Many investors are missing the reality of the latest bank earnings reports, dressed up to seemingly appear a lot more positive than negative because of  complex accounting standards and rules, according to DICK BOVE, chief financial strategist at ODEON CAPITAL GROUP. Banks are overstating the value of their assets in a period of rising interest rates. As markets respond positively in one direction, BOVE says many investors do not realize banks are earning less than it appears. "All the [bank] companies I have looked at are down [in terms of] net worth," BOVE says. He adds that many investors are ignoring the fact that money flows out of banks have exceeded inward flows. Loan losses have soared, rising interest rates causing the value of bank assets to plunge, according to BOVE. Pre-tax earnings are down for the year while net worth, as noted, has declined.

Also in this CONVERSATION is the latest flare up in the British political establishment with a rub for the UK economy. UK Prime Minister LIZ TRUSS fires her finance minister, KWASI KWARTENG, replacing him with JEREMY HUNT. HUNT then immediately rips up her Conservative party's ambitious tax cut and spending plan. MAT VAN ALSTYNE, ODEON co-founder and managing partner, and JOHN AIDAN BYRNE look at what ails the UK and Europe generally.

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