JKC1967

Making Money With Fannie and Freddie: Bank of Ozarks' Conference Call

Great article - Bill Gross in his outlook for 2009 said the best strategy is to "shake hands with the Government, buy what they are guaranteeing, and try to get there first" (I'm paraphrasing here). Sounds like these guys at Ozark did excactly that, I wish my fund manager had thought of it, believe me.

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....