Sub Prime Predictions

With all of these write down by banks for their "subprime" loans I thought I would make a prediction. My prediction is that over the next few quarters banks earnings will do pretty well. Think of it this way. You're a new CEO taking over for a previous CEO who has just stepped down for failing to recognize the risks of sub prime loans. The smart play if you are the new CEO is to write down as much as you can this quarter because all of the bad performance will be blamed on your predecessor. That way over the next couple of quarters you can bring in some of the excess write offs into income. Now I'm sure there are write downs that need to occur but the new CEO's definitely have motivation to be as "conservative" as possible.