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It's from now well the Wall Street Journal is reporting today that banks are closing branches across this country take a look at this after years of -- Major banks shedding the war on -- 2000 branches in 2000 while putting bank branch totals.
At their lowest level since 2007.
-- officially knew what capital co-founder president -- -- not -- -- like the financial wealth you come on the show several times talking about the four pillars.
To your colors are mentioned in the journal today that they're shutting down branches.
And I have to say it actually gives me with a bit more enthusiasm for the sector now that said -- will be unintended consequence OK I did this.
Complete reversal of strategy when banks were.
Addicted to within the branch essentially every quarter they're recording.
I guess new -- customers who are they were when they were hoping would be good to -- By putting brick and mortar but the fact is they were not running their business efficiently what we're now seeing.
Is -- a branch is it profitable it's gonna get shot.
Bank of America 193 branches -- -- that's just because that branch was not profitable.
Well again I think they're gonna focus on areas that are profitable areas they can get achieve a certain level of deposits.
And I think significantly -- -- -- move to online banking whether be at home when your PC our new mobile device understand that over 53% of transactions now are done.
On devices and done online in which case they just don't need to brick and -- so the reality is that will be unintended consequences.
Communities will get hurt jobs will be lost the fact is the banks are gonna operate now as a company -- -- about making money they're -- shut this.
Let their regional -- and we're looking at some of the names and obviously US bank wells Fargo Bank of America -- the bigger names on this one but the original banks as well also can you not discuss many times that's the one of the things that actually -- that sector.
Through the last I was in 20082009.
People -- afraid of big banks they went to the smaller bag it is good they wanted to face they wanted that personal connection.
Not and I agree we think there certainly is a role for the community the regional banks but the reality is people are not conducting their business.
In these stores I refer to the stores because of -- if a branch is not profitable.
And the bank has to reconsider whether or not they want to keep that store open.
Overseeing easy -- the reason is saying we love that the face of the community bank but if you're not gonna show up in which a deposit for those you know can -- to about borrowing we're gonna do your transactions online that we don't need to keep them there.
-- just about market movements now because what we've seen is about -- -- eighty billion dollars moving an index funds and ETS just coming up for the first quarter amazing performances and particulate consumer staples.
With healthcare financials -- is talking about it who cares what you're saying for the second part of -- got to be some risks that are on your license for Q2.
-- I was warming about history repeating itself.
I don't wanna see April repeat itself from the last three year.
And it is a little daunting as we head into April once again three years -- we've had certain peaks in April and there's been a Dana April last three years where there's been a turning point and actually in the drops and it looking like ten to 19% we don't expect that type of drop I will say there are some concerns.
First of all we think the spending cuts there were part of you know the sequester are gonna start to be felt we think you know the tax increase that took place both actually show some levels of fiscal -- which is great but it's gonna start hitting consumers in the wallet.
And it's gonna start start to hit the economy so -- a little wary that there might be a little too much complacency.
I'm a little too much enthusiasm.
So we are a little cautious now heading into a time where when he went on whenever the parties that I don't go this well.
It was -- around too long edges that you talk about caution David Stockman was on Fox Business this morning and -- company I was sitting next to him fascinating interview he wrote a piece.
Pessimistic about us the US economy but he also railed against Ben vernacular to play you a cell -- -- -- -- Iraq's on the other side.
The entire us for a machinery of Wall Street is medicated.
By fed policy the interest rate is in a real free market interest -- anymore it's entirely -- medicated.
The overnight rate to three year rate to five year rate to ten year rate all of -- -- set by the Fed.
Although the fast money traders are trading -- the Fed.
And if they think the Fed is ever gonna trade direction change directions they will sell the -- as fast as they bought it -- that's why we're in the mother of all bond prices the stock market.
Trades entirely on whether there's more -- coming from the Fed.
And whether the smoke signals.
I did it -- Oh we -- we as a point I mean we've been talking.
-- numerous times -- showed that one of the key driver not the most important driver of the equity market performance in the overall market performance has been.
The easy monetary policies of the Fed interest -- -- have been provided that is true.
And and people are watching you seen what signs of exit and and what signs of change but the reality is -- -- that story is half baked.
Meaning so the money -- and the question now is how to connect exit you know I think he called on the chairman Bernanke thought the worst chairman of all time.
I guess is -- to go to cash find out -- we're still meet with -- It is not going to be about the exit.
And I think the other thing I would I would challenges and what was the alternative.
-- -- -- When -- -- fed policy -- hand grenades and portions I you're not playing darts not playing rifles you were throwing money at a problem to try to stop what people said what -- bidding for greater calamity if it wasn't done.
Now we're dissecting it but the fact is he's right.
Did the markets are propped up by the Fed and now the key challenge that the chairman Bernanke is how can unwind this and next.
I Jimmy you also said only get this went -- to our viewers that we need to be concerned about the jobs numbers that we're going to be getting out.
Later on in this figure that's on your radar for later on in this -- we'll have to bring you back to get a reaction to that Tim firstly thank you very much right -- capital well.
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