Following a failed Italian referendum and downgrade of Italian banks, the most systemically risky bank in the world, according to the IMF, just gained 10%...In other words, the most shorted bank in the world...
Is up almost 100% from the lows...
Let's not get too excited...
While still being down over 90% from the highs, thanks to the "wonders" of compound mathematics, which has buried the majority of investors throughout time...
No surprise, small banks helped the Russell / Dow ratio backtest the downtrend line...
Capital One filled its gap from a year ago...
All very bullish...
Volume was the lowest since the last two times the S&P rolled over (Thanksgiving half day is circled)...
Dec. 6, 2016
Author of "The Big Short":
Trump Wants To Roll Back Banking Regulations To 2008
Trump's incoming administration is already talking about rolling back portions of the Dodd-Frank banking regulations and weakening the Volcker Rule, which restricts U.S. banks from making certain kinds of speculative investments with their own money.
Lewis, who wrote about the financial crisis in "The Big Short," said what "terrifies" him is the possibility that capital requirements on banks will be reduced.
"If things go well, traders keep the money and if things go badly, it becomes the taxpayers' problem"
