Bababooie

Big Stocks Under a Buck

The TMA shareholders took a chance with the financial community. Sub-prime loans were the cause of the down fall. The inability to provide loans (services) is why investors are running away from TMA. The product for TMA is money, and without modney there is no viable businesss model. You can't get something for nothing. The current financial market is an echo of the S&L debacle years ago. The government made the mistake of letting Lehman Brothers fail. That failure sent a signal of no confidence to public in general. Lehman Brothers assets were quickly scooped up by rival firms, letting Lehman investors out in the cold. The Financials that are left wont be able to absorb any more "BIG" failures. Hank & Ben got caught flat footed.

Big Stocks Under a Buck

This article would have been better served with the timings of Debt refinancing, and the year over performance of the Companies. I'm pretty sure that there is no financial institution that would let one of their Debtors fail. The credo "You'll never go broke as long as someone owes you money", will be one of the defining factors in the refinance. The forced sale of assets to meet debt obligations that pre-crash were obviously going to be refinanced is insane. With the exception of financials themselves, the business models of the above mentioned companies is not buying magic beans for profit. Look at the financials of any of these companies over the last two years. The trimming of expenses will show up on the balance sheets. Consumer confidence does not have to rise for the companies to survive. The attack plan that is playing out deals with the realistic "NO GROWTH". The Financials are hurting now, due to the ARM interest rates becoming too high for any consumer to be able to pay their mortgage. In the past, the financials counted on those losses to get an easy payday with instant appreciation of housing prices. The economy has been (and always will be) cycical in nature. The company leaders that loose sight of that aspect will also drive their company in the ground. There are always blossoming industries, even in the most dire economic times. The fact that a company can strengthen it's business model during these times, is a telling tale of strong management.