On Jan. 14, I told you we would be closely watching one of the most significant events of the year:
This event, I predicted, could single-handily determine whether our economy is heading for a major upswing… or is about to fall into a downward spiral.
I’m talking about the Big Banks’ fourth-quarter earnings reports.
Well, they’re out…
And I’ve spent the last several days examining every detail to try to determine what this means for your money.
And today, I want to share the findings…
So let’s have a look at the Big Banks earnings… and see what kind of year emerges.
Last Tuesday, January 14, 2014, the Federal Reserve had finally had enough.
After supposedly looking into big banks ownership of commodity-related infrastructure operations (like warehouses, oil barges, and utilities) for the last two years, which came on the heels of their 2003 review of the same issues, the rock ‘em sock ‘em Fed came out swinging.
Now, they said, they needed to look at “all aspects” of what they’ve been looking at for two years. That’s not because they were looking the other way before.
It’s because now they’re thinking big and asking themselves, “What would be the systemic risk to the system if a big bank owned something like the Deepwater Horizon (the BP well that blew out and cost almost $50 billion to date), or Japan’s Fukushima Daiichi nuclear power plant (which was destroyed by an earthquake-related tsunami and is costing god only knows how much) and the bank got sued, and their share price collapsed, and depositors fled, and that caused a run on other banks, and put the entire financial system at risk?”
Yep, it’s time for a study, they said. And because they are maybe thinking about some related rule changes, in maybe a year or two or three (these things take time, you know), they put out a request for comment. You and I have 60 days to submit ours, and so do the big banks.
But that’s not the “timing” part of this story…
The timing of the Fed’s announcement on Tuesday was just amazingly coincidental, a stroke of almost incalculable luck.