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.

What's a Dollar Worth? More than Citi

They will not be delisted. The rules don't apply anymore. Maybe a market historian could tell us if there has ever been a company with the vaunted single letter ticker symbol trading in the pinks?

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?

Citi: A Sell at $3.00?

Research shows again and again that the analysts are a case of "even a stopped clock is right twice a day". They are a good telltale for where the herd is going if you are a contrarian. That's about it.

I agree with roger maxims. People have this wild notion that
1. stock is beat down
2. no way gov't. will not let them go out of business
3. profit

As roger says, look at when earnings per share go positive. Maybe in 3 to 5 years. In between time, you will get diluted, and/or high-yielding preferred will be issued to make sure that the profits go anywhere but to the rubes in steerage (common stock). If you want to buy a lottery ticket, go pick up some long dated calls on C.

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!

"Pick-a-Pay" Defaults Deepen - Housing Tracker

I agree with you ArnoldCountry that the lenders were crazy to offer those types of mortgages to "normal" buyers. Those mortgages were designed for people with uneven monthly cashflow; people who get paid primarily in large bonuses a few times a year.

But this is what you get when the originator doesn't have to hold the paper. He can tell himself that the customer will refinance in a couple years or sell the place for a profit so that he can sleep at night. Then he pockets his origination fee and moves on to the next guy.