Quote of the Day: John Paulson on Financials
Star Fund manager John Paulson isn't buying the worst-is-over stuff so common amongst the data-free punditry:
"Although financial stocks rallied sharply during mid July, we believe the gains will be short-lived. We expect that the negative effects of continued home price declines and contracting credit will lead to a decline in consumer spending and, in turn, a decline in U.S. GDP.
"As the economy weakens, we expect credit costs will continue to rise, resulting in weaker financial earnings, the need for additional capital and lower stock prices for financials."
That quote comes directly from Paulson's second-quarter report to investors...
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Source:
Bottom-Fishing Among Financials
Robert Lenzner
Forbes, 08.04.08, 6:00 AM ET
http://www.forbes.com/opinions/2008/08/01/stock-market-bottom-oped-cz_rl_0804croesus.html
Wednesday, August 06, 2008 | 01:30 PM | Permalink
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Gawd I love when I agree with Paulson on something useful. Makes me feel warm all over.
Posted by: Paul Kedrosky | Aug 6, 2008 2:36:14 PM
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