Msrpaul

Financial Stocks to Buy When the Market Reverses

What many don't realize is that this is a credit contraction, and when the write offs are over, we will be in deep recession. That will not be a good environment for banks/brokers, whose balance sheets are in dire straights. I can think of only 2 banks worth a look, Hudson City, and USB. When the dividends are cut on the banks, it will be near time. For the brokers, how are they going to replace all that fee income from M&A and mortgage hustling?

3 Reasons To Be Bullish on the Investment Banks

I think that what you're not counting on is continued consolodation in the brokerage industry. The pace of M&M and mortage backed securitization will never return to its former days, and a lot of deleveraging has to take place. HOmes will return to being homes, not commodities to flip, and they will be financed accordingly. The "house of cards", this time made with bricks and mortar, has a long way to go to regress to the mean. That's bad gor LEH and MER especially, no?