We have seen that recently in so many situations that it is pretty dazzling. It was one thing to see Genworth (GNW) back from the dead on its own.

But then we had Regions (RF), Zions (ZION), Huntington (HBAN), KeyCorp (KEY) and Fifth Third (FITB) recover from their death beds. They all seemed frothy at the time. Now, however, they are "turnarounds," which, while one step above froth, has a ring of authenticity to it.

But then we had Regions (RF), Zions (ZION), Huntington (HBAN), KeyCorp (KEY) and Fifth Third (FITB) recover from their death beds. They all seemed frothy at the time. Now, however, they are "turnarounds," which, while one step above froth, has a ring of authenticity to it.

But then we had Regions (RF), Zions (ZION), Huntington (HBAN), KeyCorp (KEY) and Fifth Third (FITB) recover from their death beds. They all seemed frothy at the time. Now, however, they are "turnarounds," which, while one step above froth, has a ring of authenticity to it.

But then we had Regions (RF), Zions (ZION), Huntington (HBAN), KeyCorp (KEY) and Fifth Third (FITB) recover from their death beds. They all seemed frothy at the time. Now, however, they are "turnarounds," which, while one step above froth, has a ring of authenticity to it.

Fifth Third, in particular, raised so much money that Goldman Sachs recommended it as a conservative regional. From zero to hero! Anti-froth!

Last week you got total revenge of the alleged froth. It started with AIG (AIG), which would have gone nowhere if it hadn't split, but once it had, the shorts figured layup. Then we got the change in management and the profit number -- however specious you might regard the profit given who and what is owed -- and suddenly you had an investible short squeeze.

To me it looks like Fannie and Freddie have gone from total froth to somewhat speculative, which makes using them as a benchmark for too much froth and therefore selling stocks on it kind of a dubious game plan. And that's really the point. When froth begets investment, when the public is speculating and it turns out the public is investing, then you can't make a big bet simply because you see froth as it is disappearing right before your eyes.