The Loan Mod Scam and the Range-Trade for Financials
I expect the financials to range-trade. If bank stocks collapse the administration will immediately make soothing noises, as Geithner did earlier this week when the market feared that the “asinine” (the term used by the president of Wells Fargo) stress tests would force a new round of shareholder dilution and stocks went into free fall. A collapse of bank equity could take down the insurers, and perhaps also the government of Great Britain. As soon as financial stocks look stable, though, Washington will go back to its tinkering, interventionist, populist impulses and mess things up again. It’s sickeningly predictable.
Source: blog.atimes.net
