Flash back a month ago. If the market was up one day, the financial stocks were up huge. Go back four months, and on days when the market was down, the bank stocks got crushed.
Now you hear barely a peep out of them, even during what’s been a pretty volatile period. On Tuesday, when markets roared higher, they made fairly modest moves. Then yesterday, when the markets tanked on concerns that the lenders TO THE UNITED STATES GOVERNMENT were getting cold feet, they didn’t sell off in any spectactular form.
The government has went ahead and killed financial volatility by propping up all the major players, ensuring that they can’t lose too much (nor make too much). It’s not like there isn’t bad news, between horrible housing numbers, worsening expectations of credit card defaults and a mortgage market that’s slammed into a wall. But really, nobody cares anymore. They’re zombies!
If anything happens to them, it won’t be due to anything on their end, but the insolvency of their prime benefactor Uncle Sam. But if that happens, well, then, we’re all pretty much done for.