22 replies to this topic

[SemiBizz]

Yep, go ahead and buy those banks and brokers, what do you have to lose.... they are as safe as a money market fund...

[ogm]

Yep, go ahead and buy those banks and brokers, what do you have to lose.... they are as safe as a money market fund...

I'm yet to be dissapointed with my trade on banks....

So whats your grand plan ? Stuff the money under the mattress ? Or better yet.. buy gold and stuff gold under the mattress ?

Talk about fear

Edited by ogm, 19 August 2007 - 09:24 PM.

[Iblayz]

Remember the capital with most banks are not that big. CFC already negative when mortgage portfolio is priced to market. Bearstern also only has $10 to $20 billion in capital. 20% drop in portfolio price will bankrupt them all. If real estate drops 50% overall, all US banks will go under including GSEs.

Now we really get somewhere. The truth is, we are at risk right here due to the nation's debt and the leverage in the financial system. And if the above happens none of this back and forth will matter. And it won't matter if you have your money in a brokerage account, a money market fund, a savings account, a checking account, or if you've taken delivery on your stocks. It's a house of cards....the walls are made of mirrors and the doors are covered by smoke. It wouldn't take much of a run on banks at all by a panicked public to make things go.....poof. Do you really think that all of us really have CASH IN THE BANK? Could we all take it out? Where is that cash? Do you think that the Arabs and the Chinese would loan us some dollars so we could "cash out"? I have two accounts (brokerage) held by JPM. Do you think I am comfortable with that KNOWING about their massive derivative exposure? But what good does it do to move it? If JPM goes under....nobody else is going to have any cash anyway.