All is Well . . . ALL IS WELL

Tuesday, July 22, 2008 | 09:15 AM


Every time I read an article like the one below, I get a flashback to that scene towards the end of Animal House, when Kevin Bacon yelling to the crowd "All is Well . . . ALL IS WELL" -- just before the mob pancakes him . . .

The beginning is the Pollyanna portion . . . further down, we get to the meat of the issue:

"Few analysts say the banking industry as a whole has turned the corner. Nearly every major institution is wrestling with surging losses tied to real estate, credit card and construction loans. But investors are starting to recognize that the losses may not be as severe as they had initially feared. They are also realizing that banks may have the earnings power to offset bad loans and absorb further write-downs.

“It is too early to say things are getting better, but this is coming off extreme fears,” said Mark Fitzgibbon, the director of research at Sandler O’Neill & Partners in New York.

Financial shares have swung erratically during the last week and a half as the Bush administration moved to bolster the nation’s two largest mortgage finance companies, Fannie Mae and Freddie Mac, and federal regulators seized a large California lender, IndyMac Bancorp. But the sector roared back late last week after Wells Fargo, JPMorgan Chase and Citigroup reported strong results.

Bank of America has another reason for optimism: The Countrywide Financial Corporation, the troubled mortgage lender it recently acquired, is now expected to turn profit this year, Bank of America said Monday. When the acquisition was announced in January, Bank of America said the deal would have no impact on earnings this year.

Still, investors fear that losses from Countrywide’s $111 billion loan portfolio could spiral higher, and that Bank of America could be saddled with billions of dollars in litigation costs stemming from Countrywide’s business practices."

Now if I can only find that video clip of just him at the end . . .


Bank Beats Forecasts, Reassuring Investors 
NYT, July 22, 2008   


Tuesday, July 22, 2008 | 09:15 AM | Permalink | Comments (29) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



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Bacon's "All is well!" scene is perfectly paired with the scene when John Belushi drives away with the blonde in the convertible with the caption "Senator and Mrs. John Blutarsky."
That sums it all up for me.

Posted by: bluestatedon | Jul 22, 2008 9:31:17 AM

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