Yahoo! Finance ran an article on the banking problem in light of IndyMac’s failure. Which bank could be next?

Months ago some of these morons in the banking industry were saying the worst was behind, their Ok, blah, blah. And the talking heads were happy to nod their bleach blond hair and tell you to buy stocks.

I shake my head that I did the prudent thing and took some profits on UltraShort Financials (SKF) and today it closes over $190/share. Just a few weeks ago it bottomed at $89. This was a Bud Conrad call in International Speculator last fall.

If I would have had the brains, guts and you know what else to short the bond insurers, Fannie & Freddie I’d be on cloud 9 right now with all of my profits.

Folks, you need good information and you won’t get it on TOUT TV (CNBC or whoever). Yes, you might have to pay a little bit for it. Big picture info comes from the new Casey Report which used to be part of International Speculator. They did a 2 for 1 split, in the parlance of the industry, on July 1st and subscribers at that date get the new one for free.

Some publications are worth every penny. These from Casey Research definitely are.

The Swiss money managers I’m in contact with have been saying the same thing for months also. These banks are in trouble and some will be sacrificed while others will be saved. And there is no good way to know which is which.

Any broker or advisor who has been telling you to buy banks stocks cheap or bottom fish the financials I personally would dump like a used Kleenex.

And if you are a large depositor, don’t put over $100k in any bank. The FDIC is going to use $4 - $8 BILLION to bail out just IndyMac and IndyMac is NOT one of the 90 on the FDIC’s list of potential problem banks. How many of those 90 are yet to fail? How many others that weren’t on the list are yet to fail?

No one knows; but some sources of investment advice are good, most are not.

What this blog is about is finding the good ones and warning of the bad ones.

And you can bet that when Bud Conrad speaks, I listen. When some stupid brokerage house speaks, I’ll either ignore them or do the opposite.