Schweizer

Banking Uncertainty - It's Back

It's clear taxpayer money dumped on AIG was funneled to the banks that gave them a 1Q windfall coupled with the various accounting tricks played by all the big names, all of which resulted in the rope-a-dope of hope rally.

It's over. Banks sold into it to build some capital as the Gov and Private investors are not going to provide lifelines to them going forward.

Let nature take it's course. Most of these big banks are insolvent and most need to diappear in favor of start-up banks that are not inherrently corrupt.

Investors will not step in to buy these big banks until a true bottom is reached and several big banks are gone; 666 was not it.