Just a quick note because I am tired, but Ken Heebner has turned bullish on financials. I’m not there yet, because I think there is more pain to come in losses from benk lending in HELOCs, Credit Cards, Commericial Mortgages, etc. I am slightly underweight at present with exposure to insurance only.
I admire Ken Heebner a great deal… I think he is early here, unless collateral prices stop declining. Unlike Ken, I think the actions of our government will prove ineffectual. Perhaps it would be better to buy the bank loans or senior debt of these firms. Less downside, and reasonable upside.
