Comments on: Despite Writeoffs, Major Banks Made Money In 2007 http://www.fundmasteryblog.com/2008/01/25/despite-writeoffs-major-banks-made-money-in-2007/ Mutual Funds, Investing, Retirement, Economy, Personal Finance Thu, 29 Jul 2010 11:41:05 +0000 http://wordpress.org/?v=2.3.1 By: Albert http://www.fundmasteryblog.com/2008/01/25/despite-writeoffs-major-banks-made-money-in-2007/#comment-513 Albert Sun, 27 Jan 2008 06:31:31 +0000 http://www.fundmasteryblog.com/2008/01/25/despite-writeoffs-major-banks-made-money-in-2007/#comment-513 I am not that worried about the markets now. Most of the bad news are out now. I think that we are in some kind of flat correction. Although in real terms the stock market may not get higher (because the value of the dollar keeps going lower) I would expect a new wave of manic buying during 2008 and 2009. It is a bubble economy, after all. I am not that worried about the markets now. Most of the bad news are out now. I think that we are in some kind of flat correction.
Although in real terms the stock market may not get higher (because the value of the dollar keeps going lower) I would expect a new wave of manic buying during 2008 and 2009. It is a bubble economy, after all.

]]> By: Brad S http://www.fundmasteryblog.com/2008/01/25/despite-writeoffs-major-banks-made-money-in-2007/#comment-506 Brad S Sat, 26 Jan 2008 03:48:18 +0000 http://www.fundmasteryblog.com/2008/01/25/despite-writeoffs-major-banks-made-money-in-2007/#comment-506 Considering that the latest deal President Bush and the House have engineered has FannieMae and FreddieMac upping their limits on loans to $625K, I have to think there would be a selling frenzy of CDOs to those organizations. Thus, the banks' losses may not be that much greater for much longer. Of course, in about two years, we may see a proposal for the taxpayers to provide additional capital to Fannie/Freddie. I'm not so sure I'd want to be a politican proposing that one in 2010. Considering that the latest deal President Bush and the House have engineered has FannieMae and FreddieMac upping their limits on loans to $625K, I have to think there would be a selling frenzy of CDOs to those organizations. Thus, the banks’ losses may not be that much greater for much longer.

Of course, in about two years, we may see a proposal for the taxpayers to provide additional capital to Fannie/Freddie. I’m not so sure I’d want to be a politican proposing that one in 2010.

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