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by Perryman on April 21st, 2009

Perryman

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As a number of Huge US banks report unexpectedly high earnings, how are these bank profits appearing out of thin air?

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Answers. 3 helpful answers below.

  • by lovestocook on April 21st, 2009

    lovestocook

    Beware of creative accounting.

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  • by puzzled on September 2nd, 2009

    puzzled

    The key may be in the terminology.

    Unexpected means the earnings are high relative to what was expected. This is normally the case with forecasts(expectations) some are high some are low, very few are bang on the button.

    So it depends what case you want to make, which ones you pick out.

    If they're all high, or all low, then what you got is a lousy forecast.

    Being "huge" doesn't make a lot of difference, but "huge" sounds good if you're trying to push a certain interpretation.

    And then you can't get bigger than the fed and it's been printing money. Which may give grounds for the "out of thin air" bit.

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  • by wildthorn on April 24th, 2009

    wildthorn

    Makes me wonder if these "profits" are the result of the bailouts. IOW, our money.

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