There was a time not that long ago when we would be watching every tick down of Deutsche Bank (DB) , making a crisis of every euro decline. I could see people coming on air, the same people we are used to seeing talking about Black Swans and Lehman Brothers and complacency and a whistle through the graveyard. We would be hearing about how Merkel will do nothing and this storied bank would go down taking the whole German bank edifice with it, and then, of course, the rest of Europe.
Or how about Monte Paschi. Here's the oldest bank in the world, some would say the face of the world's third largest bond market, clearly insolvent where people are afraid to put more than 100,000 euros in overnight for fear of failure. Because states can't bailout their own banks because of the jackboot of the EU, Monte seems doomed even after last week's alleged rescue. You could easily see tales spun about a new recession in Italy and an Italxit or whatever the newshounds might want to call it.
We could easily still make the cases for failure of some British banks, or other European ones. How is Royal Bank of Scotland (RBS) going to get out of this alive? And Credit Suisse (CS) ? Does that one feel like it is worth owning?
But it's not happening and, frankly, I can't tell you why it isn't. I don't know why the usual people in the media and the usual big time short-selling hedge fund managers aren't cooperating in some giant gang tackle of news story of the failure of European banks and what it means for JP Morgan (JPM) , Bank of America (BAC) , Citigroup (C) , Goldman Sachs (GS) and Morgan Stanley (MS) . I have become so used to having to say not to worry that now I am worried that I don't have to say not to worry!
In fact, I ponder what these banks have to do with the faltering price-to-earnings multiple of none other than Bristol-Myers (BMY) . (We have the definitive rap in BMY if you want to read it as it was a name we were looking at for Action Alerts PLUS.)
One thing's for certain, after this article I am sure someone will take up the cause. It resonates all too well for it not to happen!