Filed under: Bank of America (BAC), Merrill Lynch (MER), Countrywide Financial (CFC), Goldman Sachs Group (GS), Wells Fargo (WFC), Bear Stearns Cos (BSC), Housing

The American system of capitalism is alive and well. Yes, some homeowners will lose their homes. This is the human side, and it is painful. The old expression is when your neighbor loses his job (or home in this case), it’s a recession, when you lose yours, it’s a depression. The TV reports showing a family in strife is not easy to watch and feelings run deep. Many banks want to re-negotiate, as it is expensive to foreclose, and some bankers are even humane.

But these trying times are when serious, long-term investors pounce. Investors like Warren Buffett and others have been quietly purchasing the shares of the better-run banks, because if one looks out one-to-three years, the picture looks far better. Currently their respective dividend yields are superior than a 10-year U.S. Treasury Note, and they offer the prospects of growth and potential dividend increases.

Continue reading The Good, the Bad and the Ugly: The Financial Stocks, Part 5

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