JKC1967

Financials: How - And When - We Reached the Bottom

Is it possible to see merit in both Tom's case and DSB's? I think so. There is no diubt by traditional metrics banks are extremely undervalued, but it is impossible to leave out the general macroeconomic environment. If the Gov't end-up taking over/guaranteeing FNM and FRE, if housing continues to drop for for the next couple years, if the general process of deleveraging and defaults extends more broadly into other types of debt like auto and credit card loans, if the FED has to raise interest rates due to inflation....doesn't mean all of these things will happen, but any analysis of banking securities that does not take these risks into account seems flawed. Would love to hear Tom respond to DSB at some point....