Long-Term readers and personal students know that I don’t subscribe to counting Elliott Waves, BUT, I do find their analysis on the markets very useful – hence why I promote Elliott Wave International.
I bought the book mentioned below a few years back and It’s striking as many of EWI’s predictions on the broader economic outlook keep being hit.
If you don’t own it, it would be a good purchase
Hope it helps
The Hovis Trader
World’s 15 Biggest Banks Get Downgraded — What This Means for “Safe Banks”
Another one of Robert Prechter’s Conquer the Crash forecasts comes true June 29, 2012
By Elliott Wave International
Today’s news that the losses suffered by the biggest U.S. bank, JP Morgan Chase & Co., may be as big as $9b instead of $2b, as previously announced, came on the heels of another noteworthy news report from the world of banking.
On June 21, Moody’s Investors Service downgraded 15 of the world’s largest banks, including the U.S. second-largest bank, Bank of America. Says Reuters: “…the downgrades reinforce a trend that has seen weaker banks punished for their risk-taking, while stronger banks are rewarded for conservative funding models, ensuring lower costs and higher margins.”
And, “The ratings…gave a competitive advantage to ‘safe-haven’ banks that fund themselves with stable, low-cost customer deposits…”
This seems like a good moment for those “safe-haven” banks to toot their horn a little, as it might just get them more business — just as this quote from Ch. 19 of Robert Prechter’s Conquer the Crash had predicted:
“…relatively safe banks, if they have the sense to inform the public of their safety advantage, are likely to become even safer during difficult times. Why? Because depositors in a developing financial crisis will move funds out of the weakest banks into the strongest ones, making the weak ones weaker and the strong ones stronger.”
This year marks the 10th anniversary of Prechter’s Conquer the Crash, and to mark the occasion, we have put together a special free report for you: an except with 8 key chapters from this forward-looking book.
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This article was syndicated by Elliott Wave International and was originally published under the headline World’s 15 Biggest Banks Get Downgraded — What This Means for “Safe Banks”. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
The HOVIS Trader 