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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Jim McMannis who wrote (69710)9/30/2007 2:52:26 PM
From: mishedlo  Respond to of 116555
 
Bank Balance Sheets and Earnings
globaleconomicanalysis.blogspot.com
When it comes to the S&P financial sector, forget about low PEs. Instead watch balance sheets, loan loss provisions and deteriorating credit quality. Expect a massive migration of “held for sale assets”, particularly non-conforming mortgage assets, into “held for investment” or “loan” categories. The ramifications of the latter cannot be overstated.

Mish