Bank Stocks

Wall Street

Why the Latest Big Bank Scandal Is Worse Than Usual

Big banks are routinely penalized for shady activity.

But Wells Fargo's latest scheme is indicative of systemic, incentivized criminal behavior that'll take more than a $190 million fine to fix...

Wall Street

Big Banks Could Implode Before They're Broken Up

Common sense and self-preservation tell you not to tangle with wounded animals; you're liable to get bitten… or worse.

And when that animal happens to be, say, nearly all of the "Too Big to Fail" banks in the country, everyone can get hurt.

That's exactly what's happening now. As you'll see, it resembles nothing less than a hungry snake eating its own tail, or a financial catch-22.

They benefit from central bank support, but the central banks are dangerously raising their risk profile. They thrive on capitalism, but competition is killing them. They need smart regulation, but they're getting tough regulation instead.

These are all serious problems that, by accident and design, are setting the global economy up for a system shock that will rival the financial crisis of 2008.

Make no mistake, these banks need to be curbed for our good, but that needs to happen in an orderly, systemic fashion.

These banks need breaking up, but it can't happen like this...

Wall Street

The Next Big Bank "System Shock" Is Inevitable – the Proof Is in the Earnings

Big banks' size and structural weaknesses are enough to push markets to the brink, but that's not all. How they're circumnavigating barriers to their profitability could ignite the next financial crisis.

And their Q1 2016 earnings are just more evidence that the next catastrophe is inevitable. Take a look...


JPM Stock Price Climbs Today After Beating Low Expectations

The JPM stock price today is climbing after the company posted better than expected results in its Q1 2016 earnings report.

JPMorgan reported earnings per share of $1.35 on $24.08 billion in revenue. Analysts expected $1.26 on $23.8 billion.

It's true that JPM shares are climbing today, but investing in this megabank could be a bumpy ride for long-term investors...

Wall Street

Here's the Size of the Scam the Fed and U.S. Companies Are Pulling on Us

Stocks have been on a tear. After looking weak in February, they've soared close to 13% in a matter of weeks.

So why does it all feel like a magic trick? Why isn't the market rally giving investors any solid feelings? Why is everyone so nervous?

I'll tell you what's going on, who's responsible, and what you need to do now. Let's get started...

Wall Street

If You Want an Accurate Financial Forecast, Ask a Waiter

Many investors really start to study the markets this time of year in an effort to divine what's next for global markets and, by implication, their portfolios.

But for an accurate financial forecast, I turn to the world's top steak houses, which are known haunts for global traders anxious to blow off some steam and have a fabulous meal.

Today I'm going to talk about what's not"on the menu" – pardon the pun – and why. Then, I'll highlight an investment poised for profits as a result.

Here's what waiters can tell you that economics can't.

Wall Street

How You Can Profit When the Banks Raid Deposits

Protecting your capital from threats is a bedrock principle of investing.

It's why investors seek the relative safety of bonds, for instance, or precious metals or the U.S. dollar.

But right now, there's a severe capital threat brewing, courtesy of the politicians who bailed out the banks after the crisis.

What's worse, this is very likely going to hit your cash "where it sleeps."

We've seen this coming for years now, and there's been a major new development (that was conspicuously absent from the headlines) that raises the threat level to "imminent."

But there's some serious upside to capture as the banks get more desperate. Here's what I mean...

Wall Street

I Warned You About "P2P Lending"… and I Was Right

Investors are better off borrowing from a P2P lending site than investing in any of them.

If you want to get an online loan, go for it – but don't waste your money betting on any of the sites being a home-run investment.

For now, you should keep your capital away from marketplace lenders. Here's why...

Big Banks

166 Trillion Reasons Why Bank Stocks Are So Cheap

My continuing search for sectors of the stock market that are trading cheaply and offer the potential for gain has led me to a controversial slice of the market: bank stocks.

Looking at the "Big Four" in the U.S. banking sector, it's easy to conclude that the sector is undervalued…

But that conclusion may be a bit misleading.

Make no mistake – by traditional measures banks look cheap, and their stocks could do fine until the next financial crisis.

But that's the problem. Looking at banks that way ignores the elephant on their balance sheets, and the potential damage to our portfolios.

Here's what's really driving this critical economic sector into a "buyer beware" investment category...

Big Banks

That Warm Air You're Feeling Is the Big Banks' Stinking Bad Breath

I can't figure out where that warm breeze is coming from.

Oh, it's the air of confidence wafting over me knowing everything's as it should be with our too-big-to-fail banks, and that they're not going anywhere.

The big banks are safe, they have a handle on their assets and liabilities, and the Fed's stress tests are a warm blanket that lets us all sleep well at night.

What, you're still worried?