Dynex Capital, Inc. (DX)

Banks, morgage companies, and financials in general will surely find the enviroment going forward challenging. The consumer is struggling, and all forms of credit are seeing rising loses. Thumbs down for this sector for the forseeable future. Additional capital will be required by regulators, and the appetite for risk has decreased dramatically over the last year. The FDIC is calling retired former employees back to deal with the potential collapse of 300 to 1000 banks in the coming year or two. In this decending cycle it will become more and more difficult to grow profits and expland while actual consolidation of the industry is taking place.