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By Stockpickr Guest Columnist Thomas Brown

Originally posted to, the following is a response to last week's "Bank Stocks Headed to Zero" article on

Have I mentioned I'm

bullish on the financials

? In case I haven't, here's the

thumbnail version why

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  • Valuations are idiotically compelling.
  • Inflows of new problem loans, especially mortgages, appear to be declining.
  • Delinquency roll rates are declining, as well.
  • Lenders have begun to liquidate their foreclosed properties in an orderly fashion.
  • The outlook for the companies, postcrash, is startlingly strong.

It's not complicated. Even so, beyond my formal bull case, I can't help but notice a few straws in the wind this week that have reinforced my optimism. By themselves, they're trivial -- but just the sort of small, telling events that tend to occur at market extremes.

To read more, please click here.

Tom Brown's firm, Second Curve Capital, owns JPMorgan (JPM) - Get JPMorgan Chase & Co. Report, Ambac( ABK), MBIA (MBI) - Get MBIA Inc. Report, First Marbleheadundefined, First American (FAF) - Get First American Financial Corporation Report and other financials.

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