House of Paine

the heat is on

 
  evo gram on the lots drop 

the key 
query

 will the  price drop
shake the financial sector?

my guess

the big boyz iz kool 

but 

 we might have 
              an S&L II 


==========================================


my first take 
if the swan dive is deep enough
or lasts long enough 
some small  banks 
overly dependent 
on household lending
(mortgages equity lines etc etc)
will get clobbered


and to back my hunch up

well...

 if there's  anything
  about small banks
      I 
WANT TO KNOW 

i go to ...
 
 nick adams  


why ?


 his closed end stock fund
zeros in on small bank stocks
 and 
 is 
"the best-performing
 closed-end fund 
of any kind 
over both 
the past five years 
      and decade,
 according to Lipper Inc."

so here's nick :

"The past five years
 have been very good times 
for small bank stocks in general"

"But the immediate trend
    is not so friendly.
  for
   small financial stocks
   I'll declare myself 

''caustically  pessimistic.""




" like everyone else
        I worry
         about 
 foot loose  real estate values
colliding 
 with  interest rate hikes "

 

"  but more to the poiint
  what will happen 
 when 
  the world's financial  system
  sends  the fllod of funds
                  now
                       soaking up
      all these   asset-backed securities 
                 that fuel 
                          our  home mortgage  
                                        boom             
                               off to other 
                          suddenly greener pastures  "



 " for the foreseeable future
        serious money  opportunities 
                 in the small bank area
                   the household  lending area 
                    will  few  and far  between," .

" yes 
  we fundees
have to figure out 
 how to manage 
a series of possible problems"


" like ohhh
 an  inverted yield curve 
   where 
 short-term interest rates 
      suddenly rise
 above longer-term rates
             and flat footed
little  lenders get turkey roped "