Unsurprisingly the market seems to realize that the ratings agencies are simply reflecting the past as opposed to the future.  They were wrong when they gave the banks AAA and AA ratings, and they are wrong with many of them rated BBB even though they are sitting on double the capital that they had in...Read More

Today’s housing news contributed to the market route but I don’t think the number were as bad as some people think.  Sales of existing homes were still up 9.6% from last year, and although they were down sequentially, inventories are low limiting sales opportunities.  It is going to be a tough slog especially with all...Read More

The disaster that is Moody’s (MCO) has finally struck again with a massive downgrade of five of the six largest U.S. banks.  These downgrades come despite some of the highest historical liquidity and capital ratios in the banks histories, and improving credit metrics.  Why Moody’s can operate in an oligopoly when their service is complete...Read More

This article discusses some of the cheap stocks that are trading at low price to book values due to the European crisis.  While I agree that the European banks look interesting, I find U.S. banks to be the better buy because they trade at similar valuations despite higher capital ratios, and less exposure to European...Read More