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I'll Pass on These Capital Issues

First the "big ones" (banks) such as Bank of America and Citigroup were doing it--issuing new shares. Now it has spread to smaller ones, Fifth Third, and Huntingdon Capital. I'll pass on these public offerings thank you.

Bank stocks have rebounded sharply in price in the past two or three months, when it became clear that the American government wouldn't let them go out of business. That doesn't change the fact that many of them were at, or near, insolvency.

A greater supply of stock puts a damper of further upward price movement. So, too, will a growing realization that banks needed the capital infusion just to run in place, rather than to make forward progress.

When I take a bet, I'm usually hoping that "something" (which is depressing the stock price) will NOT happen. It's much dicier to hope that something WILL happen.