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    • National City Corp. Story Unlikely to Have Happy Ending [view article]
      Please keep in mind that when a mortgage goes into default (mainly past due for 90 days) THE ENTIRE MORTGAGE MUST BE WRITTEN OFF!! This only applies to residential mortgages, not commercial. So in effect, these banks, like NCC, WB, C, UBS, BofA, WAMU, WFC, Chase, are writing off 100% of these mortgages. When the mortgage goes bad, the lien holder has the right to foreclose. Some value will be realized when the home is finally sold; 30, 40, 50, 60%. A lot of these write downs will come back as gains on their income statement.

      It is my opinion that huge declines in one particular segment/industry happens once in a blue moon. This isn't steel industry. This isn’t the manufacturing sector. This isn't K-Mart, LTV Steel, Enron, or any other public company that could/would/has fail/failed. People will always be working. The need for a financial institution will always be there, whether a deposit, credit card, or loan. The institutions aren’t going to China.

      Smart people are buying in now. Buy and shut the computer down. Shut the TV off; go read a book, play with your kids or grandchildren. The market is there for the long term! If you want a quick fix, go to Vegas and place 1/2 of what you own on “9” and the other half on “red.” Again, this is my opinion. I am just long on financials.

      This to shall pass.
      Apr 19 12:06 AM
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