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.

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!

Subprime Write-Downs More Than 50% Done? Write-Ups Coming Next?

Tony Soprano has been all over this site pumping stocks. Yeah, a negative consensus is a buy signal - except when it isn't.

This thing has been spun from day one as a subprime problem. That is what they are feeding the masses. As freedomrenter says, who cares if they wrote the subprime down to zero. Only after the Alt-A, option-ARM, and HELOC losses been counted will I think about becoming a buyer. In the meantime I stay in cash and watch my insurance policy (commodities) pay off, and keep my powder dry.