Eric in IL

5 Reasons Bank Shareholders Will Take a Hit

A lot here is overbought here, I am hesitant to get long, but also hesitant to be short. I would rather wait for a correction (there will be one). There are certain pairs trades that I would consider. Short Gold, Long Platinum. Short Citi, Long BAC (I would rather wait on this one after BAC's run-up).
The one I am very excited about long-term is Long V, Short AXP. V is the debit leader, has no credit risk, and is not cannibalizing its business. AXP is clearly hurting and pulling credit for creditworthy clients. They must have serious cash flow issues.

Thain Calls Lewis a Liar: BofA Saga Continues

Don't trust Thain farther than I can throw him. Guy has shown that he is looking out for himself only. He is probably just trying to avoid lawsuits now.
I look at Lewis and see that his mistakes are no worse than anyone else's in the business. BofA may be the only business that has added to their ability to generate growth going forward. While Citi is selling off most of their business, BofA is actually expanding.

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.