The question of the day is 'Are banks a good buy?'The answer...

The question of the day is 'Are banks a good buy?'The answer as well as the thought of the day comes from John Succo at Minyanville. Professor Succo talks about Deutsche Bank but the implication are much further reaching. Let's tune in. Succo: Deutsche Bank (DB) is an important tell...DB lost money in their capital markets division. Simply put, they lost money 'trading.' They are not alone. Banks and dealers are having trouble making money the old fashioned way, so they are taking much more risk trading these days. I mentioned last week that while regional banks do not have near the ability to do this, large money center banks and dealers often increase their risk to make money just at the wrong time. DB lost money doing it. Many other banks like JPM and BAC have so far been doing OK, trading (at least what they have admitted to for these banks can remark their loans and derivatives for a while to make things look good), but it does not mean they have not increased their risk. While DB lost money this time, these other banks might next time. Risks have increased significantly in owning bank stocks. Mish: What we do know (if indeed we know anything at all) is what Deutsche Bank is willing to admit.