Schweizer

Why This Rally Is Unsustainable

The Treasury should not be allowed to buy/trade equities.
The FED should not be allowed to buy/trade equities.
And banks (GS in particular) should be limited in their ability to buy/trade equities.

These 3 are too large to allow a fair value to be set.

Or are they already trading illegally but there is no one with balls to stop it?

All Shoes May Drop for the Banks

Probably the most concise and defendable article posted here in weeks.

Well done, and thank you.

Lehman Is Just the Thin Edge of the Wedge

Any business fundamentally based on leveraging debt is a house of cards. All those invested in it, debt holders included, need to experience the other side of the trade (a loss). It's about time.

It's pretty certain little can be done to prevent a systemic collapse of many financial institutions, and, like before, the way to begin a recovery will be by printing money, which is highly inflationary. Ben is warming up the presses again and has ordered red ink this time.

Wells Fargo, which is considered one of the more healthly banks, and was snubbing this crisis as recent as July with it's remarkable 2Q report, has quietly been raising capital at 10%! They all live in a house of cards, and the winds are picking up.

S&P 500 Financials - Best and Worst of the Week

So why is the index holding up, including the XLF, with all these heavies getting killed? I don't get it!