bbzz24

Financials Have Bottomed? Readers Say We're Nuts

To me the biggest problem seems to be that those entities are leveraged to the eyeballs just as the 'consumer' who either way is pumping their profits. Do you expect that to be remedied soon since the 'consumer' is suffering real wage declines and further sinks into debt? Add to this that helicopter Ben prints money like a loose maniac. It will 'support' the prices of troubled assets but everyone will be much poorer to get the wheel spinning in the same old way. Oh, don't you read that BofA, Wachovia are out of the wholesale mortgage business? And there are many other banks that simply can't lend due to the lack of funds. And who is going to buy the MBSs that will be coming forward in the markets knowing that the currency will be debased once 20% haircut is taken. Doesn't this make all foreign buyers (30%) of U.S. mortgages just scared of this crap? It's sounds like bankruptcy for the government is the quicker way out of this mess.