Bank of America: Unemployment and the credit markets are both going to get worse!

[w¡n9Nµ7 §£@¥€r 123]

CEO Ken Lewis:

Let me make a couple comments about our thinking given the current environment. First note make no doubt about it, credit is bad and we believe credit is going to get worse before it will eventually stabilize and improve. Whether that turn is later this year or in the first half of 2010, I’m not going to hazard a guess

...

From an economic standpoint we believe we can see weak but positive GDP growth by the fourth quarter of this year. I have to say that even our internal economists are a little at odds as to the timing, with some seeing recovery earlier. However, we think it prudent to run the company on the expectation that it will be later in the year or early next year. We believe unemployment levels won’t peak until next year, at somewhere in the high single digits. At this point we don’t see unemployment meeting or exceeding 10%, but that will of course be impacted by how long the economy stays in recession.

http://seekingalpha.com/article/131858-ban...nscript?page=-1

Edited April 21, 2009 by Randomizer

[dalegg 143]

Can someone tell me where on the horizon Obama is seeing "glimmers of hope"? I agree that recessions don't last forever and we are certainly going to pull out of this sometime, but what specifically is giving him that hope while unemployment continues to climb?

[w¡n9Nµ7 §£@¥€r 123]

Can someone tell me where on the horizon Obama is seeing "glimmers of hope"? I agree that recessions don't last forever and we are certainly going to pull out of this sometime, but what specifically is giving him that hope while unemployment continues to climb?

Unemployment is a lagging indicator.

Here's your glimmer of hope. 3 out of 10

Overall, six of the 10 [leading] indicators were negative contributors, three were positive, and one was steady.

[dalegg 143]

Can someone tell me where on the horizon Obama is seeing "glimmers of hope"? I agree that recessions don't last forever and we are certainly going to pull out of this sometime, but what specifically is giving him that hope while unemployment continues to climb?

Unemployment is a lagging indicator.

Here's your glimmer of hope. 3 out of 10

Overall, six of the 10 [leading] indicators were negative contributors, three were positive, and one was steady.

Well nobody is gong to accuse him of being a "glass is half (or 3/4) empty" kind of guy I guess.