I guess everyone will jump on the bandwagon now. I have been saying for several weeks that the crisis in the banking sector will eventually be resolved.

This morning, we woke up to news that Treasury Secretary Hank Paulson is in negotiations with banks to freeze the interest rates for some sub-prime ARM's that are due to reset in 2008.

For those who closely follow my comments, you know that I have been "pounding the table, beating the drum, and screaming from the mountain tops" that the " Banks Stocks Look like Incredible Bargains!”

Opportunities Abound!
Bank Stocks Soar!
Warren Buffett adds to Bank Holdings

Maybe my newest slogan will finally get the attention of the financial media;

"Throughout our history, the track record is clear. Solutions to major problems always appear."

In the weeks and months ahead, and as more and more solutions appear, watch how analysts begin jumping on the bandwagon, upgrading their opinions on the banking sector. After a 10-20% rally, you will be hearing buy, buy, buy!

Yesterday, Credit Suisse upgraded UBS from Neutral to Buy. What the heck does "neutral" mean? The dictionary says, "not aligned with or supporting any side or position in a controversy." So, in short, a neutral rating means "I don't have the guts to make a call; if the stock goes up I didn't say sell, if the stock goes down, I didn't say buy". And these people get paid for this kind of advice? Gutless, just gutless!

One of the reasons for the poor advice on Wall Street now days is the number of neophyte analysts who have poor judgement, and lack historical experiences.

In his new book, " Full of Bull", Stephen McClellan, who worked on Wall Street for 32 years says;

" Since 2000 the number of analysts has diminished by 40%, and is expected to fall by another 30% by 2008".

In the book he goes on to say that many of the best, and well seasoned analysts left the investment banks to take jobs with hedge funds and private equity. The people being hired to replace the experienced analysts are "Unseasoned, and Lack Historical Judgment."

Some of the analysts I see on TV were obviously intelligent enough to graduate with MBA's from respected business schools, but were also playing in their sand boxes in the 1980's when the last real estate bubble popped, and last banking crisis occurred.

In short, I don't listen to analysts.