According to Senator Jim Bunning of Kentucky, Bair told lawmakers at a private meeting on July 16 that 500 more banks are at risk of failure “unless something dramatic” happens. An FDIC spokesperson, though, quickly denied that Bair ever made the remark, claiming that Bair gave “no estimate” of the number of anticipated bank failures. (See: http://www.bloomberg.com/apps/news?pid=20601103&sid=a8SeuFzxr6I8)
While Tyler, Marla and this blog's other naysayers were busy stroking each other’s negativism with yellow dishwashing gloves, this important positive economic news went practically unreported unblogged at Zero Intelligence for more than a week. Why? Because as a healthy manifestation of the creative destruction of capitalism, the hundreds of upcoming bank failures don’t comport with ZI’s glass-entirely-empty perspective. As more banks are destroyed, more opportunities are created for the offshore arms of private equity firms to recapitalize the banks and flip them for a quick profit – the essence of capitalism in the public interest. Ergo, the more banks that fail, the healthier our financial system is. Savvy investors realize this, which is why the price of Direxion’s 3X Financial Bull ETF (FAS) has skyrocketed recently from $8 to over $51 (reverse 1:5 split, schmeverse 1:5 split).
ZI, is it any wonder you don't matter to CNBC?