The Trump administration has wasted no time in initiating what may become the most significant financial deregulation push since the 2008 financial crisis.
The general commentary seems to view the bank dereg as an unmitigated positive,
so i'm glad to see you bringing up the risks. Usually as competition heats up,
probity and risk control gradually go out the window, so i think this leads to trouble Again,
eventually. An investor might likely make money on rising earnings, a hot merger market etc over the short haul, but i would worry about when to get out. JPM is the only large bank that has
rewarded a buy and holder of their shares. The rest have seriously under-performed the sp500
if you do a chart that goes back to 2007 or thereabouts. i dumped Citi shares back then, and if i had been buying instead of selling, i would still be down somewhere around 90 percent. Along with direct lending problems, crises like the savings and loan crisis, investment banks sponsor and get intertwined with all the worst frauds, like worldcom or enron...
this time they'll be competing against an overbuilt shadow lending world, private credit
where competition has already reduced returns razor thin, and they are practicing 'extend and
pretend' right now. this context is going to shorten the window of opportunity, and lower
The general commentary seems to view the bank dereg as an unmitigated positive,
so i'm glad to see you bringing up the risks. Usually as competition heats up,
probity and risk control gradually go out the window, so i think this leads to trouble Again,
eventually. An investor might likely make money on rising earnings, a hot merger market etc over the short haul, but i would worry about when to get out. JPM is the only large bank that has
rewarded a buy and holder of their shares. The rest have seriously under-performed the sp500
if you do a chart that goes back to 2007 or thereabouts. i dumped Citi shares back then, and if i had been buying instead of selling, i would still be down somewhere around 90 percent. Along with direct lending problems, crises like the savings and loan crisis, investment banks sponsor and get intertwined with all the worst frauds, like worldcom or enron...
this time they'll be competing against an overbuilt shadow lending world, private credit
where competition has already reduced returns razor thin, and they are practicing 'extend and
pretend' right now. this context is going to shorten the window of opportunity, and lower
the returns during that window...