Investa Mania

Approaching Zero

Well, just because there is "easy money" does not mean you should leverage yourself 60 times.

That's the firm's/executive/inves... decision.


period.

IBM: Reassurance from Big Blue

Any at least someone knows what they are doing in this economy

Cheers

Now's the Time to Buy Bank Stocks

This post is pure lunacy as many people have expressed in the comments.

Jack, has the list of 110 or so regional banks that are in trouble right now not reached you ??? Do you know how much "toxic waste" they are all holding right now?

This is not just your casual bear market Jack, the market is changing itself. The financials and the banks are not just going to jump up again. Easy credit will no longer be available in the next few years as it was before, lending will be reduced....this all means less fees etc = less profits for all these banks. Moral of the story is that even if there was to be a rebound, the growth would be small in the sector.

If you're looking to buy, stay away from the financials...if anything, stay away from the equities market because the rocky road has just started.

Buying anything on banks right now is insanity. After 2 weeks of all major investment banks going down the drain, and banks globally being saved by diff govs....you're saying, alright, lets buy?

Follow the money...and invest there....that is....buy T-BILLS and don't lose your money

Fannie and Freddie Did Not Cause This Crisis

Lots of different minor facts trying to account for the crisis in the comments....

even such thuings as ...Obama trying to give affordable housing to minorities? ....really ...even if it was millions in loans....you think that created the problem?

I believe the main problem was the and is the mis-pricing of the mortgage-backed securities/derivatives... The risk was not properly priced...because if it was, everyone would have known what they were getting themselves into. Hence, what it comes down to, is that the lack of regulation and a standard models to price these securities is what created the problem.

ITS LIKE PRICING OPTIONS WITH OUT THE BLACK - SCHOLES OPTIONS PRICING MODEL...it would just be a big mess...which is exactly what happened to the mortgage securities. When someone is able to come up with a standard model, things will get much better.

36 Opportunities for the Beginning of the Bull

Bill, I agree with most of the things you have said, yet we must keep some things in mind that will be different in this new era.

Even when people start unloading their cash that has been accumulating, the capital markets will not be the same. Credit will not be as available, which will change the playing field in the market.
We must let everyone know that capital-intensive driven sectors will probably be hurt in the next few years. Hence, we must find companies who are able to accumulate cash to finance their projects and operations.

The era of easy credit is done.

History Suggests the Financial Bottom May Be Near

A few things.

First, the accounting rules should be changed and banks should not have to mark down their assets quartely ??? That's insane! The very problem of this crisis and the reason why nobody can call a bottom is because nobody knows who is holding all this toxic waster a.k.a. junk mortgage derivatives/bonds etc. Now you would want Lehman (or any other institution) to wait the WHOLE year to tell us that they had 30 Billion in Toxic garbage?

The reason why this crisis is happening is because OF LACK OF REGULATION on mortgage backed securities, therefore, if anything, they should mark everything every day.

And as far as History goes, I believe this is a new era.

The early 90' was followed by the tech bubble which we all know the end of that.

Today's world is much different.
*Huge investment banks are failing.
*There is a list of 127 regional banks that are lined up for problems.
*US debt has reached a new level.
*weak dollar
*Wars being fought by the US
*Foreclosures everyday by the thousands

....I doubt that your 200% rally in the financials are to come anytime soon....


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