Predictions: 9 For '09 From Dennis Kneale
http://www.cnbc.com/id/27955830
Predictions: 9 For '09 From Dennis Kneale
3. Banks reap billions on overdone writeoffs.
By late next year some big banks will realize ample profits on the damaged assets they wrote down so severely—the mortgage-backed securities, collateralized debt obligations and other arcane weapons of their own destruction.
7. Print media will survive.
In fact the Old Media may have a surprise resurgence of sorts, as advertising price cuts bring back sponsors and once-torrid online ad sales continue to slow down.
9. The next bubble begins.
By late next year, some brilliant mind on Wall Street will devise the next great black box. One guess: insurance annuities. One banker noted the other day that they have an awful lot of unrealized equity value, juicy and ripe for securitization.
From Bloomberg : Insurance Rally
The S&P 500 Financials Index added 8.6 percent for the steepest advance among 10 industry groups, as insurance companies climbed 14 percent collectively. Prudential jumped 35 percent to $28.52. MetLife gained 22 percent to $30.76. Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc. each climbed at least 4.1 percent.
Hartford, Prudential, MetLife, Lincoln National Corp. and money manager Ameriprise Financial Inc. would benefit if the National Association of Insurance Commissioners opts to relax capital requirements for managers of variable annuities, UBS’s Andrew Kligerman wrote in a report today. The association is likely to reach a decision by year-end and could announce one as early as Dec. 9, Kligerman said.
Users browsing this forum: No registered users and 7 guests