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

To: patron_anejo_por_favor who wrote (133475)	7/13/2008 3:03:03 AM
From: XoFruitCake	Respond to of 306849

"Actually, this doesn't address the fundamental problem, which is that houses are overpriced relative to owner's ability to pay" If your focus is on the housing price, I agree 100%. Housing price won't stop dropping until they go back to the 28-30% income qualification type of mortgage. However, as far as bank balance sheet go, all the banks is going to have a window of opportunity where their stock price will rise because FNE/FRE problem are addressed and their balance sheet become stable (i.e. you don't have this wide gyration of valuation of FNM/FRE pass through security and question about banks capitalization). And the focus for banks will be on how much write off they still have left in their balance sheet? How much capital and at what price they can raise them? And what is their earning power going forward? Monday we will see MTB start reporting earning, and Wednesday will be WFC. I think we will see a wide range of write off and we will get a sense of which bank will make and which one won't.