Financial Core Nearing Free Fall ~ The Risk Averse Alert

Tuesday, May 29, 2012

Financial Core Nearing Free Fall

Right on cue, the Chairman of the Shadow Fed, feet firmly planted in fantasy land where euro bonds is the name of the next shiny can aiming to keep the EMU alive, took to the airwaves tonight to commence application of needles to the Angela Merkel voodoo doll. No doubt, there isn't a board of directors of a too big to fail bank working that doll like it's a clogged air filter.

And why shouldn't they? Gasping for air is a condition adequately describing stock price action for investment banks these days. Take Goldman Sachs, for example...

company chart (GS)

What a nightmare. This stock is poised to be destroyed and it is not alone. What's more, all the "faith" put in the financial system's backstop has had a good couple years now showing itself rather thin. Just like 2008, then, the market's leadership is sure to melt down as the core (i.e. finance) further disintegrates. Indeed, this end appears imminent judging by the technical state of a blue chip financial like Goldman Sachs. How ironic that, Greece — Goldman's mark — could be the one to lunge a dagger straight into the trans-Atlantic banking system's heart.

Fast Money
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