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Credit crisis still fading?

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Credit Crisis
Bear Stearns
Banking Industry
UBS
Richard Bove
quarter earnings
Punk Ziegel
Deutsche Bank

We noted recently that ubiquitous analyst Richard Bove of Punk Ziegel has pronounced the credit crisis over. It seems more people are starting to agree. There will be more writedowns ahead, but the likelihood of major Bear Stearns-like pain now seems slim. A good indication is the reaction to the news that UBS would take $19 billion in writedowns and Deutsche Bank would take nearly $4 billion. The market rallied on the news. Not so long ago, such news would have prompted more anxiety. Another positive indication is all of the regulatory activity going on. The talk now is more about long-term solutions. That said, first quarter earnings may hold some surprises, but it's probably safe to say the surprises will not be major. They could potentially even be upside surprises. -Jim

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NOW, how about a bailout for the millions of Americans who lose money every day by the recession they have been in for 3 years - wages do not rise when all the bills DO, especially when the Capital One's of the world tout low interest rates but do not mention that they have now added a $4-$10 MEMBER FEE to their take (what is that except high interst?), then jobs disappear, unemployment benefits run out and do not get extended because Congress wants to bail out their rich friends and not the average Joe who makes it possible for the rich folks to stay rich, kids lose insurance, electricity gets cut off, no money for gas to go find a job - it is a vicious circle that the Clintons of the world have never had to face. Another reason to change the Status Quo in Washington.

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