Thursday, September 18, 2008

Banking Liquidity


I said in one of these prior banking bottom calls by the clowns on Wall Street that one of the things I model is banking liquidity and there were no signs of any bottom. Do we need any more evidence? State Street has dropped from $65 to $30 today. Quantitative data trumps clownish opinion all day long.

Update: Oops, the just UK banned short selling and now the financials turned on a dime. Of course, short selling isn't the problem so banning it really accomplishes nothing longer term. Although, there appears to be a tremendous amount of naked short selling, which is illegal and may contribute to manipulation shorter term. But, that should be no surprise. Your government helped create this environment.
posted by TimingLogic at 1:16 PM