MikeM

Financial Stocks' Future Earnings Estimates: Is This a Joke?

In my view, most people berating the big money center banks don't know what they're talking about. There's a big difference between writing down the value of an asset (along with the hit on earnings) and actually having the asset not be eventually worth more than that. The big banks are taking big hits on these assets just in case the worst happens. But the worst is not likely. So longer term, some of these write offs will be write ups and add back to earnings.

Frankly I don't understand the hate for big business that some people have. The people in those companies why are so easily labeled liars, thieves, and worse. Fact is, they are doing a great service lending money to farmers to buy equipment, supplies, and plant crops, for people to buy houses, etc. You sit next to them in church on sunday.

I am not a banker. However, I have received a few loans over my life that I do appreciate getting. They made things possible. I'm tempted to print up a rather contrarian bumper sticker that would say: "Kiss Your Loan Officer".