the worst is ahead for banks, page-17

Good discussion. A lot of insights here.


There seems to be big push in the US for the banks to come clean and writedown everything in one hit instead of do so in dribs and drabs.


As far as I can see, this would clean up the system and the world economy could move on.

John Stewart has done the right thing writing down these AAA debts to zero.

All other banks should follow suit.

But there is more to this story. The recession will impact on earnings more.

But do we know what the situation is with earnings?

Prices are all about expectations. I just wonder how much of the bad news is priced in, in fact there may be more particularly since Australia is supported to a certain extent by resources.

My feeling at the moment is that the market is being forced down by things happening in the US.

Earnings may be a lot better than we think.

But we don't know yet. Reporting season has just started

GUD has forcast flat earnings and the price has dropped.

Perhaps we should be waiting for other reports to come in.