Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Dale Baker who wrote (30414)	3/25/2008 11:44:08 PM
From: Spekulatius	Read Replies (1) of 78673

C- i'd say it's better to avoid it. No way to tell if this is the bottom or not and i think the next news is more likely bad than good. I don't like the new management either. The thing tC needs is another financial wizard like Pandit. A staid old fashioned banker with credibility would have been better, but i guess this material is in short supply now. I think there are safer plays to bet on the recovery of the financial sector, if you are so inclined. Once the subprime problem is gone (all loans are written off close to zero) there is still the big risk that the problems seep in the much larger sector of prime mortgages. With home prices sinking 10% in 12month there is likely bombs in the sector that i have not seen going off yet - all mortgages with vintages of 2004 or later and <20% downpayment are potentially under water. in my opinion a mortgage that is under water is not much better than subprime. if anything there will be a nice cottage industry of layers and mortgage professionals offering "help" to all those unlucky homeowners whose equity has eroded away due to lower housing prices and who now want out. That of course is not a problem specific to C but rather to anybody holding mortgage papers.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next