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VVance
2489 Posts |
 Posted - 07/22/2008 : 2:26:14 PM
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With this upside down logic, Washington Mutual shares should have a huge day tomorrow!
AP
Investors question financial sector rebound
Tuesday July 22, 5:08 pm ET
By Ieva M. Augstums, AP Business Writer
After huge loss at Wachovia, market questions recovery from year-old credit crisis
CHARLOTTE, N.C. (AP) -- A surprisingly large second-quarter loss at Wachovia Corp. has quickly revived Wall Street's concerns that the financial sector still has a long way to go before it recovers from the year-old credit crisis.
Investors got a cold wake-up call when Wachovia, the nation's fourth-largest bank, racked up an $8.86 billion loss because of charges and reserves for bad mortgage loans. The Charlotte-based bank on Tuesday also cut its dividend for the second time this year and eliminated 10,750 positions.
After markets closed, Washington Mutual Inc. delivered a further jolt. It swung to a $3.33 billion loss in the second quarter as it boosted its loan loss reserve to more than $8 billion, betting on more soured mortgages.
http://biz.yahoo.com/ap/080722/earns_banks.html?.v=6 |
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dkendall1979
10261 Posts |
Posted - 07/22/2008 : 2:27:50 PM
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| It's official! We're in Bizzarro World! |
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VVance
2489 Posts |
Posted - 07/22/2008 : 3:09:07 PM
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I normally wouldn't care what the stock of a sector was doing. It just seems that this rally in the financials is the basis for the entire stock market to rally, leading to money leaving mbs and bonds.
I have enough challenges as it is and higher rates is making things even more difficult. |
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VVance
2489 Posts |
Posted - 07/22/2008 : 3:24:25 PM
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The best explanation I've read so far...
http://mrmortgage.ml-implode.com/ |
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mgraham224
1008 Posts |
Posted - 07/22/2008 : 3:28:29 PM
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Here's a better, shorter explanation without a dead link to copy and paste.
Expectations (analyst estimates, economist consensus, laypersons' predictions) are all priced into the current dollar price of a security. So this morning's wachovia price reflected expectations of a bleaker picture than was, in fact, revealed today. Simple as that... |
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