Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (30264)	7/1/2008 10:38:01 PM
From: Spekulatius	Respond to of 78742

CIT selling their home lending business - 2B$ loss biz.yahoo.com Plays out just about how I expected. With that millstone now gone, the question is if their existing business holds up. They credit is trash which means their cost of capital is very high., which means it's not going to be profitable. They need to find a partner with lot's of cash. It seems obvious that they should give WEB a call.he will ask for an arm and a leg but I think it would be OK for them to cave in - otherwise i can see them ailing and slowly bleeding of the business or get into the situation where they run out of liquidity in a year or so.