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ARS Buybacks: Wachovia Follows the Herd

If the GSE's are sneezing, the banks have pneumonia. Billions worth of ARS buybacks added to the loss column of their balance sheets can't be a good thing. Many are already struggling with subprime bloated portfolio's and because the property values have fallen against an originated 125% LTV combined mortgage, the housing bill is not going to help. Rolling deliquency filings from 3 months to 12 only prolongs the inevitable.

Soon to add to the problem is the news that most are looking at the house of creditcards coming down. If I was going to pick a winning horse in the financials I would go with Freddie and Fannie. They seem like they are high risk, but truth is, if they collapse, a black hole will form and suck the rest down anyways.