who will save the mortgage lenders? (ABK, rated SELL)
Posted on January 27, 2008 at 10:06 AM EST
you've got to be kidding if someone is going to bail them out. with warren buffet stepping into the picture, these horrible mortgage lenders will fold over into the hole. there is no doubt about that. who would you trust? big B or ABKMBI? i've been shorting ABK for a long time. the only problem i see here is that it won't have much else left to go from here (about 10 points from zero). just be careful on news with some spin, and the fed getting out of hand with the rate cutting. know that fed cutting rates even more could have the potential to bring more ppl looking for homes into the market (thus further extending the sub-prime crisis). GL