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April 23, 2010     Post-Gazette
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April 23, 2010
 

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Page 4 POST-GAZETTE, APRIL 23, 2010 EARNINGS ARE PROPELLING THE MARKET JP Morgan's net is up 85% they will probably be reversed and a 2.2% rise in clothing as the economy firmed, and and flow to the bottom line," sales, yet high unemploy- Remembering the Legacy of it led major banks higher Smith says. JP Morgan's to- ment, light credit, state bud- tal credit reserves top $3.9 bil- lion or 5% of loans. Most big banks are over-reserved ac- cording to Smith. They plan on increasing small business loans to $30 billion by year end and add nearly 9,000 employees. Bank loan modi- fication, which the Obama administration is pressing banks to do more of, to strug- gling homeowners since 2009 when government sub- sidies by banks tells you the recovery is going to be hun- gry for it and it's driven by the economy. It's a matter of people's willingness to borrow, and not the banks willing- ness to lend. It's driven by the economy. Inflation is tame as Bernanke, the Fed Chair, is standing pat on interest rates and may not increase them for at least six months. Re- tail sales rose more than ex- pected in March, and con- sumer prices were little changed as the economy con- tinues to expand without fu- eling inflation. Consumer prices rose 0.1% in March. Wall Street expected a 1.2% gain while prior months were revised upward. Sales climbed 7.8% versus a year ago, the biggest jump in over four years, but consumer prices rose .2% in March, ac- cording to the Labor Depart- ment. The Federal Reserve said its Beige Book survey reported that 11 of the 12 dis- tricts were fiat. "With the sup- port from fiscal policy set to diminish in the coming months, further economic expansion will depend on con- tinued growth in private final demand," Bernanke said to a congressional panel. Even with unemployment at 9.7% with better than expected first quarter income. CEO Jamie Dimon was more up- beat about the economy than he was previously stating that a clear and broad based improvement should con- tinue in a strong economy. The nation's biggest bank earned $3.3 billion in its I st quarter or .74C/share, on revenue of $28.3 billion. Ana- lysts expected .64C/share. JP Morgan gained 4% on Bank of America's earnings due out this Friday. What we have seen from JP Morgan should extend to the other banks re- porting next week. Citigroup jumped 7% and Wells Fargo 3%. It will report next week. JP Morgan's investment bank noted $2.5 billion, but retail banking lost $131 mil- lion, and credit cards lost $303 million. Overall credit losses totaled $7.9 billion, what analysts had expected. The firm set aside $7 billion for loan losses down 30% from last year. It also set aside $2.3 billion for litigation over mortgages and a fight with Washington Mutual bondhold- ers. They are predicting that as we go forward the credit losses will be less than what they are today. The loan losses are becoming less and less and will not need the pro- visions they have already set up. Credit stabilization is the big take away said William Smith, head of money man- agement from Sam Advisors, which has stakes in all the big banks. Banks will not need "all the loan loss provi- sions they have already set up." As long as provisions for future losses remain stable in the 2 nd and 3 rd quarters, Greater Boston's Affordable Private Cemetery Traditional Burial Plot (for tarting at 51500 MICHAEL CEMETERY  COMMUNITY MAUSOLEUMS GARDENOLUMBARIUMS 617,524.1036 31 www.stmichaelcemetery.com the Italian community for over 100 years! NORTH END00 Owned and operated by Pamela Donnaruma, Publisher, Post-Gazette Quality Printing for all your Commercial and Personal Needs m COMPETITIVE PRICES get deficits, and weak con- struction activity are signifi- cant restraints on the recov- ery as the massive stimulus wanes. Scot Brown, Chief Economist at Raymond James, may increase his forecast on GDP growth to 4%, up point. There is no reason for the Fed to raise interest rates anytime soon, Brown said. Oracle is buying a software firm in Waltham for $680 million. Phase For- ward, Inc., which manages clinical drugs and medical devises, with revenues of $213 million and net income of $8 million is being snapped up by a west coast company. Oracle will pay $17/share in cash, a 30% premium over the $13 stock price. Chase Forward has been used in over 10,000 clinical trials. Butler Bank of Lowell was closed by the SEe, the first bank to fail in Massachu- setts. It had a negative net worth and taken over by an out of state bank. Goldman Sachs was ac- cused of fraud by the SEe for selling mortgages and betting on them to fail. The investors lost close to $1 billion. The mortgages were slated to fail and Goldman had insurance on them and stood to profit ff they declined in value. They were sold to two European banks that bought the secu- rifles and lost over $1 billion. The stock of Goldman fell over 30 points on the news and Goldman's Paulson was in- volved with the trades and helped pick out the securities and profited from the decline in value of these securities. Goldman was fined over $500 million by the SEe and the stock dropped in value -- 26 617-227-8929 points. It's time to call your financial advisor or call me 617-261-7777. Vazza Funeral Homes 262 Beach St., Revere 781-284-1127 11 Henry St., E. Boston 617-567-0955 Louis R. Vazza - Mark A. Tauro Funeral Directors www.vazzafunerals.com Unit 8tas ' 00nsus 2010 Be part of History! APPLY NOW! Census Takers Flexible hours & paid training. Must be U.S. Citizen and pass written test. Great Pay!! $22.75/hr for Boston Call TODAY 1-866-861-2010 For more info and practice test, go to www.2010censusjobs.gov US Census Buteou ls an Equol Opportunlly Ernptoyer The Boston Tea Party I remember like yester- day, the two-year long cel- ebration Boston experienced back during America's Bi- centennial. Boston's motto: "Where it all began" and "The past is prologue." Back in 1975-76, we Americans still understood what the War of Independence was all about. We still understood what the Bill of Rights signified. We still appreciated our political liberties and our economic freedom. We knew that the original Tea Party in 1773 wasn't really about tea but about our right to be free of oppressive government. I wonder aloud where folks like Thomas Jefferson, Alexander Hamilton, Patrick Henry, Samuel Adams, George Washington and Paul Revere would be stand- ing today. Would they align themselves with a govern- ment growing in power or would they be supporting today's Tea Partiers worried about where our govern- ment was taking us? Some- thing is terribly wrong when most people just watch gov- ernment taking control over so much of our lives and tell- ing us what's good for us since we all must be so stu- pid and in need of its direc- tion for our own good. Most people are taking more from government than giving it. To these hapless folks, government has be- come as addictive as crack cocaine. People need govern- ment handouts and are afraid to do for themselves. They seem willing to follow orders as long as those checks keep coming from Uncle Sam. Today, we do ap- pear to have become that nation of sheep long ago written about. Government keeps suck- ing us in with offers many just can't refuse. Soon we will differ very little from Soviet citizens of the sixties. People vote and pretend it means something. Most of us think all our elected offi- cials are useless. Everyone days, "Throw the bums out" but rarely do. The Obama Administration along with Democrats in both Houses of Congress are driving us closer and closer to a social- ist type of government where they control us. Most people just go along for the ride as long as there's something in it for them. Our Bill of Rights is threatened as is our con- stitution from those in power who think the US Constitu- (Continued on Page 14) L TS ion