Famed Short Seller Warns Countries May No Longer Be Able To Bail Out Their Banks
KingWorldNews.com
March 24, 2016
With many people wondering what’s next for the markets, today a famed short seller warned that countries may no longer be able to bail out their banks.
By Bill Fleckenstein President Of Fleckenstein Capital
March 24 (King World News) –Overnight markets were all 1% to 1.5% lower, and the SPOOs declined in sympathy, although once trading began in New York they rallied off those lows such that by midday the market was just modestly weaker, led by the S&P, which lost about 0.4% as it was led lower by the financials, which were once again quite weak, especially European banks.
Imbalance Sheets Is More Like It
For those who don’t know, many of those institutions — e.g., Credit Suisse, Deutsche Bank, or UBS — have balance sheets that are so big it would be difficult for their home countries to bail them out. However, that weakness had little bearing on the Nasdaq, which just barely declined.
In the afternoon, the indices managed to trade back to essentially unchanged. Away from stocks, green paper was slightly stronger, fixed income was slightly weaker, oil was flat, and the metals saw small losses.
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