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!

Comments (5)

Nov 30, 2010

oh yea and analysts who cover financials will be double thinking about the ratings they put on banks

Nov 30, 2010

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.

Nov 30, 2010

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.

Dec 1, 2010
Dec 1, 2010
Comment

If I had asked people what they wanted, they would have said faster horses - Henry Ford