Seeking Alpha contributor Annaly Salvos notes that as earnings seasons for financials and other players flips into full-swing mode, it’s critical to not only look at the numbers, but listen to managements’ calls. He cites this past Friday’s disclosures from J.P. Morgan Chase ceo Jamie Dimon, who in commenting on the company’s outlook took pains to say that the company’s exposure on housing continues to cloud the picture. Annaly Salvos says that as data points turn positive, it’s important to maintain focus on the connection of policy to trouble: “sometimes the connection is simply back to the root of what got us here in the first place: the deterioration of underwriting standards for residential mortgages during the boom and the resulting woeful credit performance.” Can’t argue with that.
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