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View Diary: "79% of investors have no trust in the financial system." (154 comments)

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  •  we should listen to these people because why? (0+ / 0-)

    these same institutional, hedge-fund, and private investors ate the crash at least as hard as the banks did.  

    Before the crash they were exuberant, after the crash they're depressive.  Both states were overreactions, neither particularly informative about the state of the banks.

    •  The article was informative about the state (2+ / 0-)
      Recommended by:
      Mr Robert, lotlizard

      of the Banks. Or rather, the motives of investors, and manic-depression was not mentioned.

      The reason investors are avoiding banks is that JPMorgan admitted that they had been cooking their figures.

      And such cooking seems to extend to all the other major banks, as shown in detail after detail after detail after detail in the article.

      Are you saying visible, admitted, and widespread fraud in the major Banks' books, plus questionable and unrealistic accounting, are not a reason for investors to avoid them? That they do so based on a transient "mood" they have? Really?


      Markos! Not only are the Gates Not Crashed, they've fallen on us. Actual Representatives are what we urgently need, because we have almost none.

      by Jim P on Wed Jan 16, 2013 at 10:10:44 AM PST

      [ Parent ]

      •  I am saying you're imagining the connection (0+ / 0-)

        Investors aren't shying away from banks because they take huge risks, or use complicated filings to disguise the risks they're taking.  These banks have been doing that for 20 years.

        They're shying away from banks because banks no longer make the kinds of profits they used to make when they became market darlings.

        But those profits were premised on the risky behavior laid out in the article.  If anything, it's a tentatively [i]good sign[/i] that investors are shying away from the banks.  It means that the banks are no longer focused on growing their earnings to please Wall Street.

        •  The article also emphasizes (0+ / 0-)

          that the Banks have been lying to their shareholders.

          It's not either/or. People do things for multiple reasons. In finance, finding your "partner" is lying to you tends to kill confidence and the desire to do further business. How could that not be a factor?

          Business is based on confidence. Always has been, always will.


          Markos! Not only are the Gates Not Crashed, they've fallen on us. Actual Representatives are what we urgently need, because we have almost none.

          by Jim P on Wed Jan 16, 2013 at 06:05:59 PM PST

          [ Parent ]

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