Great American Short: COF

I am officially bearish on Capital One.

Big lenders — like American Express, Bank of America, Citigroup and even the retailer Target — have begun tightening standards for applicants and are culling their portfolios of the riskiest customers. Capital One, another big issuer, for example, has aggressively shut down inactive accounts and reduced customer credit lines by 4.5 percent in the second quarter from the previous period, according to regulatory filings.

Too little, too late?

Analysts Tell You What Just Happened

"He’s got a chart to illustrate that analysts are exceptionally good at one thing and one thing alone - telling you what has just happened."

California Tax Revenue in September 2008

Compared to September 2007, General Fund revenue in September 2008 [pdf], was down by $465 million (-4.4%). Corporate taxes were below estimate by $485 million (-21.0%), and personal income taxes were below last September by $26 million (-0.5%). Sales taxes were $71.7 million greater (3.5%) than last year. The total for the three largest taxes was below 2007 levels by $440 million (-4.4%).

New Deal #2

Good comment from Sovereign Speculator, a favorite new blog along with Capital Observer.

In this case, we are clearly being prepped for New Deal #2, involving at least the following programs:

• Public works projects. A resurrection of the Works Progress Administration (aka WPA or “We Piddle Around”).
• Green energy waste. The Tennessee Valley Authority with a touchy, feely twist. Al Gore, administrator?
• Neverending War in Asia. That’ll lick unemployment for good!