madasiwannabe

What Happened to the Fed's $1.816 Trillion Lifeline?

The damage was already done to both of these guys months ago. The shorts were already bought into both WB and WM long before the ban. What finally brought them down was long selling due to lack of confidence and fear.

It wasn't a secret that both of these guys were bloated with loan portfolio's in the two hardest hit areas, Florida and California. Once WM fell, it was only a matter of time before WB followed.

Wachovia-Golden West Transaction: A Disaster Without Peer

Shocking how all of these companies got in trouble. What's more shocking is how Wamu and Wachovia were given away for a song. Bank of America knows the 30 Billion they wrote down on purchase will be turned around and sold when the bill is passed. That means BAC made a 30 Billion profit for their trouble. Same with Citi. It's a shame the investors and shareholders got left holding the bag.

Stunning Reversals: Is This a Market or a Casino?

This is an " I told you so" day. The market realized the bailout was BS and nothing really changed (except GSE investors got scalped and the taxpayers got the bill). The banks still have $7 Trillion worth of toxic CDO's that are not covered by the GSE bailout, LEH & WM are still in denial, Uncle Sam has maxed out the credit cards and no one is buying treasuries, the rising dollar is killing exports (which was the only economy strength) and dismal financial quarterlies are still coming out this week.

Welcome back to reality.

Don't Believe the Lies: Ride the Bank Stocks Bull

Your right jonsager, but what can we do? If the market turns bull, the banks recover and both the borrowers and the banks get absolution for their sins. If liquidity doesn't return, they will continue to raise rates to cover inceasing writedowns and the irresponsible borrowers still get absolution at our expense. Unfortunately, if the banks continue to contract, more responsible homeowners will start joining the growing ranks of the irresponsible. There's really no good way out and the lesser evil option is propping the financials up.

Greenspin's BS about socializing losses not being fair is crap. Losses always have been and always will be socialized, either directly through bailouts or indirectly through increased prices. The companies sure don't eat distribution costs increases if gas prices go up, and now that they are going back down, I'm not holding my breath wating for my share of the profits.

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.

Don't Believe the Lies: Ride the Bank Stocks Bull

I think you used the worst examples. Some of the banks will be able to recover, but others with huge creative portfolio's will IMHO not make it. Don't look at the for sale sign, go ask what bank holds the note. WM has the largest percentage of sub-prime 2/28's, ARM's and interest only ARM's in the most distressed areas and WB is not far behind. Rolling delinquency requirements from 90 days to 1 year overdue only prolongs the inevitable.

Can't wait to see the look on BAC's face when they find out BAC wasn't on Mozilo's "Friend of Anthony" list. Countrywide was passing out loans like Jim Carrey on "Dumb and Dumber". BAC got the breifcase full of IOU's.

The downward pressure on the GSE's has caused a financial's wide liquidity crisis that (until the Greenspan/PIMCO led, CNBC facilitated beat down) didn't exist. Unlike banks, the only way for the GSE's to make money is to sell more mortgages. Contraction of the GSE's will do nothing but decrease critical liquidity and accelerate the meltdown.

We are on a razors edge and without some good news and bullish confidence in the financial market, we are going down the tubes. Based on what I've seen, the financial bulls are nothing more than sheep in bull's clothing so get your swimsuit on and enjoy the ride.