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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (52363)	9/12/2013 11:56:24 AM
From: E_K_S	Respond to of 78753

Re: AMBC and many of the banks including the Too Big To Fail Banks Their financials to me are still not very transparent. This is especially true regarding their "quality" of earnings. Many of these banks are reporting increasing earnings but most of that is due to the reduction of amounts set aside for bad loans as they mark up their real estate values. It's just a shell game taking money from one pot and calling that earnings . . . I only have a small investment in one regional bank that never used the TARP fund and actually bought FDIC loans for $0.60 on the dollar. That is/was NYCB. They have also paid their dividend every quarter but still have not recovered to the pre 2007 highs. Maybe a better bet is to look at some of those insurance companies that Buffet is buying into (ie corporate insurance). Even that group is hard for me to understand when I look at their holdings and exposure. Finally, GE has mentioned they are looking at spinning off their financial group. I currently own some very low cost GE shares and may add to my shares to the new company once their spin off their financial group. Just some of my ideas that the perceived value in the Banks may in fact not really be there. Too Big To Fail Banks Will Fail Again Investing in this Sector reminds me of this common card trick . . . youtu.be EKS