JP Morgan Chase is quiet but will be delivering their numbers soon. The Wall Street experts aren't looking so smart these days and considering the positive response to the ugly announcements, you have to wonder just how much they've learned from this experience. People believe what they want to believe.
So far, investors have been quick to embrace the writedowns, sending shares of Merrill, Citigroup and UBS higher on the belief that the worst of the credit crisis is behind them.
Punk, Ziegel & Co.'s Richard Bove labeled that kind of thinking as "deluded." Mortgage and derivatives businesses at many of these firms have taken a wallop and may not recover for several quarters.
"The assumption that by writing off the stuff, these business will turn around and become vibrant is almost insane," said Bove. "It's not going to happen."
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