Alex Sebastian

Is the U.S. Banking System Safe?

The recent spike in financial stock after earnings is similar to all the previous spikes, except of a greater magnitude. Everyone thinks "oh wow they really threw in the kitchen sink this quarter" in relation to the banks' writedowns, and then as things continue to grow worse, everyone realizes the banks are going to have to take bigger and bigger writedowns and the whole sector gets s***kicked for the rest of the quarter. Buy some September or October puts, that's my advice.