My portfolio of “Great Recession” stocks keeps on climbing. Key elements of the portfolio are my buys of shares in “Zombie” banks, you know, the ones that most thought should have been allowed to go bankrupt or should have been nationalized. In fact all three, Bank of America, Citibank and Allied Irish Bank, have been acquired in part by government, the Feds for the first two and the Irish Government for the last. In essence I am a co-shareholder with my government and that of Ireland.

In spite of their hasty obituaries the three, like a Timex watch, “keep on ticking.” Even more interesting, they are trying to attract the best trading people they can find with huge bonus offers. They know that they need these types to reenter the rapidly recovering markets for derivatives, mortgage backed debt, collateralized debt and credit default swaps. Funny, I thought this was the reason we fell into the “Great Recession.”

This rapid recovery, faster than the Feds can produce new rules to give greater transparency and better control over these markets, confirms my contention all along, the problem was not the massive new credit structure we created, but our erroneous valuation of the assets based on this credit.