With Q2 financial earnings out on Monday. Wells Fargo, Citi Corp are the front runners. Wachovia, Washington Mutual are very fraigile. Who’s next?
Last week Fannie Mae and Freddie Mac signaled alarms. They have too many bad loans in hands and could not digest them. Rumor has it that Government should step in to rescue them. Fannie already got approval to publish some stocks to boost its assests and help to dissolve some debts. Bernanke and Paulson all went to Capital Hills to testify about the bank crisis.
My two cents thoughts on this: AVOID SECONDARY MARKET, USE YOUR BANK DIRECTLY. AND HOPEFULLY, YOU HAVE A HEALTHY BANK.
Lenders typically sell loans to a secondary market such as Fennie Mae and Freddi Mac to get better rates. In a healthy and booming economic cycling situation, it stimulates the market. But in a staling langushing market, bankcrupcies occur. Your bank is your first source of lender.
How do you know your bank is safe? Where do banks go, when they need money?
Hoovers has published some articles and numbers, take a look.
At the same time, take a deep breath and sigh, for the next wave of bad bank news will come!