Eric in IL

An Unconventional Option - Go Long Financials

Why chase the last 5-10% of the financials downside, there is way too much risk to be short financials. Everyone is taking action to help the banks, and as time goes on, they are gaining tons of deposits. Everyone ignores the power of deposits and the fact that real interest rates to end consumers have actually come down. Mortgage units are collecting tons of fees on refinancing. These guys are still gonna write-down billions per quarter, but they are getting enough other revenues in to offset them. Jumping in to SKF is really dangerous here. There are only so many times you can go to the well. Just think if GS or JPM or BAC pays back TARP funds. There will be a huge rally (even f it makes no sense), short squeeze will kill you.