Weekly Wrap: Bank profits and the housing market

Reviewing the week's headlines on Wall Street and beyond.

The news of Wall Street and beyond from Leigh Gallagher of Fortune magazine and Catherine Rampell of the New York Times.

On Wells Fargo and JPMorgan reporting strong profits:

Leigh Gallagher: Yeah it's interesting. Keep in mind: These are sort of the two model students where the banks are concerned. They are the two that emerged probably the most unscathed from the financial crisis. But a number of things were interesting. It was on the good mortgage lending, and also trading and investment banking were also up, and those were two specific divisions that have faced real headwinds this year. So it was good results for both of those two, and we'll see if it bodes well for the next week when the rest of the banks and other companies report.

On whether we've hit the housing bottom:

Catherine Rampell: Nobody knows, to be honest. And it also depends on what you mean by bottom -- are we at the true valuation of housing? That's also a very subjective thing. And in any case, probably you would expect the market to overshoot wherever that natural bottom might be.

About the author

Kai Ryssdal is the host and senior editor of Marketplace, public radio’s program on business and the economy.
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Investors in bank stocks need to keep in mind that these Wall Street banks committed massive fraud on the people of the US and Europe. While a friendly government now protects their fraudulent profits of this past decade, the angry masses are working hard to hold them accountable for their crimes. I wouldn't bet against the masses! These banks have $600-700 billion in subprime loan liability that failed to make the $25 billion bank settlement (that's conservative by far!), and these are still fraudulent gains people want to recover. It is true that the Federal Reserve has worked wonders for these banks in keeping interest rates at zero, letting the banks make money on the Asian and Latin American new middle-class and using this free money to clear some of the massive subprime debt from the bank's ledgers (remember, the shift in accounting standards has allowed the banks to hide most of this debt from us....sound unethical and immoral?? Well, it is.). This while using American and European retirement accounts as high-risk investments boosting the market gains while busting the pensions with bad investments. Keeping Americans and Europeans poor and unemployed .......is that the same strategy as 'keeping your wife barefoot and pregnant"?

A betting person, and that would be the investor, will need to be dazed and confused to enter those murky waters. These schemes only work before the world knows they are happening.

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