Posted by loma on 1/22/09 11:44am
Msg #275300

Bank Stocks SURGE any thoughts? Is business coming back?

Yesterday many bank stocks gained 10% plus.

Will this have an effect on our business?

What are the indicators that would mean a pickup for our business?

Please help me understand what I should be looking for.

Reply by BobbiCT on 1/22/09 12:05pm
Msg #275303

I doubt it ...

In short,

Stock purchases increase the capital of a bank.

Consumer DEPOSITS increase the funds that banks have to lend from. When deposits increase or a bank gets a TARP requirement that it must use funds TO LEND, business will start to boom.

From my perspective, this is no worse that the last three times the real estate mortgage industry tanked. It's a matter of "how long" before the next "boom," which has been years. It is worse for the construction industry, this time there is a glut of "new" homes on the market.

Reply by Lee/AR on 1/22/09 12:18pm
Msg #275306

Re: I doubt it ... 1 second that! n/m

Reply by MonicaFL on 1/22/09 3:02pm
Msg #275322

Well, let me say this - I have had more closings this month that I had totally the last six months. They are all refis. Maybe this is a good sign. Sure hope so.

Reply by MW/VA on 1/22/09 3:14pm
Msg #275323

What banks are "surging"? BOA is at 5.97 share. I had bought at $25/sold at $17 a couple months back. BOA bought up troubled Countrywide & Merrill Lynch, and assumed a lot of bad debt. Of course, the banks are hoping to get government bailout money.
Business is up--rates are fantastic--and phones are ringing steadily for lot of refi's. At least for us, it looks like 2009 will be good.

Reply by Todd/OH on 1/23/09 7:27pm
Msg #275462

Bank stocks surging?

You won't see that until they start lending again. That means interest income. Delinquencies
and foreclosures have to back off before interest income means anything. Everyone has mold on their books. By "mold" I mean bad loans being really old - and can't get rid of 'em.