending silence
- Dick Bove has the (very short) answer to what’s going on with Greece (ftalphaville.ft.com)
- Why I was wrong, by Dick Bove (ftalphaville.ft.com)
- Dick Bove Goes Ballistic Over The ‘Mortgage Deal From Hell’ (businessinsider.com)
- U.S. Banks Benefiting from European Crisis (kudlowsmoneypolitics.blogspot.com)
- Bove Says Bank of America Will Hit $30 in 4 Years … Seriously (thestreet.com)
- Dick Bove: Goldman’s Earnings Will Be ‘Strong For The Remainder Of This Year’ (wallstreetpit.com)