Round Trip

Just wait till tomorrow
I guess that's what they all say
Just before they fall apart
--New Order

Ugly day as banks really fell apart, with BKX down 20% on the day.

With today's performance, the BKX completes an amazing round trip that finds in back at early 1995 levels.

Combine the Royal Bank of Scotland (RBS) near insolvency with today's State Street (STT) earnings warning, and perhaps market participants are connecting dots towards what may be the inevitable nationalization of the banking system. The Bank of England seems ready to roll.

I have no inclination to bottom fish this group, as the nationalization scenario could take equity (and associated dividends) to zero.

no positions