Banking stocks - worth it now?

Question

Do you think it's worthwhile to buy banking stocks? They've dropped so low...

Answer 1

I think bank stocks are a good buy right now but only for LONG-TERM investors. I'm forecasting that it may be up to 6-10 years before this strategy pays off. If you are cool with that time-frame, by all means go ahead.

Answer 2

Trying to pick a bottom in a bear maket is "Risky Business"

They could have a short covering rally, but I would not bet my money on it.

Answer 3

it could go even lower.. i won't buy anything right now seriously

Answer 4

banks are now worse off than the customers thay are servicing. save your money...

Answer 5

Will continue to drop, more writedowns along the way.  Plus, don't forget that after these writedowns are over, banks will be struggling to find capital to repay their debt.  Because liquidity has dried up, where will they find the money?  If they can't, like the case of Bear Stearns, it will mean bankruptcy and buyouts.  Just look at the rumor yesterday on Lehman getting bought by Barclays.  If I were you, I'd long some puts on Lehman and Merrill... these two trade w/ the highest CDS spreads (which means highest probability of default).