Bank United just failed, virtually ALL banks that touched the pay option arm lending have failed or suffered a run, Wamu Wachovia BKUNA Indymac and I think a few others Is Wells really immune to concerns that portfolio will blowup and people will begin to withdraw their money?I know management says they already wrote down those assets but management word might not be worth much if the S&P is tanking a lot and the administration is still not explicitly guaranteeing the big banks...
Wfc has been able to play houdini for 1 1/2 years. For instance how have they been able to avoid the home equity and mortgage disaster of california with prices down 40% min? As if it were a miracle they've had little in the way of loses from there $120 bil home equity portfolio and much tied to california. Much smells but as of yet the street believes them.Plus huge fees for banks this qtr so earnings will rock. i'd wait till late july to short.
It's amazing what banks can do with their accounting when they know the regulators will allow them (or even encourage them) to do it.
All they really did was re-classify their loans. WFC was extremely busy in subprime lending when it was hot.
Who cares??? If you've been trying to "correctly" identify and trade off the fundamentals in this sector of the market you've been absolutely CRUSHED. Why anyone would not be trading TECHNICALLY off of price, is absolutely beyond me.
Correct. Who cares when government is sponsoring all this "magic" ? Magically all level 3 assets dissapeared overnight, not one single media pundit even mentioning anymore "SIV", "CDO", "level 3", "mark to market"...LOL ! We live in Magic Mountain and Geithner is playing with his magic stick !
Oh so there's only one way to trade? Did John Paulson go long credit default swaps based on technicals?
It's worrisome to know this 'magic' won't last forever. The gov's house of cards will eventually fall and on that day we'll have an economy in the shitter with nobody to bail us out.
So we are waiting for the "culmination point" ? The culminating point in military strategy is the point at which a military force no longer is able to perform its operations. On the offensive, the culminating point marks the time when the attacking force can no longer continue its advance, be it because of supply problems, the opposing force, or the need for rest. The task of the attacker is to complete its objectives before the culminating point is reached. The task of the defender on the other hand, is to bring the attacking force to its culminating point before its objectives are completed. The concept of a culminating point was formulated by the Prussian military theorist Carl von Clausewitz in his book On War published in 1832.
Prussia? Geithner might rather take a hint from Nazi military history as generals got the order from headquarters to "fight to the last man and bullet" and then commit suicide