The bears are loving life. Good for them.

They have much to be excited about if they are in the financials. The key questions is….Will it Spread? ( I would love to BLEND a few bankers :) )

China, India, Mexico, Malaysia and even Russia are hanging in quite well thank-you.

You would think those countries would be imploding but they are not…yet. Don’t they need a strong and liquid Goldman and Merrily Lynch?

I was reading tonight that there is a $33 billion PILEUP of unsold bonds and loans for funding acquisitions and that is what is driving away investors from the debt of Goldman and friends on Wall Street. More important, banks have promised a whopping $300 BILLION in debt for leveraged buyouts announced this year.

That’s the pain in front of us…THEY WILL BE BREAKING PROMISES!

Yowza…those are big numbers people.

The trader in me wants to pile into the countries above from the SHORT SIDE. They do need a liquid Wall Street and they don’t have one right now and based on these numbers, won’t for a while.

Disclosure – Long EWM