The MSM was certainly quiet about Wells Fargo’s shitty 2nd quarter results where they saw revenue fall, while using accounting entries to relieve loan loss reserves to generate a fraudulent miniscule profit. Wells Fargo is the largest mortgage lender in the world. The number of mortgage originations crashed by 58% versus last year. A critical thinking individual might ask how we could be experiencing a strong housing recovery with skyrocketing price appreciation if the largest mortgage lender in the world is experiencing a crash in their mortgage lending business, with a 39% decline in mortgage banking income. Luckily, there are few critical thinking people in the country and none in the captured mainstream media who are touting these shitty results as solid.
It’s amazing how much profit you can generate with accounting entries. The brilliant CEO of Wells Fargo reduced his provision for future losses by $435 million versus last year, therefore generating the standard EPS beat required by the Wall Street shysters. The economy is currently in recession, subprime auto loans are beginning to go bad, the housing recovery fraud will lead to future mortgage losses, and student loan debt is a ticking time bomb. So Wells Fargo dramatically reduces the amount set aside for bad debt losses. Just like they were doing in 2007.
They are also desperately trying to sell their student loan portfolio before it becomes an exploding cigar in their faces. I’m sure Obama and his minions will pay top dollar to acquire that subprime slime. The brilliant bankers at Wells Fargo increased auto loans by 11% as everyone knows consumers with less and less household income are great credit risks. If you can fog a mirror, you can get a 7 year auto loan. What could possibly go wrong?
Even the criminal banking cabal can no longer crank out fraudulent profits to prop up their stock prices. This little game of extend, pretend and defend their criminal acts and fraudulent accounting is growing long in the tooth. The collapse is coming. You will not be warned. It will happen over a weekend. On Monday they will have changed the rules. You will be the loser. Take your money out of the banks.