Watch for the hedge funds shakeout

Those that tout making the deal at any cost will be the ones shaken out.

Key points:


"Investors today are watching the wrong ballgame, and totally completely over-reacting to that game.

The subprime situation is indeed a mess, but hardly a surprise. Smart money guys like Ben Stein have correctly dissected the whole mess, and called it for what it is. After estimated recoveries on the actual foreclosed properties, it may portend a 2 or 3% loss, which, in historic loan loss terms, is about the proper amount that should have been reserved anyway for good loans, not to mention loans that everyone knew upfront had 'issues.'"



"Can money still be made in the coming cycle?

Absolutely. Listen to the seasoned experts like Ben Stein. Don't buy into panics that may be just disguised efforts to roil the markets for the benefits of a few gunslinging traders."