My prediction is OMG, I’m either going to have the best or worst day of my shorting career. I have quite a few XLF puts.
In a logical world spreads on treasuries would blow out and stocks would shit the bed. This is not that world.
Short term I wouldn’t even hazard a guess. This is bad for financials, very bad. Bailouts seems like a good idea, but the underlying implication is that the finance industry is not just unstable, but in danger of collapse.
Note to Rich, this IS inflationary. The only question is, will the bond/currency markets react?
