Is there a better freaking job than a bank executive. When times are good, you lend, wine and dine recklessly. When they are bad, you keep your job and pocket FED money while doing nothing. You wait. You wait some more and than when the spread is disgusting again, only than will you dip your toes back in the lending water.

Basically, the government subsidizes you. You add no value to the system. You are catching up to lawyers and fast.

Silicon Valley has technology, in Arizona we have Lifelock, Golfnow and Banks…lot’s and lot’s of banks. Fred’s Bank, Joe’s Bank, SubbyPrimy Bank of Scottsdale..even I may start one for dogs in order to get in on the wicked low fed funds rate.

I can’t believe how out of touch the FED is. The banks are not lending. I have friends at many small start up banks in Arizona. They are shellshocked. They know they have good businesses and control what can happen, but they are just as panicked as the guy who bought Apple at $200 thinking it could only go to $300. The FED assumes that Frank’s Sub, Pizza and Subprime bank and drive thru will pass on those great low rates.

I love the way the market closed today. Rate cuts are not the answer. I knew Amazon could not hold as well and I twittered halfway through the day that I was lightening up and buying Puts. I was also buying SKF – the double inverse financial ETF. Thank goodness. Amazon can’t save this moody beast of a market nor can any one stock or earnings report.

We go lower and that just makes sense. I hate it more than anyone, but the cycle must play out and we are letting dimwit economists and CNBC fool he public into thinking the market is not a leading indicator.

Disclosure – Long SKF and Long AMZN stock and Puts