Bad News for Bank Stocks

In my latest column for DailyFinance, "Banks: Time to Take Money Off the Table," I talk about why now is not the time to invest in or own bank stocks. Aside from anything else, history suggests the sector tends to lag when interest rates are rising, which seems likely given rapidly deteriorating supply-and-demand fundamentals in the government bond market. The following chart illustrates the point:

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Comments

[mmmm]

but interest rates went so low and even "high" rates by todays standards hardly let savers break even and it could take so long to get to a rate that makes investing or saving with government or most banks and keeps up to real inflation like that with bubble priced housing or food or health care or taxes or gasoline or energy ect..ect..ect nonsense....and the changes that made the fractional reserve not needed by banks to lend so they can print up debt dollars at will.

[Mathew Bracken]

This is such an important topic, thank you so much for sharing.