I remember in the early 1990s when the savings and loan crisis was raging. It turned out to be a classic case of investors "throwing the baby out with the bathwater" and dumping S&Ls indiscriminately. Alert value players sifted through the wreckage, scooped up some bargains, and made nice gains.
I wish I could say I was one of them -- but wasn't (sigh).
Reading Gregory Zuckerman's fine piece on New Century (NEW) in The Wall Street Journal has me wondering how many bargains will eventually emerge among subprime lenders. Or could it get so bad that the stock prices of all lenders get slapped down -- and the key ends up being separating quality lenders from the rest?
No predictions here. Or at least not yet. Just something to keep our eye on.