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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Bonnie Bear who wrote (16780)	4/17/1998 7:02:00 PM
From: Simon	Read Replies (1) \| Respond to of 94695

I made a typo the other day on Travelers and typed TR. Geeez what a winner. Just buy it and hold it. Talked to a friend who is a broker and he said he probably would get laughed out of the office if he recommended that. He is now looking at everything in the sector. :-)

To: Bonnie Bear who wrote (16780)	4/17/1998 9:03:00 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 94695

BB, banks are the most vulnerable in a down cycle. People just forget the reserves are needed for loans which have their collateral shrinking. Those reserves go straight to the bottom line!! 2% to 3% of their assets and voala no earnings!! Lately the profits were great because no reserves were required and many banks manipulated reserves improvement to have a steady stream of earnings. From my consulting work I know quite well how the banks do it. In bad times they will even reclasify loans to questionable types who comitted various banking crimes, only if they pay regulary and the banks cheat the FDIC. That is a fact!! Just 6 years ago the reserves were sinking the banking industry!! BWDIK HAim