An article on marketwatch today highlights the reasons I've been positioning for U.S. banks to take a tumble. It spot on nails the two reasons I've been short banks since the beginning of the year: 1. A growing public opinion of disapproval towards stimulus and Bernankes seeming unwillingness to support QE3 (The two seem related, theres a lot of public and political pressure against a QE3). 2. National debt cieling disagreement. Uncertaintly and turmoil in this matter may bring the banks to their knees.
The article also cites the greek debt crisis, which completely escaped my mind until it took a bigger spotlight in the news a month or so ago. If I could find the numbers on how much greek debt our banks own, and who owns what portion, that would be perfect.
Heres the article:
http://www.marketwatch.com/story/three-financial-funnel-clouds-ahead-2011-06-28
We have a specific timeline, and a reasonable idea of what the decisions will be when each deadline comes. It sounds easy, but I'll have to follow up on this post in August to evaluate theses assumptions.
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