Wachovia today reported pretty much the same as other banks, lower earnings due to turbulence in the credit markets. It missed analysts expectations due to a $1.3 billion write down from bad loans and mortgage related products. McDonald's on the other hand reported stellar earnings and profits. What does this say?
To me, this may represent the shift away from financial services to comfort food. Banks have had a pretty good run over the last twenty years fueled by baby boomer assets, the Internet bubble, and then the housing bubble. What comes next? Sure, there's China but China has its own banks. Plus, it's probably ready for some type of pullback soon.
No, I think comfort stocks may be the ones to look for. People after all, need a little something to help them through the falling equity on their homes. And they won't be going out to fancy restaurants as much now that the home equity ATM is gone.
McDonalds looks like a good bet.
Comments
HB IN LAS VEGAS
September 17, 2008
I called Wachovia yesterday to make arrangements to pay my car loan later than expected. The first sentence out of the mouth of the Rep to me was "what you you think if you went out to your driveway in the morning and you car was gone?" I could not believe I was speaking to a loan departmeny. I felt like I was being threatened for paying a bill late.
Wachovia is in the crapper, right so they want another
repo car in their laps?
Do not ever get a loan from this place.
I was never more insulted.
I then asked to speak to her supervisor and got the same treatment. I was calling to arrange payment, not to say I will not pay.
As my loan reads, you have to be behind 3 months in payments before they repo you. The supervisor said, oh no she said. Our CEO has informed us that they will not tolertae any loan payment over 30 days late.
How can the CEO change what my loan says?????
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