Yet Another Seeking Alpha Article about Troubled Banks

We all have our own strange hobbies, one of mine is pouring through financial statements of troubled financial institutions, and writing about the chaos I see in their numbers.

In this article, I once again predict the demise of three medium-small banks that were completely reckless with their lending practices, and which stand out as particularly bad actors in an era when most banks were at least somewhat reckless.

If you have uninsured deposits in any of these three banks–Downey Savings (CA, AZ), FirstFed Financial (CA), or Bank United (FL)–by all means take them out as soon as possible. There is a substantial chance that you will face losses on the scale of IndyMac’s uninsured depositors.

Lest I seem to be a complete bear, at the same time I think now may be a good time to invest in conservative utility stocks like DPL, clean energy funds like PBW,  and clean energy stocks like TSL. I am still very impressed with the growth story of Starbucks (SBUX), Google (GOOG), and China Mobil (CHL), which are down substantially from their highs. More adventurous investors might consider investing in some GM bonds now yielding 17% (XGM).

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