Replies to post #147121 on ajtj99's Market Pulse

[ajtj99]

The writedowns that have yet to be taken dwarf any earnings the banks are going to have the next 4-years. The bad paper hiding in just Tier 3 at some banks is enough to wipe out earnings for the next two decades.

The zombie banks out there are really dead banks walking in spite of the attempts to put lipstick on those pigs.

[jdaasoc]

Gizmo posted a chart showing all the balloon and adjustable rate mortgages coming due and the bulk of them are coming due by 2011.

http://www.calculatedriskblog.com/2007/10/imf-mortgage-reset-chart.html

Post 2011, the chart looked like it dropped off the table. Bank prospects are going to look very dim when the 70% of people underwater or with not enough income to qualify for refinancing are going to be begging for their personal government set asides or face the prospects of walking away and living on the streets.