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: ajtj99 who wrote (195697)	4/9/2009 5:20:29 PM
From: rich evans	Read Replies (2) \| Respond to of 306849

I think the markets positive move today and the Wells Fargo and other bank stock price increases reflect a turn around in their business as to mortgages orginated and loans made. In other words, people think Wells can earn their way out of their bad loan provisions. They took 4.6 bill in this quarter for loan loss reserves. If they continue to earn over 9 bill before taxes and loan loss provisions, they will earn their way out of their bad loans/ balance sheet. It will take some time but earnings are the key to survival for all these banks including Freddie and Fannie. They are earning between them almost 60bill a year before taxes. Eventually they will earn back all their losses of over 300mill and the US conservatorship will end. In the meantime they don't need capital as they have the US Government to fund everything. Rich