Tuesday, March 25, 2008
Subprime crisis over, bad apple found, housing bubble can resume
"The actions taken by the Federal Reserve were innovative, dramatic and, in my view, brilliant because they went right to the problem," Bove wrote in a note to clients. "The actions being taken by the Federal Reserve are being mirrored by the Treasury, which now has finally grasped the scope of the problem.... Bove's advice stands in contrast to that of strategists at Citigroup Inc. who advised clients Wednesday to avoid leveraged financial-services company stocks because the "Great Unwind" has begun." I personally don't think it is over yet but Citigroup usually get it wrong!