tk77mann

Nobody Knows What Bank Stocks Are Really Worth

Great article and conclusion, but I think bank stocks are even more unpredictable than just their current earnings statements. Lots of banks (like NCC a year ago) said they were in great shape, their dividends were secure, they were buying back shares, etc. but the assets on their books turned out to be significantly toxic.

If we can not determine the quality of their balance sheets, we can not reasonably predict their earnings, and their cash flows are impossible to use for valuation, banks as an investment class are an unpredictable crap shoot.

How the Government Forced BofA to Marry Merrill Lynch

No need for a federal ban on housing starts. The economy has done that already. What is needed is stability in the housing market. Lower interest rates, fewer job losses (and therefore more housing demand), and banks able to loan money will together start the process of absorbing the oversupply of housing.