Thursday, February 19, 2009

On Short Time

Bank stocks are taking it in the pants again, and as the number crunchers at CNBC will tell you, those stocks are being deliberately sold short. At the top of the list of banks being sold short over the last year? Fifth Third, Citigroup, and BoA, along with Goldman and JP Morgan rounding out the top 5. This is bad, bad news for these banks, it's becoming a self-fufilling prophecy that these guys will go under soon.

Of course, self-fufilling prophecies still can be the complete and utter truth: these banks are insolvent. It may be a matter of only weeks before we have another late night Sunday session of Deal or No Deal, and I'm thinking 5/3 may be the next contestant.

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