Jase

Wachovia Downgrades AIG, Oppenheimer Downgrades Wachovia [Housing Tracker]

Downgrades are comical. The recent poster child for this mess, Indymac, is up over 300% in one day of trading. Something's brewing over there, it was bad, but not the doomsday scenario that was propogated in the media. I imagine that they will recover at lightning speed as the FDIC has likely found a buyer. It wouldn't surprise me in the least to see their stock price back above $10 within a year.

Banking on Bailouts: How Many IndyMacs Are Out There?

Despite the doomsday talk, IndyMac will come out of this breathing. The FDIC will court a buyer within the next 10 days (they claim they'll do so within 90-days). Their share price will begin climbing back above the $1 mark. The ride up, however, will indeed be a choppy one. They won't backstop Fannie and Freddie and leave IMB to fend for itself, mark my words, IndyMac will breathe again and there is a several hundred percentage upside reward waiting for those with nerves of steel.