Barron's Don't Buy Brokers

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From Barron's 8-11-07:

"The debt market collapse has cost brokerage firms big-time in recent weeks. The group has seen its shares slide 18% from their June peak, leaving them down 9% for the year.

That sort of selloff is likely to spark bargain-hunting, but the impulse may be premature. The extent of the bond market's turmoil suggests this may be no short-term correction or even simple repricing of risk, but the popping of a credit bubble that has been inflating for five years, fueling the growth of the brokers and so much else."

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