HedgeTruth

Financials and Retail: Not as Dire as They Seem

drmalaka, you are quite astute and even made me chuckle...

i agree about WM loan quality...horrible...

all these amateurs just think because these stocks are down but not yet ZERO that they must be bargains...

BAC and C are in trouble as well...especially if BAC actually completes the Countrywide deal...

LEH and Bear Stearns are also probably going to bankruptcy heaven...

have you checked CDS prices on BSC lately...oh lordy...

Financials and Retail: Not as Dire as They Seem

philip...perhaps you might be interested to know 2 things that have already occured with regard to any investment in WM...

first Fitch just downgraded the debt ratings on WM as well as WFC and a few others...

and James Cramer has an article up since the close saying WM is going to ZERO...he lists 10 banks that are likely to fail...WM, WFC, NCC and others...

you are crazy to touch any financial...

the mortgage situation is so much worse than you understand...

it was reported today that of all the 2006 sub prime originations that Countrywide did in 2006, 18% NEVER EVEN MADE the first payment...

almost 20% never made 1 payment...

defaults on sub prime will reach 30% by the end of the year...

you perma-bulls are crazy to be looking for value in the financials...