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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Peter V who wrote (115650)	4/8/2008 3:20:44 PM
From: Peter V	Respond to of 306849

WaMu lines up funding; upgrade for brokers, asset managers . Marketwatch - April 08, 2008 2:36 PM ET Related Quotes Symbol Last Chg WM Trade 11.73 -1.42 UBS Trade 34.71 -0.17 MER Trade 46.53 -1.02 MS Trade 47.66 -0.43 FNM Trade 29.05 -0.80 FRE Trade 25.50 -1.10 LEH Trade 43.68 -0.92 FMD Trade 4.89 -2.81 COF Trade 53.24 +0.18 . note the one stock that is higher in this list, COF is helium-filled crap Real time quote. BOSTON (MarketWatch) -- Shares of financials stocks traded broadly lower Tuesday afternoon in a session highlighted by Washington Mutual Inc. lining up a $7 billion capital infusion as it seeks to ride out turmoil in the U.S. mortgage market. Meanwhile, Goldman Sachs raised its outlook on some segments of the financial sector that have been hit by lingering credit fears. Shares of Washington Mutual (WM) lost more than 9% at last check, wiping out Monday gains tied to a report that the company was in talks to raise $5 billion in capital. The Seattle-based banking giant's balance sheet has been savaged by a push into subprime mortgages, necessitating the move to raise capital. Also Tuesday, Washington Mutual said it would further cut its dividend and close its wholesale-mortgage origination business. The founding partner of Texas Pacific Group, the private-equity firm that's leading the investor group providing the capital, will join WaMu's board. See full story. As for its financial-sector call, Goldman Sachs said: "We believe that it is too early to overweight U.S. financials as a whole." However, they also told clients that "investors can benefit by distinguishing 'exaggerated fears' from legitimate, ongoing problems." Accordingly, the analysts said they were "upgrading our view on asset managers and brokers" while at the same time staying cautious on prospects for regional banks, mortgage and specialty finance and real estate investment trusts. See Ratings Game. In another analyst upgrade, Morgan Stanley raised troubled Swiss banking giant UBS (UBS) to equal-weight from underweight, saying much of the bad news it was concerned about is now on the table. "We are not suggesting the challenges are not still profound," they warned, however. Shares of Merrill Lynch & Co. (MER) were lower. Chief Executive John Thain said the company will likely continue to be pressured by write-downs, but he doesn't believe it will need to raise additional capital. Read more. Investors also kept watch on shares of Morgan Stanley (MS) as the company held its annual shareholder meeting. CEO John Mack and all other members of the board of directors were re-elected by shareholders Tuesday by a wide margin, despite opposition from some pension funds dissatisfied with the firm's performance. Meanwhile, shares of Fannie Mae (FNM) and Freddie Mac (FRE) were off even though Lehman Brothers (LEH) upgraded the mortgage giants to overweight from equal weight, based on expectations for a recovery in revenue growth. After recent meetings with both companies, Lehman analysts think government-sponsored enterprises such as Fannie and Freddie have "reached an important inflection point." The upgrades reflect political standing, ability to deploy capital and high-return investment options -- all of which, Lehman said, have improved "significantly" in recent weeks. The stocks should gradually return to historical valuations once credit costs peak in 2009, Lehman said. "Prior to that the stocks should gradually outperform on steady market share gains and high returns on new business, which is sustainable while credit costs escalate." Shares of First Marblehead Corp. (FMD) dropped nearly 40%, plunging as the student-loan company said it's looking for a new guarantor after one of its partners filed for bankruptcy. See full story. Capital One Financial Corp. (COF) will cut about 750 jobs in its U.K. division as part of an ongoing cost-cutting effort, The Wall Street Journal reported on its Web site Tuesday. Most of the jobs will be cut from Nottingham, England, and involve call center, account servicing and support positions, the newspaper said. The cuts represent about 40% of the Capital One's 2,000 jobs in the U.K. Most will be outsourced to India and other countries, the Journal said, citing the company. Separately, the total potential global losses from the credit crunch could top $945 billion over the next two years, the International Monetary Fund estimated on Tuesday, suggesting more pain for the financial sector and more headaches for governments struggling to contain the crisis. .

To: Peter V who wrote (115650)	4/8/2008 3:41:51 PM
From: Smiling Bob	Read Replies (1) \| Respond to of 306849

Haven't the Fed and EVERY official and analyst paraded around been dismissing a recession as unlikely? At worst and only recently, some have leaned towards a quick mention of a remote possibility of a mild and short lived downturn(can't say the R word) Now it's revealed the top cats fear a deep and prolonged recession and mkt doesn't budge? These minutes hint at dissension, uncertainty, and the beginnings of panic within the bunch. That alone should sent shock waves through the market. But here we are again, hanging in there, heading for another propped up close despite the Fed's quiver being nearly empty and a den of hungry bears barreling towards them. Half the stocks I'm watching are well in the green.