phillips49

Is There a Margin of Safety in Financials?

Why would an investor with a modicum of common sense buy any of the financial stocks? The financials are not exactly transparent, open or even honest. Witness Bear Sterns just a couple of weeks before collaspe.......Everthi... was OK. Surprise! The financial world invented CDO's, which they couldn't even value properly. Then they leveraged what they couldn't value. Nobody knows where home prices or defaults are going and now the financials are having to buy back bad assets sold at auction rates to raise capital and clean up balance sheets. Investing should not be based on hope.