Lehman, Merril Lynch, and AIG Lead to The "Unbubble"

I recently heard a description of the current financial situation as an "unbubble".

I think this is appropriate because it does seem that, like in a bubble, emotion is starting to get ahead of fundamentals.

They say that there are 2 main emotions in trading / investing: fear and greed.

Well, in a bubble, greed wins out over fundamentals, and the markets eventually come back to earth.

In this "unbubble", it looks like fear is starting to win out over fundamentals. For example, the remaining 2 independent investment banks (Morgan Stanley and Goldman Sachs) are relatively healthy, but are seeing their stock punished, and are being "pushed" into the idea of merging with commercial banks.

I think it is still wise to steer clear of most financial stocks, but this is probably a good time to start looking to buy good stocks in other sectors of the economy.

As they say, the big money is made by buying when there is "blood in the streets".