Mr Mortgage

Promising Regional Banks For Patient Investors - Barron's

Banks are a mess with asset valuations represented on quarterly reports nowhere near their true valuations. I would agree with your analysis if the banks were reporting the true value of their assets. The problem with basing an analysis upon NEW lending is they still have to clean upon the trillions in bad loans before they will realize any upside from new. This runs across all assets classes. Remember, we are in an asset re-valuation period and the leverage comes out of the system. New loans pale in comparison to highly leveraged bad deals currently falling apart.

Ten Comments on Housing

Good story but housing prices will fall further that you suspect, especially in jumbo bubble states like CA. Since we have lost all the exotic programs and are back to pre 1990's mortgage lending, you have to apply historic prices multiples and the best is the 100-year 3-4 time household income. In CA, were are still sitting at 7-10 times household income in most zip codes.