Banks Are Getting Battered

Tyler Durden's picture

US financials stocks are down 3% from Friday's exuberant post-earnings opening highs. That is the biggest drawdown since the election with BofA, JPMorgan, and Goldman leading the downturn (down almost 5% from Friday's opening highs)...

Sell-the-earnings-news...

 

As suddenly investors realize there was no curve steepening and there was no NIM surge...

 

And credit markets might be right after all..

 

The question is - has BofA (JPM, GS, WFC) gotten ahead of itself? Well, readers can decide on their own...

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joego1's picture

Drag em up, shoot em down. Look at the dead Muppets aahh....

Bay of Pigs's picture

Anyone else think something really bad is about to happen?

DogeCoin's picture

Oh yeah, sell the Inauguration.

Soul Glow's picture

Trump either kept Goldman in charge of the Treasury because he is acyually an insider of the elite NWO or he is clueless as to their plans.  Either way, the doom trade is at hand again.

DingleBarryObummer's picture

SNOWFLAKE ALERT!!!!!! YOU NEED A SAFE SPACE, LIBTARD?!?!  Hillary likes snot AND boogers!   lololololololollercoaster.

1980XLS's picture

What is Bad?

Obama gone in 3 days. Things can only improve from here.

NugginFuts's picture

Can't say that I think it, but I sure hope so.... After the Moon Shot these stocks have taken, a dose of gravity would be healthy.

SheepDog-One's picture

Why, whatever do you mean, Ike? I just felt like a Tombstone reference.

Albertarocks's picture

Yes.  The planet has never been is as much danger as it is *right now*.  Having said that, I also think there are a lot of bright spots.  For one thing, the global banking mafia might be in big trouble.  Of course that also would mean we all are.  But if the bankers all get what they deserve at least humanity might come out the other side of it in pretty good shape... after some pretty dark years.  But 'something' is definitely in the air.

Batman11's picture

The trouble is I have been thinking that for a long time.

The longer the charade plays out the worse is it will be in the end.

Central Bankers chuck in trillions and can only manage secular stagnation.

Wealth – real and imaginary.
Central Banks and the wealth effect. 

Real wealth comes from the real economy where real products and services are traded.

This involves hard work which is something the financial sector is not interested in.

The financial sector is interested in imaginary wealth – the wealth effect. Hardly any of their lending goes into productive lending into the real economy.

They look for some existing asset they can inflate the price of, like the national housing stock. They then pour money into this asset to create imaginary wealth, the bubble bursts and all the imaginary wealth disappears.

1929 – US (margin lending into US stocks)
1989 – Japan (real estate)
2008 – US (real estate bubble leveraged up with derivatives for global contagion)
2010 – Ireland (real estate)
2012 – Spain (real estate)
2015 – China (margin lending into Chinese stocks)

Central Banks have now got in on the act with QE and have gone for an “inflate all financial asset prices” strategy to generate a wealth effect (imaginary wealth). The bubble bursts and all the imaginary wealth disappears.

The wealth effect – it’s like real wealth but it’s only temporary.

How much real wealth did those Tulip bulbs contain in 1600s Holland?

With bubble bursting interest rate rises, the fun is just beginning.



 

quasi_verbatim's picture

Yellen escorted out under armed guard. Bad? Good?

bluskyes's picture

If she was in cuffs, then good.

silverer's picture

Which one of the three dozen or so things were you pondering?

jamesmmu's picture

Anyones shorting here? just curious

shizzledizzle's picture

Well, I got some DIA and QQQ march expiration puts in but more for a 401k insurance policy.

Citizen_x's picture

 

Put your tinfoil hat on before you read this....

Us small fries see the short interest report once a month,...it's seems ALGO's get the short report in real time. The squeeze is it's front-running programing.  Rinse and Repeat to Team Lego's theme song " Everything is Awesome ! "

silverer's picture

Shorting is like betting the Titanic would hit an iceberg when it set sail. Nobody believed the Titanic, like the market, would go down, but we know better. Timing of course is everything. A friend of mine, an experienced trader, got burned several times trading short recently. He still does OK, but was looking toward "the big event". The logic was right, but the event just didn't happen. Yet.

shizzledizzle's picture

It's all good... Volume is tapering off nicely for the run up to close.

Bam_Man's picture

The yield curve has gotten as steep as it's going to get.

In fact, it's been flattening - slowly but steadily - since mid-December.

This (steepening yield curve) was supposed to be the "big moneymaker" for banks in 2017.

Maybe now, not so much.

 

wholy1's picture

Not to worry!  Inso far as the "Fraud/Feral Preserve" - NOT "federal/gov, NO "reserve" - is still a "relevant player", the banksters can "resort" to the "lender of [usual] last resort" with more FRN filthy lucre "digital debt-credits".

spastic_colon's picture

so the 5% runup in indexes attributed to the banks will now be a .000002% downturn...attributed to the banks??

silverer's picture

It's bad news when banks get battered, because you know the taxpayer will always be compelled to ante up at the end of a gun, if necessary.

Silver Savior's picture

It's of no use. Banks are like a 40 year old beat up Japanese car that won't stop running!

DavidC's picture

Yeah, right, and my charts, at the moment, the Dow is 3 points down on the day. Come on Tylers.

DavidC

JBPeebles's picture

Guess who called the pump'n'dump. More prudent investors would have perhaps heard me explicitly tell them not to play the Trump trade as there was too much political risk, and to hold off from investing in this kind of market.

I may  not mention how great I am 75 times in my equivalent of a Presidential adieu, but surely every once in while I'm entitled. Maybe it's all the money they pay me...all none of it, at least that on which you'd pay taxes or have to convert to fiat. Instead it's just a number that grows higher almost every day now.

Please go back to your day job as most of you will not last in a volatile trading environment. If you are counting on this for your income, I sure hope you don't have a family. Have a backup plan. Mine was Japan. You can teach in Asia and live cheaply if you know what you are doing. I speak from experience. Then maybe you can wait for the bankruptcy to clear and get a fresh start 15 years later.

This is the big leagues people. Don't put your family at risk! You need a sure thing in times of radical market and political risk. What could be better than a true measure of wealth--gold? Why play the markets and try to accumulate wealth if you can have wealth and simply store it safely?

Gold is what the banks aren't. It isn't fiat money. It can't be created in vast quantities. There's no delay in market information related to supply, as there would be in a rigged market that front-runs participant trades. Be aware of how the system works--you ride a horse for your sustenance that has no loyalty. Dollars don't go the just, or better prepared, they have a way of flowing in unpredictable directions (Rollback.) It'll throw you off and into the gutter. In the aggregate, it's an uncontrollable political monster that feeds off more and more money (liquidity trap). It's a false god.

What you focus on grows in importance. If money is your sole focus, then the love in you slowly dies. Perhaps worse than any financial sanctions is the price to your soul of loving money too much. These bankers and the globalist love money not people and it shows. It's time to take back the country and destroy anyone or any group of people who represents a threat, foreign or domestic.

 

Silver Savior's picture

I believe in gold but to a larger extent silver for wealth preservation. Sure as hell is not the dollar. Good post.