Friday, January 28, 2011

Davos - The Money Quotes

BAC's Brian Moynihan is out with some thought provoking money quotes today (emphasis on sarcasm).  Check these ones out.

On housing prices

"Overall, (housing) prices kind of bump around and it will take a few more years to get through this,"

Bump around?  Thought bumping would be movement in both directions?  Appears he's still waiting for the bump up.  

On employment (or should I say unemployment)

On the issue of unemployment in the US, he said the current elevated figures are caused by those who have been out of a job for a long time and not by newcomers, which is a good sign for the quality of credit portfolios.

So apparently unemployment is a FIFO process.  So those laid off recently will be the first to be employed versus those searching for jobs in excess of six months?  Next time someone submits their resume (what is it five applicants for every one job available) they should just put a date stamp at the top so the employer won't have to bother reviewing the resume, just hire those most recently laid off?

On credit quality

The credit quality of the portfolio has improved and, overall, "the credit quality issue is behind the company and behind the US," Moynihan said.

The credit quality "issue" is behind us?  So you are reducing provisions for loan losses and loan loss reserves in the face of falling asset prices, the highest duration of unemployment above 9% since ever and a shadow inventory that is not only growing but in a legal process that shows no sign of letting up in the near future.  

Do these comments sound like someone that should be running one of the largest banks in the US?   Look at the confidence this man exudes.  


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