CT Programmer

Buying a Buffett Portfolio

Wells Fargo will gain share of depositors, which historically for banks have been the cheapest source of money that they then re-invest in loans and such. Depositors are significantly cheaper than borrowing in the money markets. All banks are hurt in varying degrees by the financial and mortgage crisis, but not all banks will emerge from it in the same proportion of the pie as going in. However, having said that, I think financials have rallied lately but are due for another hit when all these auto and credit card loans start defaulting at much higher rates, as well as the commercial real estate market (which has been barely treading water) starts to collapse like the housing market did. It ain't over yet.