Capital Commerce

Michael Mayo: Banks Still Stink

By James Pethokoukis

Posted: April 6, 2009

Guess what, bearish banking analysis Michael Mayo is still pretty bearish. Pretty much everyting that isn't a "sell" is an "underperform," according to a research note today. He expects further loan losses in credit cards, construction, commercial real estate and industrial. Clearly, he isn't expecting a V-shaped recovery with unemployment topping out at 9 percent or so.  And that is likely to be the big story going forward. Wimpy recovery with continuing massive job losses.  Could the jobless rate exceed that of the the 1981-82 recession when it hit 10.8 percent? You bet it could, with broader measures of unemployment closer to 20 percent.

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Capital Commerce

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