The Cynic

The U.S. Banking System's Terrifying Balance Sheet

This situation is so entirely laughable. Now is the time when the Puppet (a.k.a. US Administration) is in a position where it can pull the Puppet-Masters' (a.k.a. the Big Banks') strings. If independence was truly desired, the Administration could do something about it. but is it? No. Why? Because the Puppet-Masters still grease the political machine and thus the politician has no real interest in independence. And what do the People do? Nothing, they keep paying their taxes relatively dutifully. Morons the lot of us; maybe there'll be a day when we don't take it any longer.

We Need to Break the Banks

Do you honestly expect Washington politicians whose activities are likely underwritten by those same big banks to do this??!! The quid pro quo for the banks underwriting the activities of the two main political parties is that the politicians will ride to the rescue of the bankers when they f**k up! So in my view the only way it'll change meaningfully is when Americans decide not to pay their taxes or at least make a credible threat not to pay their taxes.

Ironies in the Financials

It seems like the US banking sector is in for some longer term pain. I say that because of the whole slowly unravelling story about option ARM mortgages. perhaps WFC is in a better position than most since it didn't get into that line, and hopefully it doesn't own much paper based on such mortgages. But I read a bit the other day that suggests that banks in the Gulf Cooperation Council (GCC) are thriving largely based on petro-dollars. So far it looks like Asian and Middle-Eastern banks are relatively strong, but who knows with the whole unwinding of leverage that'll occur over next years. Perhaps its best to look at the most conservative of banks too, like some Canadian. Or of course just sit out of the whole sector if you're looking at the long side of things. Of course, you can play the down side too, which in this environment could be rather profitable.

Goldman: Readying Short Position Initiation Sequence

It's true, it's not the easiest short. But when the GS magic wears off and it has to delever its pretty massive leverage, look out below!