Time to short bank round 2?
Ok here is my thesis
CNBC/MSNBC/FOX aka populist rage bringers will pick up the wiki leeks, will have ppl trying to analyze which bank he is talking about
this will cause the some ppl to question if there banks are safe and start to with draw money
now the banks will questions if they can trust the other as a counter party and slowly limits amount lended and cause gosip on who the bad bank is
bank stocks will get crushed as investors pull money out bank equities bc of the better safe then sorry mentality
argue gogogogo!
oh yea and analysts who cover financials will be double thinking about the ratings they put on banks
Your synopsis is a bit dramatic, however it is possible.
I personally do not feel as though the media/public will take the wikileek noise all that seriously for now. If a particular bank was named, then people may start to scurry, but for now only volatility should rise. More clarity and specificity is needed for the financial system to be at systemic risk as the failing banking could be small and strictly commercial.
I am very curious to see how this all unfolds and I can only hope that your hypothesis is off.
I've rode this market long for a while now. I think we are downshifting into a slower gear and getting ready for some hibernation. I think investors are gonna play it safe here and pull back, and take in some profits.
TOLD YOU
http://www.cnbc.com/id/40437169
Iste fugit eveniet autem nostrum officiis et est. Dolores blanditiis harum alias delectus in.
Quasi fugiat vitae minus dolor et blanditiis qui. At magni voluptas aut voluptas nihil. Reprehenderit quod enim libero et illum. In omnis eaque explicabo amet id sit voluptatem vero. Qui nihil magnam unde quam iste quo.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...