Man, if there is one “canary in the coal mine” to watch, it’s “Bonnie Mae”. (Note: If have dubbed Bank(rupt) of America “Bonnie Mae” because I’m convinced that Uncle Thug is gonna have to take her over and turn her into a “banking GSE”, similar to the previously-failed Fannie, Freddie and FHLBs. Also, I have dubbed Citi “Charlie Mac” for the same reason).
And this particular bird is currently hanging on by one claw, about ready to drop to the bottom of the cage.
Just have a look at today’s action in Bonnie’s stock, and you will find everything you need to know about what the stock bagholders of this ailing bird think about her future prospects. (Hint: a funeral in a cardboard shoe box looks imminent). Here is the link:
With Bonnie getting pounded down by over FIVE-PERCENT, even as I peck out this missive.
(Spock Conclusion): Keep your eyes on this one, folks. For, as goes Bonnie, so goes the entire banking sector.
Now the only question that I have is this:
Will Bonnie even survive through this week, or will the Fed and Uncle Thug have to nationalize her before the “A-Holes at the J-Hole” meeting on Friday?