Fuck the Banks

The banks are not having a bad day. Instead, they are having a horrendous day, with out sized losses in WFC, JPM, MS, USB and most of the REITS. As you know, my largest position is FAZ, which is deep in the red, following last weeks torture melt. However, it’s only a matter of time before our favorite banks start warning and raising capital again.

Some pacific coast banks that should trade lower, include: PACW, WABC, ZION, EWBC and PCBC. I would throw FED in there, but that fucker is already $2 bucks.

In the short term, the market is going to follow the money. If desperate hedge fund managers want to jack up the market, in order to “save their year,” they will. Eventually, the masses will come to their senses and bid down stocks, much to the chagrin of pigeon brained asset managers, like Bill Miller.

Today’s theme is “fuck the dollar,” with t-bills selling off to boot. In the short term, money flowing out of t-bills is great for stocks. However, looking down the road, if we see the dollar continue to weaken, coupled with yields going up in t-bills, that can be seen as a vote of no confidence from other governments to fund our deficit. That is something to look for, down the road.