6/18/08

Executive Summary:

• Relatively benign stock market index performance is masking severe financial weakness
• Judging by their stock charts, several good-sized banks might file for bankruptcy soon
• Financial market liquidity supplied by the Fed is at odds with their words that "credit market conditions are improving"


• The assets of the banks under duress are many, many multiples of total FDIC assets

"Pay no attention to the man behind the curtain!" barks the booming voice.

Unfortunately for the dumpy, balding ‘wizard,' the curtain has already been removed and he's been spotted.

The first two weeks of June (2008) have been all about knowing where to look. Let's peel back the curtain.