Say what you will, the markets are not looking good.
Say what you will about the quality of financial earnings in 2013 (and we have said quite a bit, making it very clear over the past three quarters that a substantial portion of financial "earnings" has been accounting gimmickry such as loan-loss reserve releases and other "one-time" addbacks which mysteriously end up becoming quite recurring), but one thing that is indisputable is that of the nearly $52 in non-GAAP, adjusted S&P 500 EPS so far in 2013, over 20% is attributable to financials.So many pundits have been warning of a cataclysmic event in the financial markets for so long now. Will Obama and his boys finally break the USA?
New troubles are piling up for U.S. banks as they prepare to release third-quarter results amid warnings of weak trading revenue, a sharp decline in mortgage-refinancing activity and rising legal costs.The USA is far more than the banks and financial analysts. But we just can't ignore the rumblings and false fixes that have brought us to the brink of ruin.
Analysts are scrambling to ratchet down earnings estimates ahead of the reports. J.P.Morgan and Wells Fargo are slated to post results on Oct. 11, with Citigroup Inc., Bank of America Corp., Morgan Stanley and Goldman Sachs Group Inc. due to weigh in the following week.