Augustus

What CIT's Troubles Really Mean

The reason that all of these borrowers are with CIt is that the local bank won't "bank" them. A good bit of that is because the bankers are lazy and don't want to have to really understand a business. But if the operator has 15 operations in five states then the local bank isn't really a good candidate anyway. Now in a downturn all businesses have cash problems which backs up on their lenders. Sure, CIT is suffering. But I would much prefer saving CIT which WILL finance a small business operation that BAC which is a national leach. What would the CIT P&L have looked like if they had been financed with $45 Billion at 1.5% as GE Credit has been? We really are seeing how the govt. programs are playing out.

S&P 500 Buy and Sell Ratings

Regions Financial is the Bank that Michael Shedlock recommended. It is the only buy recommendation that I know he has made since becomming a registered advisor. So much for that operation. It must be about as great as his economic nonsense.