Traders need to be positioned so that "surprises" are in their favor, which is NOT the case with financial stocks in the US. One day, sure, but it's still way too early.

Quick note discussing timeframes and why it's critical to be specific. Also discuss why I'm not buying US financial stocks. Original article written May 23, now in archives.

This article looks at why the ratings firms should act now to repair their reputations by doing broad based downgrades. It also examines the effect this would have on GSEs and the capital adequacy ratios of many financial firms. It points out the disconnect between the rating's firms own loss projections and the ratings they have on AAA tranches.