Could it be we’re finding a bottom to the financial mess? I’m not an economist, but a couple of interest events point to some optimism:

Non-Government Assisted M&A - Usually, one of the first signs in forming a bottom is when investors (people, traders, firms, whatever) swoop in and start buying out-of-favor assets. Think value investing. A couple of news items recently seem to point to that happening:

First, Citibank agrees to buy Wachovia’s banking assets. Then, this morning, the Wall St. Journal announced that Wells Fargo plans to buy Wachovia, without government assistance. And NOW it seems Citibank is crying foul and will bring legal action against the Wells/Wachovia deal. They are actually FIGHTING over Wachovia. This is certainly a different attitude from a week or so ago. Indeed, Wells Fargo’s charirman recently said that “fixer uppers” could now be obtained at a discount. “Given the financial conditions today, I feel like a kid in a candy store,” he has said. Sounds like value investing to me.

Credit being promoted - We received an interesting email from our UBS broker yesterday containing a flyer (click here to download the UBS Credit Flyer) promoting a UBS Bank USA Credit Line. You read that right: in the midst of a credit crunch, UBS is offering credit.

Certainly, two events do not make a broad trend. But I tend to be an optimist. Let’s just hope the light at the end of the tunnel is not an oncoming train.