"You know what the news is-- in a minute, you're going to hear the rest of the story"- Paul Harvey
Former North Fork Bank CEO, John Kanas, was on CNBC this morning. I really enjoyed John's commentary because it was honest and straightforward.
In August, Kanas said, "The US banking system will lose some 1,000 institutions over the next two years." This morning he punched the spinsters right in the face when he said, "People are saying that unemployment is a lagging indicator. I'm beginning to think it's a leading indicator."
He went on to say that he believes the 1000 bank failures he predicted in August will happen, and the economy is not recovering as much as some our leading investors to believe.
USA Today reported today that 34 banks did not make their quarterly dividend payments for the TARP loans they received from the U.S. Treasury. The number of missed payments almost doubled from last quarter when 19 banks didn't make their payments.
So, the short answer here is a simple one. We are currently in a bear market rally that will eventually end. The U.S. economy will take much longer to rebound than what you are being told, and raising cash in this rally is probably a good idea.
The Rest of the Story:
Steve Wynn, is the man and the face known for the development of Bellagio, The Mirage, Treasure Island at The Mirage and the Golden Nugget in Las Vegas, Nevada as well as the Atlantic City Golden Nugget in New Jersey and Beau Rivage in Biloxi, Mississippi. His birth-name is Steven Alan Weinberg.
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