Another Bank Panic Or Bank Buying Opportunity?
This morning, Goldman Sach's Chief Financial Officer, David Viniar, explained how Goldman Sachs beat the street's earnings estimate by stressing that "Goldman is actively adding assets, using its balance sheet to pick up bargains in markets when many investors remain stuck to the sidelines.
" Viniar stated that Goldman is now "jump[ing] on distressed opportunities now emerging in the market," and reasoned that "from a credit market point of view, we're a ways through what happened," and that "the first weeks of March were the bottom.
" So, apparently Goldman Sach's CFO believes the credit crisis has peaked and that now is the time to be picking up bargains.
This is quite the contradiction to what Goldman Sach's analysts had to say this morning about the condition of the financial industry.
According to an analyst at Goldman Sachs, "banks may need to raise $65 billion in new capital," stating that "home prices have driven credit deterioration and we believe they will keep falling through the year end," and that the credit crisis "will not peak until 2009.
" However, it is nothing new on Wall Street to have differing opinions of the current situation.
Me personally, I would take the words of the CFO over the words of an analyst.
Either way, the pull back in the markets today made for a great buying opportunity in Washington Mutual (WM).
I believe that this stock has bottomed out and has great upside potential.
It closed today at $6.
22, only 47 cents above its 52 week low of $5.
75 reached earlier this month.
" Viniar stated that Goldman is now "jump[ing] on distressed opportunities now emerging in the market," and reasoned that "from a credit market point of view, we're a ways through what happened," and that "the first weeks of March were the bottom.
" So, apparently Goldman Sach's CFO believes the credit crisis has peaked and that now is the time to be picking up bargains.
This is quite the contradiction to what Goldman Sach's analysts had to say this morning about the condition of the financial industry.
According to an analyst at Goldman Sachs, "banks may need to raise $65 billion in new capital," stating that "home prices have driven credit deterioration and we believe they will keep falling through the year end," and that the credit crisis "will not peak until 2009.
" However, it is nothing new on Wall Street to have differing opinions of the current situation.
Me personally, I would take the words of the CFO over the words of an analyst.
Either way, the pull back in the markets today made for a great buying opportunity in Washington Mutual (WM).
I believe that this stock has bottomed out and has great upside potential.
It closed today at $6.
22, only 47 cents above its 52 week low of $5.
75 reached earlier this month.
