The financials has corrected quite a bit over last week. Besides all the secondary issuance, the confusions of new capital requirement regulation also played a role.It seems the new requirement will start in 2012 not 10 years from now. It will decrease the earnings for the banks but the risks will drop as well. Conservatively managed banks will win in this environment.
Health care reform has passed the hurdle in U.S senator. I do not see how government can manage their deficit given all the entitlements and never-end stimulus. Eventually, the market will force the hand of government by much higher interest rate. When this happens (it will), things will turn ugly.
No comments:
Post a Comment