Goldman says "up" while Chris Whalen says "down". Goldman sees blue skies ahead, while Whalen says banking is "headed into the storm".
Reality: it is nothing but normal for commercial real estate to be the last sector of real estate to go into recession and the last to come out. Housing has already made the turn; it is well on the way out. The storm has already hit commercial real estate. The storm has not passed but the description of "heading into the storm" is hype.
The fourth quarter "bloodbath" is already old news. Banks now have about a year of fat margins as a result of dramatically lower funds. Banks will not heal quickly, but all but horrible earnings news will be "good news".
"He says the industry is in fact "heading into the storm."
- Goldman Sachs bank analysts take contrarian road - FierceFinance (view on Google Sidewiki)