According to Bruce Krasting's blog: “ I’m listening to Cramer, Roach and the other talking heads on TV. Bottom line from these folks is that the market's a buy. China is not going to have a hard landing says Roach, and according to Cramer THERE WILL NOT BE ANOTHER LEHMAN.Listening to pundits will get you nowhere. China is not going to have a hard landing says Roach, and according to Cramer THERE WILL NOT BE ANOTHER LEHMAN.
It’s getting impossible to figure what will happen next in this world. Lehman went bust in a matter of days. The end came after the stock broke $5. When a stock breaks $5 there is a pretty decent chance it is headed to zero. Institutional holders (there are a ton who own this dog) HAVE to off load stocks when the $5 level is breached.
I think that BAC should not trade under $5 based on their book. But that makes no difference at all. “Book” and “logic” have little to do with what is going on today. The problem is that everyone understands the market dynamics. In the present climate the market players will push BAC, knowing that long-term holders will be forced to sell if the “players” prevail.
But to even think that there is a “0” chance of another TBTF failing is just cheerleading. There are at least a dozen EU banks who have had their stocks collapse. Their market cap value is less than 1% of assets.
The “Short Ban” in Europe is forcing global investors to take defensive positions in bank stocks where trading is not restricted. This is just adding to the selling in the US financial names…
Read more: http://brucekrasting.blogspot.com/2011/09/13-cents-away-from-problem.html#ixzz1YhK3Jyp3
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