Long article that came out after hours today. To sum it up, the guy interviewed was named best on the street for his coverage. He's a CFA ex Federal Reserve Bank Examiner. Some highlights of the article is he sais Wells Fargo is a sell, calling it to rich at the current prices, trading at 3 times it's book value with unrecognized losses. He states 1,000 banks will fail in the next 2 years. On 5:05 pm EDT, Wednesday October 7, 2009 http://finance.yahoo.com/news/Best-On-The-Street-Financial-twst-1295445605.html?x=0&.v=1 Thoughts?
with all the attention on the major banks that really are too big to fail, because they represent and handle significant portions of our national settlements system, then are there really over 1,000 banks out there, all those small local and regional banks, then whatever made them think they could weather a storm if their customer base has already withered and dried up, and their corporate customer base has fired their staffs, and had their manufacturing products offshored as such? isn't it to be expected?, this outcome?
If you're a trader, you shouldn't pay attention to either the cheerleaders nor nay sayers for anything. TONS of analysts said "they wouldn't touch banks" during this rebound... and the banks virtually lead the parade with nearly 200% gain. Are bank stocks going to crap? Don't know... and they could double again before they do.