Gaucho

Will Downey Financial Go To Zero?

Downey is already a Zombie. They like most banks try and paint a rosy picture for their balance sheets. If their balance sheet were market to real market they are already a nonviable entity. The worst of the mortgage crisis is just beginning and will last through the middle of next year. After that who knows how long it will continue. As an investor I would not hold Downey in my portfolio. There are investors that think that the fed will step in. This will not happen since Downy is insignificant in the mortgage industry. They think that a white knight will step in. This will not happen since white knights are rare and this damsel in distress is truly ugly in the balance sheets.