So everything is fine? - 11:14 AM

See this? Look at it very carefully. As we speak, the talking head cheerleaders and their guest on CNBC are telling us how difficult the "stress tests" on the banks were, and how good the unemployment numbers are. Yada, yada, yada. This people is utter BS! See that chart, that will be the next tsunami of debt that will find it's way to the banks balance sheets. Oh, but the scam just gets better. How you ask? Commercial Real Estate, or as we will call it going forward CRE. It has been reported, which is part of the scam, the large 19 banks that were stress tested do not have large exposure to CRE. Credit cards maybe (See Captial One Finance - COF) for that (which is another story in and of itself). The smaller regional banks, some of which do have large exposure (FITB for one)to CRE, will see this problem develop as we move into summer. Some of the large CRE - REIT's have already issued shares to raise capital. Why? Because they are losing money. One of the largest, General Growth Properties has already put some properties into bankruptcy. Simon Property Group has already rolled out a stock offering, and will be doing another. See tickers GGP & SPG respectively. It's not just them, it's many in the CRE market. The information is there, read it, CNBC won't be telling you this anytime soon. Actually the perma bull Bob Pisoni told us a couple of weeks ago how there was heavy buying in REITs. He just didn't tell us why. Imagine that. I'm going to speculate here, which I don't like to do, but here's what I think will happen. The larger banks, now that their stock price is up, even talking about paying back the TARP money, will begin to acquire some of the smaller banks. Everyone knows (if you don't watch CNBC)the CRE problem is on the way. If the smaller regional banks that have exposure to CRE are gobbled up by the larger ones - nudge, nudge, wink, wink - the ones who have already received TARP money? The CRE problem is huge (some say it's already baked in)as well as the rest of the residential (still plenty of problems there as well)problems that await. The government has already said none of the 19 will be allowed to fail. There is no way the smaller banks can absorb the losses of these problems without government help. This is a backdoor way to bailout the CRE along with residential - through the banks that already have their hands in the governments pockets. Is Fifth Third up today 44 percent because they have a good balance sheet, or do people think they will be taken over. Pure speculation, I want to clarify that. Even without my speculation, the above chart speaks for itself.