BSCLossMan

Freddie and Fannie: Living in the Past

In my humble opinion, entities like fannie and freddie should not exist and should never have existed. Banks that write loans should never be allowed to package them in any way, shape or form, to sell elsewhere. It's clear that Wild Capitalism, during which anyone will do anything to make money and juice returns, the only restraint (obviously government supervision doesn't do much) is to force, by law, banks to hold all loans on their books. Period.

Our Advice? Buy the Financials Now

I like your thoughts, but the end of the financial crisis has been called all the time, even in January. We aren't close yet; too much deterioration. After Fannie & Freddie & LEH fail might be the time to buy. Then again, financials could go down further, even after that. AIG case in point; when they do another massive write-down, financials will follow downward.