Lot’s of yabbering on CNBC by Mr. Cramer about the end of the banking system. With all due respect to the godfather of financial blogging, shut up! You were just calling the banks a buy over 1,200 Dow points ago. I promise you nothing has changed except the view of the world with egg on your face. The banks have been dead for 2 years, just no one cared to really look.
Soren has the perfect visual summary of the mess in my last post. The mess comes from poor management and regulation.
We have been sloppy. The KEY to a lasting bottom is not MORE regulation, but the RIGHT regulations.
Boutique investment banks could/should sprout to solve the problem, but not if regulations are put in place to make it impossible for boutique banks investment banks to sprout.
Todd Harrison has a great post about why Wall Street will never be the same, but he understands that it COULD be a good thing.
You should understand that this will take massive amounts of time and there is no rush to buy stocks today or tomorrow. serious structural dmages are at hand. Furthermore, there is a GIANT disconnect of value. Wall Streeters think they are worth 200-400k a year. That world is done.
The start-up world pays equity. To accept this reality, the Wall Streeters are going to need to cut back. We are all going to need to cut back. Those cutbacks are not factored in to the market by a long shot.
We could rally at any moment, but stop chasing that rally. Focus on the big picture right now. That big picture is in complete disarray so you better be fucking sure you see it clear if you want to plunge. If you are looking at charts and CNBC and Cramer for clarity, all you are doing is making my life and job easier.