Meredith Whitney has been oh-so-correct about the financial institution meltdown that started in '07 and ended this spring. But now she's pushing it too far, putting BAC's 2010 earnings at .20. $0.20???? That's crazy - it's more like $2.50. I respect her for being loud and correct for so long, but she's very wrong now.....
As for these so-called "toxic" bonds, today's WSJ states they are a problem. CNBC talking heads, of course, are stating they are a problem. Too bad for the talking heads that these bonds are screaming north, given that housing depreciation has stopped. How can these people not know this? And why should these banks sell these bonds when many are not even unfairly valued anymore? Why not hold on?
Remember, 2005-2007 are the real problems. Home-equity bonds should be valued at zero. But first mortgage should be kept on the sheets!
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