On Fannie Mae (FNM) and Freddie Mac (FRE)...
JJC:    Look, this is somewhat (options) expiration-related... but Wednesday expirations have been pretty good most of the time...  I would say that they've gotten rid of the systemic risks...  FNM and FRE had been the last big black holes... FRE had actually much more revenue than I thought could possibly happen...  I thought this revenue number would be a 2010 phenomenon...  It's starting right now...  They're getting a lot of business and it could actually offset the losses.  No bear thought that could happen... and the bears will deny it tooth and nail, but it's happening...  I would buy it on the deal... Here's one where they're going to price a deal... I would be a buyer on the deal, absolutely...  as I think the millions of shares that are short would have to consider, because FRE has its act together, and I think that a lot of people were taken by surprise.  People just figured that this was the ugly duckling one, and that FNM is better.  Fannie Mae (FNM) is not as good as Freddie Mac (FRE).  I think FRE is clearly distinguishing itself as being better run right now... Unbelievable.  I have to admit, I was completely fooled by this.  I would have thought that the checks came in, you'd get the numbers, the numbers would go good, and then the buyers would just kind of call it quits, and the sellers would come in.  It hasn't happened.  Maybe after Kohl's (KSS) tomorrow.  KSS, I think, will have a good number and, then, maybe you should let them go...  But, candidly, I misjudged the power of this rally...  I came back yesterday and said, look, maybe VF Corp. (VFC) is better than I thought... I checked back yesterday with a lot of companies, and certainly we know that Costco (COST) is better than we thought... but TJX was a little disappointing and, look, it goes up... Look at Wal-Mart (WMT)... WMT was a little disappointing, and it's right back to where it was...

I think a lot of people feel that the worst is over, plus we had that great Fed victory call... they defeated inflation... we can say that off the number.  Now, we're ready to ramp...  There are obviously many good things happening. 

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On the infrastructure play opportunity off the earthquake tragedy in China...
JJC:    Don't forget, we have the equivalent, in the tragedy in China, of another (hurricane) Katrina... maybe bigger... so we're getting a lot of companies... Caterpillar Inc. (CAT), Terex Corp. (TEX)... you're going to think that they're going to get some orders...  Steel was up.  Because of the world shortage in steel.  The rebuild in China will be monumental.  United Technologies (UTX) has a great elevator business there.  Cummins Inc. (CMI) makes the best diesel engines.  They do a huge business in China.  These are all headed up... they're all headed up... because of the rebuild.  People are already putting it in their numbers.   Now, we know that Katrina was gigantic...  

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On Trinity Industries Inc. (TRN)...
JJC:    TRN is up today...  I am saying that next year is going to be the year of wind power... This has been the year of natural gas.  Now I'm wondering if this year isn't the year of wind power...  TRN makes turbines.  Take a look at that huge deal that Fluor Corporation (FLR) got today from Scottish and Southern Energy...  That is a huge piece of business... gigantic 500-megawatt field of turbines... big...   And, don't forget, First Solar (FSLR), off that incredible number this morning on solar.  FSLR broke out today, and the bears can't hold it in...  Research In Motion (RIMM), Apple Inc. (AAPL), First Solar (FSLR) and Mastercard (MA)... If you were in outer space, and you wanted to know how our market was doing, those are the four you'd call in for... 

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On the homebuilders...
JJC:    Bob Toll (CEO of Toll Brothers (TOL) was negative, negative, negative, and I kept trying to say to him, listen, this whole thing started when Florida got overbuilt...  He's now saying that the West Coast of Florida is an "A" market... Now, he knows homebuilding, and I know stocks...  If Florida, which was the worst, is coming back... then, you know, you've got a bicoastal problem, really...  Florida and California... plus you throw in Arizona... Las Vegas...  I am telling you that, 18 months from now, this is going to be much better... much better.  Housing will be much better 18 months from now.  That's what the stocks are forecasting... I'm probably going to be a little late... I bet you it happens before then...

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