What Do Banks' Earnings Results Tell Us?

" Government subsidies have created artificial demand for refi's and new housing, effectively "borrowing" from future demand. As interest rates start picking up in early 2010, demand could falter. This adds to concerns about a potential additional leg down in home prices. The government will have to be extremely careful in orchestrating its exit from the mortgage market, and history tells us that such micro-managing of the financial system cannot be successful."