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Those were the words this week from Don Straszheim of Straszheim Global Advisors. He was speaking at the annual forecast dinner for the CFA Society of San Diego. "Gone?" I asked him in disbelief. "You mean, like no more Bank of America [BAC 5.57 -0.30 (-5.11%) ] Versateller ATM for me?" Well, no, he told me. "Just gone as in no shareholder equity left. I don't see how B of A or Citi [C 3.49 -0.12 (-3.32%) ] can be worth anything."
Straszheim gave an impassioned speech to the crowd of finance professionals. He was joined by Liz Ann Sonders, Schwab's Chief Investment Strategist. I moderated the event, taking notes furiously.
Forecasting is always a perilous endeavor, but here are the highlights of what these two pros see looking ahead, based, in part, on looking back.
Straszheim, a well-known expert on China, says we are in the middle of a "global buyers' strike."
What's more, he says the stimulus plan "makes no sense...it's crazy". Why? It's too big, for one thing. Any stimulus check or tax cut he gets would go into savings, not into spending, "because that's the right thing to do." Instead, Straszheim would prefer a package of $250 billion, with most of that going to "those bleeding the most," that is, the unemployed, etc.
Originally posted by sweetpeanc
OK, so say Citi and B of A collapse. What happens to all the debt that people owe to to them?
Originally posted by sweetpeanc
OK, so say Citi and B of A collapse. What happens to all the debt that people owe to to them?