The TBTFs Have Take Out Almost All Their Post-March 2009 Gains

Phoenix Capital Research's picture

While the European banking collapse is grabbing the most attention, the US banks, particularly the Too Big To Fails are showing serious sounds of distress as well.


As you’ll recall from previous  articles I’ve written, the TBTFs are the institutions most favored by the Federal Reserve and Treasury during the bailouts/ interventions of the last four years. With the greatest derivative exposure, the greatest leverage, and the greatest toxic debts on or off their balance sheets, these firms provide a glimpse into the US financial system’s inner workings.


With that in mind, I want to draw your attention to the fact that all of these firms’ share prices have recently dropped below their critical support lines established during the relief rally following the market bottom in March 2009.


Here’s Bank of America:



As you can see, the market drop of August 2011 has brought shares of BAC below the support level established by the first major rally coming off of the March 2009 lows (when the Fed first announced QE 1).

The same is true of Citigroup:



As well as Wall Street darling Goldman Sachs:



Indeed, the only TBTFs that haven’t fallen below their post bottom support lines are JP Morgan and Wells Fargo. But by the look of things, they’re both going to break down soon:



And Wells Fargo:



These charts tell us in no uncertain terms that the US financial system is once again under extreme stress. They tell us that the market is going down, down, DOWN over the coming months.  We're going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.


Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What's coming is going to make 2008 look like a joke.


If you have yet to prepare yourself for what’s coming, now is the time to do so. Whether it’s by moving to cash and bullion, opening some shorts, or simply getting out of the markets altogether, now is the time to be preparing for what’s coming (remember, stocks took six months to bottom after Lehman… and that was when the Fed still had some bullets left to combat the collapse).


And if you’re looking for specific ideas to profit from this mess, mr Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.


Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008).


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Good Investing!


Graham Summers


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riley martini's picture

 It would be no surprise if they failed without more welfare . All the TBTF have done is take bonsuses pay bribes and in return they dump $trillions of bad loans and bad bets on backs of the American people . The TBTF should have failed in 2009.

cdude's picture

Actually, he TBTFs should have failed in 2008. In a greater sense they "failed" to be responsible financial institutions after the glass-steigel restrictions were nullified and the whole MBS scam was birthed.

AldousHuxley's picture

Bernanke is with #OccupyWallStreet


"I think they're really touching a nerve," Sen. Bernie Sanders said Tuesday of protests on Wall Street that have inspired demonstrations from Burlington, Vt., to Los Angeles. "The nerve is that the average American understands that as a result of the greed and the recklessness and the illegal behavior on Wall Street, these guys plunged us into the horrendous recession that we're in right now." Even Federal Reserve Chairman Ben Bernanke allowed that there was "excessive risk taking" by Wall Street when Sanders questioned him on Tuesday about the root causes of the recession and the concerns voiced by protesters. "They blame, with some justification, the financial sector with getting us into this mess," Bernanke told another member of the Joint Economic Committee. "I can't blame them," he added.


The Great Bernank, let these TBTF banksters fail and world will start anew.

prophet's picture

Posting two week old marketing collateral gets you contributor status.  I guess contributor has multiple meanings.  

juggalo1's picture

I need a little bit more context on why the line you drew is significant.  How is that support?  It looks like just an arbitrary line to me. It doesn't look like it marked a major high or low, or a change of direction or a point the market bounced around for long.

Fíréan's picture

 Yes the markets are crashing , time to make a profit, whoop dee doo.Just what we've all been dreaming about.

Sounds like Alessio Rastani.


People are looking for SOCIAL CHANGE, not SPARE CHANGE! Smart money is on withdrawing EVERYTHING you got tied up in a bank account of any description. Invest in lead, copper, groceries, solar power, firewood, community, and claymores. 

SwingForce's picture

Hey how about PNC? Owns 25% Blackrock?

Buck Johnson's picture

BOA is done, BOA is done.  They are doing everything they can to stop people from moving their money out.

ozzzo's picture

You mean, like, charging $5 to use your debit card? I think you mean to say "They are doing everything they can to self-destruct as quickly as possible."

dcb's picture

I've been a bit ctitical of your posts, not enough ifo of where you get your ideas, or support of them. Much better.

now, I didn't buy into the first rally, and admit have put some money to work into the financial sector now that they are down so much. I'll trade ultra short financials as a hedge, yeah not the best, but good.

I look at tlt trading at the height of the financial crisis, wonder how much higher they can go, so that's why I am thinking now is the time to be buying on dips. I also admit doing vanguard european etf. with currency hedges. in general I try to trade the charts as a weekly. got stopped out of the shorts today (twice actually), but, I was buying at the open this morning, not too bad. we shall see?

the shorts has a stop loss, where I sold at the open, bought lower, as the market turned around (dropped) in the after noon (not at the bottom, raised my stops and too a nap. (sds at 27.00). sco at 68.86, eev at 49.00, tlt at 123.

dcb's picture

oh, sold 1/2 my uup yesterday, didn't stop out fully today (22.37) i it gaps, fine, I'll eat it and put the stop back at the weekly low. likely if that happens to put some buy stops on uup as well again.

Sambo's picture

Great rally in the stock market. I wonder who bought all the stocks?

metastar's picture

Of course the FED supports the TBTFs. The FED is the TBTFs! That is the problem which must be resolved if we are to restore freedom and capitalism to this country.

pitz's picture


jmcadg's picture

Read to the word 'joke'. Then switch off.

Conax's picture

I just tamped a big bowl of hopium and reached for a light, then I read this.


williambanzai7's picture

Good investing indeed

malusDiaz's picture

Do you want to Occupy Wall Street?  Then withdraw 100$ in change and do something about it.


Do you REALLY want to Occupy Wall Street? Then spread the word and withdraw 200$ in change.