New Year...New Problems for 2010

stock picks for 2010I took a bit of a hiatus on the site during the bulk of the Christmas holiday, to spend time with the family. Volume remained very light to end the year and news was pretty minimal to the point that nothing earth shattering occurred. Anyways, I'm back and ready to take on 2010, with an outlook of good returns.

Being that we started the first full week of 2010 with a 150+ for the Dow, many investors believe we are taking where we left off. The Dow now sits above 10,500, which is well above what many (including myself) thought it would ever be by this time. However, there still exists much too many economic pressuring elements that could surprise many in 2010. With the help of government stimulus, for the time being, things have appeared to somewhat return to status quo. Few worry anymore of big bank failures, deflationary down spirals, or a even further deepening recession.

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Big banks are finding themselves in a much better this point then they were a year ago. Balance sheet transparency has been blurred, with help from government legislature giving them permission to manipulate accounting numbers to their benefit. The government has been very active in keeping borrowing interest rates low as well purchasing conforming mortgage loans. Also, bank stops have rebounded phenomenally, which has allowed many banks to be able to payback their "bailout liability."

One problem with the banks now is that not much has been learned from this past deep recession. Due to government intervention, many banks did not suffer the consequence of careless lending. All that has been learned is that if times get too tough, and your big enough, Uncle Sam will bail you out.

Now that equity is building up in the banks, the first thing most are doing is paying back TARP funds. This is not being done as a duty of responsibility or means to strengthen their balance sheets. It is more to enable the banks to release themselves from the puppet strings that come with the TARP balance. In fact, for many of the banks, paying back TARP, has only made them less willing to lend. After Bank of America paid back their share, their first order of business was to pretty much completely shut down their loan modification division. Now that their debt is repaid, they no longer need to play by the rules. They can now benefit from the 0% borrowing as well as not have to work with their struggling loans. Puffed up executive salaries can also now come back to the table. Unfortunately, the lesson of greed, and its consequences, has not been learned.

There is no doubt that lending will remain quite scarce throughout 2010. The government has made it clear of its intentions to put the brakes on the purchasing of securitized debt. Commercial lending will continue to remain slow as retail tenants continue to struggle and the job market has a slow bottoming. In fact, the commercial real estate market as a whole, will most likely struggle downward well into 2011. Residential led us into this crisis, and commercial will most likely be the caboose.

Such an environment is prime for opportunity. Potential for big gains is at the door. We have most likely not seen the last of big, volatile days. Most of the general consensus now agrees on the general direction of the market, which usually means the market is primed for a change. It is this part in recessions/depressions that can do the most damage. Happy Trading.


  1. John Wright Says:

    Are you sick of getting the run around by Bank of Defrauding America concerning your modification!?


    If it walks like a piggy, talks like a piggy, by golly it’s a PIGGY!

    BofA and it’s CEO Brian Moynihan reminds me of that song by John Lennon and George Harrison titled "Piggies" I invite you to listen to this song on youtube and see if it appropriately fits.

    Have you seen the little piggies
    Crawling in the dirt
    And for all the little piggies
    Life is getting worse
    Always having dirt to play around in.

    Have you seen the bigger piggies
    In their starched white shirts
    You will find the bigger piggies
    Stirring up the dirt
    Always have clean shirts to play around in.

    In their ties with all their backing
    They don't care what goes on around
    In their eyes there's something lacking
    What they need's a damn good whacking.

    Everywhere there's lots of piggies
    Living piggy lives
    You can see them out for dinner
    With their piggy wives
    Clutching forks and knives to eat their bacon.

    John Wright vs. Bank of America Lawsuit at:

    When I filed my lawsuit against Bank of America, myself and United Law Group thought of the many others out there in the same situation. It was then that we decided to educate the public on what these piggy banks are doing, as well as unite us all together as one voice. Please help me turn this David vs. Goliath modification process, into a Goliath vs. Goliath.

    Please stand with me and United Law Group and send an email to Bank of America that states that we will no longer tolerate their potentially illegal, fraudulent, irregular and abusive business methods.

    Divided we might have fell America, but united we must stand!

    Please send your email directly to Bank of America and include the following:

    1. Your name
    2. Your complaint concerning your experience with Bank of America.
    3. Please end your email “I support John Wright vs. BofA Lawsuit!”
    4. Please send a copy of your email to
    5. Please send your email to both BofA link below and the CEO email

    BofA Linked Email:

    CEO Brian Moynihan:

    Matthew Task, Executive Relations
    Office of the CEO


    A nice revirews of things.

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