Financials Lead a Recovery?

After a day like yesterday, things were looking good for the entire market, but of course another financial has even more problems. It was announced that Freddie Mac (FRE) had a 2nd quarter loss of $821 million, more than the analyst expected, leading me to believe yet again that we are a couple months away from any kind of market recovery.

It has been shown in the past few down markets that financials always lead the way to a recovery, is it true this time? I wouldn't count it out because no matter how you slice it, financials are where the financial gurus always feel comfortable evaluating value and price. Their bread and butter. I was telling a friend of mine the other day that financials seem to be indicative of market conditions, solely because a fund manager with an MBA, CFA, Etc. feels comfortable in financials, because it is what they know better than any other industry.

Another sector that could lead us out of this is infrastructure. Let's face it the US has a lot of work to do in this arena, and if they commit billions of dollars toward it (which both McCain and Obama pledge to do), this will not only create jobs, but also revitalize the US. The big question is: Will the financials have taken care of their CDO and MBS subprime mess before the infrastructure boom, or after?