Ron Mahabir08

A Bet Against the Banks

globalmacro,

Definitely agree that a lot of carnage has floated to the surface. However, the banking sector still has a long way down. JPMorgan, for example, has $7.8 TRILLION in CDS exposure which needs to be marked to market. The monoliner issue is not one that won't be resolved with massive writeoffs affecting most major institutions. The property markets are not close to bottoming. The consumer spending slowdown is just starting and job layoffs will take time. This is not going to be resolved any time soon, and over the medium term shorting financials will be a very good trade. There are still quite lot of bulls - only when everyone is bearish will a potential bottom be reached.

End of Crisis or Dead Cat Bounce? Looking at Ultrashort ETFs

Couldn't agree more with you. Another sucker's rally in a downward cycle. Can't buck the property down cycle and insane amount of consumer debt that has now tightened beyond normality.