woodchuck

Investing in the Housing Crisis Aftermath: Stock Picks and Pans

256540,

You prompted me to look more closely and now I do have an author name and company to associate with this drivel. I missed it the first time through. Thanks!

Investing in the Housing Crisis Aftermath: Stock Picks and Pans

Someone please tell me it is April Fool's Day. This can't be a serious finance article.

"...with the government offering Frannie and Freddie a bailout, both companies are effectively insured from themselves."
The stockholders would still be wiped out.

"Citigroup has also paid out $18 million in order to settle allegations ...."
$18 million?!?! With write-offs in the billions of dollars the author focuses on an $18 million legal settlement?

"...no end to National City's troubles, and I've got a hunch things will get worse before they get better."
More fascination with potential legal problems that have no bearing on the financial health of National City. With its capital depleted and no prospects of raising more capital a "hunch" things will get worse is a sure bet.

Oh, my god! BAC has actually been "subpoenaed!" This is the metric by which the author declares National City (on the verge of collapse) a better buy than BAC (no rose itself but in better condition than National City).

And now the author's gem of investment wisdom: He recommends MER because its "stock is usually pretty strong." Well so is body odor but I don't recommend it! No mention of billions in write-offs. No mention of additional write offs coming as a result of its "sale" of CDS pools for $.22 on the dollar but the purchaser only put up $.07 on the dollar. No mention of other credit instruments still in MER inventory that might be subject to write offs.

Please! Someone tell me this is a joke! Or at least the beginning of term paper written for the Chulafinee City Community College Remedial Introductory Finance and Auto Body Repair Course. No wonder there is no author's name affixed to this "article."