WB is gone. The last big failure for a while ?

Looks like they are sweeping the last "obvious" troubled bank under the rug. There are no other obvious troubled banks in public view. Except maybe for NCC, but its not as big as WB. Now that AIG, WM, WB, BSC, MER, LEH are "bailed out" .... and the congress is about to pass the package .. we may get some sort of a relief from bad news in financials for a while. Of course something else will most likely fail down the road, but we might be near some exhaustion point. I'm NOT bullish , but I'm LESS BEARISH.

meredith whitney was just on CNBC. she has been excellent and right, full of facts. she pointed out the CDO low tranche assumptions for these major banks are quite different. CITI and WELLS, for instance, have assumptions in the 20%-ish range for home price declines. this makes a huge difference; meredith says she thinks 40% is more realisitc. if that is so, LOOK OUT BELOW FOR CITI AND WELLS! on the other hand, if the plan passes - and it is much more important than ever - i expect paulson to buy preferred stock in banks to try to stop the runs. as to the plan: i have NOT HEARD ONE COMMENTATOR IN FAVOR! i wonder what the talk radio shows will be like today. also, the fact that congress will be out on tuesday for yom kippur is just another weird part of this perfect storm. that is more time to rattle the senators.

Edited by humble1, 29 September 2008 - 07:51 AM.