Wednesday, October 22, 2008

Is $23.9 Billion a Lot?

October 22, 2008

Wells Fargo Merger on Track for 4th Quarter 2008 Close

Businesses Remain Well Positioned and Committed To Serving Customers

I didn't know you could stack steaming piles that high.


w said...

I am completely numb.

Lex said...


Well, that has to be a new world record for one reporting period. I bet they wish they could give Golden West back.

Rob Dawg said...

I don't think they've even finished paying for Golden West. My concern is for Wells Fargo. They weren't all that different from Wachovia, the western US asset backed debt markets are terrible. When they come clean we may pine for the days of Wachovia. My biggest worry is that WFC tries to keep kicking the can rather than come clean. They could go Enron on us and that's a gutshot to the banking industry.

Jean ValJean said...

In ONE quarter... wow.. I read about that this morning..
I remember about 10 years ago, when it was all over the news that the tabbaco company (RJ Reynolds?) made a ONE Billion dollar profit... it was reported for days and days, how it was such a huge number.

And every time Exxon reports its quarterly numbers, you've had idiots that picket its Irving headquarters, protesting its "profits".

I wonder what happened to the "Windfall tax" that Prez candidates kept droning on about earlier this year?

So... death spiral for Wells Fargo?

Rob Dawg said...

Isn't anybody gonna scratch my blubber to reward me for the strange attractor call of Dow 8800 equivalents? I add now that at most there is one more 9 hand;e pop before another leg down. Regardless of whether there is one more head fake the next direction is down from here. At least 600 points. Ouch.

Jean ValJean said...

I'm sorry, but I already scratch my own blubber enough as it is... scratching another person's blubber... eww.

I will give you dap for calling it though. Will that do?

And here's how my calculations work out for Debt destruction this quarter for Wachovia:
$7,963,000,000.00 / Month
$259,663,043.48 / Day
$10,819,293.48 / Hour (24 hr. cycle)

Aaron said...

good call rob :)

Also, about WFC. I read last week that when they release their 'great' earnings it was just basically massaging the numbers with debatable accounting. ie. I believe they took some money off the books that was set aside for losses in the mortgage portfolios. I don't have time to find the link but one analyst said that I believe.

Jeff said...

So is it still time to wait on the sidelines before plowing cash in at that 8200 point (8800 - 600 pt drop you mentioned)?

Rob Dawg said...

Wells is absolutely counting on tens of billions in tax benefits from their "purchase" of Wachovia for $14 billion.

Rob Dawg said...

Goldspring looks like a great deal at 1.1¢ seeing as it was 6¢ just a few months ago. Just kidding, inside joke.

We can't tell yet. Good companies are getting sucked under with the bad and 8200 is just one possibility. We won't know until we get there.

There's real companies out there like WY and IP that make stuff that have gotten killed for special circumstances reasons. They'll eventually be screaming buys. Apple guidance is lower, just 40% to 120% higher than today's price. Me, almost all insured MMF and CD ladders waiting, waiting, waiting.

Casey Serin said...

Wells Fargo stole $1,000 from me!!

Waaah!! Waaah!! I don't like being forcibly made to pay money back that I owe... I'm going to hold another temper tantrum until Mommy opens her wallet for me again. ;-)

Jeff said...


Yeah, I know what a screaming buy GSPG is. :)

I've actually held off on putting money into the market (with the exception of the Roth IRA money for my wife and I...and I waited there as long as I could) for MONTHS, and holding in a credit union MM account.

My dad, who works for one of the major power plant builders/contractors, keeps thinking that getting into the SandRidge's and Chesapeake Energy's of the world is the good move now. I'm inclined to agree, but I'm not willing to bet the farm just yet.

I'm also wondering whether there will be a mass exodus from the market if Obama gets elected (and correspondingly, a market surge if McCain wins, no pun intended)...

Jean ValJean said...

the link about Wells Fargo massaging its numbers:

Northern Renter said...

Oh yeah?

Pretty soon all of you who have sneeringly described GSPG as a "penny stock" will have to eat your words. You will be shown as complete fools who don't understand anything about basic mathematics because it will fall below the price of a penny per share. So there!


Peripheral Visionary said...

I suspect that GSPG will eventually form a bottom when someone realizes that it is a remarkably affordable alternative to wallpaper.

Rob Dawg said...

Wallpaper? Casey can keep warm under the bridge near the river with a burn barrel and the stock certificates he was so stupid as to have taken physical delivery on. How much wallpaper does a van need?