Dick Bove.jpgIf bank analyst Dick Bove is to be believed, the good times are about ready to get rolling again at the banks. In fact, Dicky B thinks we may be on the cusp of a new “golden age” of profitability. He contends that right now the only thing on the wrong track at the banks is loan losses. Really?! Once loan losses stabilize we are back off to the moon again. The period from 2004-2007 was truly a golden age of profitability for the banks. There was an insatiable appetite for cheap credit spurred on by virtually non-existent lending standards. Leverage ratios reached dizzying heights and it seemed like home prices would never fall. Now fast forward to 2009 and what do you find? Many households are drowning in credit card and mortgage debt, banks are being pressured into drastically reducing leverage, and “legacy” assets are still a cancer to quite a few balance sheets to name just a few of the issues out there. But have no fear, says Mr. Bove, all you need is a steep yield curve and a little bit of confidence back into the system and the rest will fall back into place. To quote the gospel according to John McEnroe, “You cannot be serious!”

Comments (36)

  1. Posted by guest | June 1, 2009 at 3:30 PM

    Greg,
    Keep up the work. Seems like you can provide some better analysis to this site compared to all the smut that Bess and EP have been posting. Cheers.
    -PropDres

  2. Posted by guest | June 1, 2009 at 3:32 PM

    @2- fuck off
    – EP
    Sorry you had to see that, Greg. Good work.

  3. Posted by guest | June 1, 2009 at 3:32 PM

    No mention of the words adorable, woodland or creature? FAIL, Greg, FAIL!

  4. Posted by guest | June 1, 2009 at 3:34 PM

    Sounds like Bove would be a subscriber to the Benjamin Dover style of investing, and would fit right in at the White House, SEC, and Fed. Nice piece Greggo

  5. Posted by guest | June 1, 2009 at 3:39 PM

    Never trust a man with his head on upside down.
    Greg, has he contacted you yet to complain – that’s his meme.

  6. Posted by guest | June 1, 2009 at 3:40 PM

    Never trust a man with his head on upside down.
    Greg, has he contacted you yet to complain – that’s his meme.

  7. Posted by guest | June 1, 2009 at 3:40 PM

    I thought I told you to sit down when you pee?

  8. Posted by guest | June 1, 2009 at 3:44 PM

    Greg, I hate you. I will not stop until I rid the earth of your seed.
    Magua,
    Chief, Huron Capital

  9. Posted by guest | June 1, 2009 at 3:45 PM

    Sounds like Bove had a big tall glass of Koolaid in Bernarke’s office…..
    Good Luck with that Dick!

  10. Posted by guest | June 1, 2009 at 3:49 PM

    Does anyone know which firm Bove is working for this week?

  11. Posted by guest | June 1, 2009 at 3:51 PM

    It’s obvious to TGFD what Bove is doing.
    He’s buying bank stocks today on margin and hoping to pump them up a bit for a quick profit on the dump.
    Too bad that a clown like Bove has the soapbox and the bullhorn. Otherwise he’d just be pumping-away in obscurity.
    The Guy from Delaware

  12. Posted by Anal_yst | June 1, 2009 at 3:52 PM

    Bove is so cute, really, I just wanna pinch him (no homo)

  13. Posted by guest | June 1, 2009 at 3:53 PM

    steep yield curve would be great only the pool of borrowers is decrementing each tick higher. Wasnt borrowing short and lending long what got us into this trouble in the first place?
    Net Interest Margins are not expanding.
    Even after a 35% move how far away from “Generational Buy!!!!” are we now?

  14. Posted by guest | June 1, 2009 at 3:53 PM

    @11 JT Marlin?

  15. Posted by guest | June 1, 2009 at 3:53 PM

    Buy GM stock, it’s up!, according to Bove’s investment approach.

  16. Posted by guest | June 1, 2009 at 3:56 PM

    Dick Bove = Louis Cyphre.

  17. Posted by guest | June 1, 2009 at 3:57 PM

    @2 “Keep up the work. Seems like you can provide some better analysis to this site compared to all the smut that Bess and EP have been posting.”
    You love it, bitch.

  18. Posted by HeadlessHorseman | June 1, 2009 at 3:59 PM

    Bove looks like a love child that Yoda fathered from some drunk Ewok skank.

  19. Posted by guest | June 1, 2009 at 4:03 PM

    Greg,
    Your second post and you’ve already blown your cover? Mon dieu, girl, people can detect, through this “analysis,” that you once bore the title of “Dollar Dominatrix.” And if you’re going to reveal your identity like this, why not take a little time to do some product placement by reminding readers how you called the bank bottom in March!
    Your friend,
    M Mayo

  20. Posted by guest | June 1, 2009 at 4:05 PM

    Does this mean that the abominable EP will post no more?

  21. Posted by guest | June 1, 2009 at 4:10 PM

    Ya, where’s EP? Maternity leave?

  22. Posted by guest | June 1, 2009 at 4:13 PM
  23. Posted by guest | June 1, 2009 at 4:20 PM

    @ 18
    …I do
    -PropDres

  24. Posted by guest | June 1, 2009 at 4:25 PM

    @22
    That was a sick joke.

  25. Posted by guest | June 1, 2009 at 4:26 PM

    Is Bove a Jewish name?

  26. Posted by guest | June 1, 2009 at 4:28 PM

    I miss EP’s cracklin-crisp style.

  27. Posted by guest | June 1, 2009 at 4:40 PM

    @PropDres– just sayin’.
    -18

  28. Posted by guest | June 1, 2009 at 5:44 PM

    @26: anti-semite, much?

  29. Posted by guest | June 1, 2009 at 5:45 PM

    @26: anti-semite, much?

  30. Posted by guest | June 1, 2009 at 6:20 PM

    keep shorting fuctards. i like money, and it is the sweet stinky cash from shortards that i like the best.

  31. Posted by guest | June 2, 2009 at 5:42 AM

    Citi is a screaming buy. I know because Dick told me.

  32. Posted by guest | June 2, 2009 at 5:47 AM

    He looks kind of Yoda like…
    EQUITIES BUY,YOU WILL.

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