Pent up demand

Let's Hurt the American Financial Services Industry

Shrinking the financial sector is good. The problem is that the only growth sector that seems to be stepping into that gap is the public sector. That is not a recipe for prosperity either.

Where's the Nationalization Debate?

Just wait for the next leg down for financials and the nationalization talk will be back on the table. There is another wave of mortgage defaults ready to break and consumer credit is deteriorating rapidly. The government types will lose patience with maintaining a veneer of private enterprise. I bet the only thing holding them back now is their fear of screwing up.

Thinking the Impossible: Could Bank of America Go to Zero?

"The simple fact is the government currently won't let any big bank go belly up no matter how bad it is. If the policy was different Citibank would not be around any more. "

Irrelevant to shareholders. The author clearly states that there is a massive risk of dilution for shareholders. No, Bank of America will not go out of business. But for common shareholders I think there is a good chance they will be wiped out. I agree with him, which is why I have already unloaded my remaining BAC after the most recent disclosures about TARP funds.

If you are a US citizen, you already have much more exposure to financials than you want through the government. Why buy more in your personal portfolio?

Number of U.S. Homes With Negative Equity Is Stunning

"The losses the banks will take holding the real estate will far outpace whatever diminished losses they take on a reworked mortgage."

Says you. Banks need cashflow like any other business. I find it doubtful that they can hope to restructure so many loans without starving for cash. As Jolly_Rancher said, anyway you want to slice it, a lot of the banks are dead men walking. Restructuring only changes rate at which they bleed out.

I agree that many defaulters are going to stay in "their" homes if only because there will be nobody from the bank/sheriff etc. to kick them out. But they will be reduced to being de facto squatters with no ability to show clear title or borrow against the property. Just like a lot of third world countries. Good job America!

Time to Short Financial Stocks - Starting with BofA

What a shoddy article. You talk as if BAC is a pure-play to short the housing fiasco. If the deal even goes through, they will be buying CFC at a big discount. There are plenty of more likely suspects in the financial sector. What's a matter, did bad old BAC raise your interest rate?

Proposals for a Depreciating Housing Environment

Banks are not foreclosing on people who make the payments. If the value of the collateral deteriorates that is just part of the risk of being a banker. And Mike B., holders of mortgages are not happy if the nominal value of the asset goes up through (unanticipated) inflation. They want a real yield on their investment. Federal Reserve funny money is not a real yield.

Hell, brokerbila, I like your plan. But why not cut out the middlemen? Just have the Feds buy up all the troubled properties, and then they can allow citizens to live in them rent free. We all pay taxes, right? I'm sure we can figure out an equitable way to assign party members, I mean citizens, to housing units.