Dick Bove: US banks have been ‘nationalized’

Now you have an indication of just how desperate the government is to find funds so it can fix the transportation system — if it’s really going to go towards that in the end, that is. Not only that, raiding (nationalizing) the banks is going to force banking to become more expensive and the fees are always passed on to the consumer. A new hatred towards bankers will begin thanks to the government plundering its own banking system, which in the end is its own people.

 

A transportation bill in Congress has put the U.S. well on the road to socialism, Dick Bove said Monday.

The bipartisan Senate bill, announced in July, would cut the dividend paid by the Federal Reserve to banks each year from 6 percent to 1.5 percent, and the difference would go toward funding highway projects Continue reading

First a default, then a depression? Some think so

It wouldn’t only cause a depression or another Great Depression, but the Greatest Depression.

Thursday brought a change to that trend, though, as investors heeded a dire message from President Barack Obama, who intimated in a CNBC interview Wednesday that Wall Street was taking the crisis too lightly.

Consequently, stocks sold off sharply and the Treasury Department warned of the dire consequences that might result from a full-blown debt default.

Picking up on that message, Bove said the situation could be more dramatic: A Depression that would cause severe and lasting economic damage.

“The devastation to the United States would be so severe that it would take decades to recover from the Depression caused by a default and the attendant dumping of trillions of dollars of U.S. Treasury securities on the global financial markets,” said Bove, vice president of equity research at Rafferty Capital Markets. Continue reading

Is the Dollar Dying? Why US Currency Is in Danger

The U.S dollar is shrinking as a percentage of the world’s currency supply, raising concerns that the greenback is about to see its long run as the world’s premier denomination come to an end.

When compared to its peers, the dollar has drifted to a 15-year low, according to the International Monetary Fund, indicating that more countries are willing to use other currencies to do business. Continue reading