Stock Market Pumps And Dumps Continue

The Banks are going through a second wave of equity raising. Stock prices keep moving higher and the banks keep selling equity. The share counts are going to be ridiculous. Hopefully, things improve in the economy - relative to lending - otherwise - banks that show slow or weak earnings growth will have a difficult time showing growing EPS - as a result of the huge dilution. The commercial R/E fallout and credit card fallout should be nasty and will hurt the capital bases of many of the banks. By reloading and selling more equity - they are protecting themselves from further failure…hopefully. It will be interesting to see the scope of the decline as a result of the R/E.

I loved the artwork above. I noticed it at the Depression ERA Art Gallery.

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