. . . "it" of course being drastic losses of confidence and capital.
When Wells Fargo recently announced record profits, I was reminded of a quip I read recently, to the effect that I earned 10 Billion dollars last year, unless you count the 10 Billion dollars I didn't earn.
I call "Shenanigans."
If you think trusting the press release and putting your money into Wells Fargo stock that day was a great idea, you may want to read This piece by Jonathan Weil at bloomberg.com.
This is going to be ugly when it all finally shakes out, as it must eventually. Remember that commercial real estate is still in the beginning stages of a huge bubble bursting like we just had in residential real estate (that led to the current Depression). You think losing on a loan for a $400,000 house is bad for a bank? How about a 3 Billion dollar mall that will never open and you can't sell the half-finished remains?
Oh, and credit card companies are standing by to lose around a Trillion dollars as well.
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