Bullish On Banks

The system is designed for them. They control our capital and our markets. The people behind the curtain, the Banks.

We haven't seen inflation because the money never trickled all the way down to us plebs. Aside from massive corporations on Wall St. The money is sitting in the vaults.

[T]he Fed has been paying the big banks high enough interest on the funds which they deposit at the Fed to discourage banks from making loans. Indeed, the Fed has explicitly stated that – in order to prevent inflation – it wants to ensure that the banks don’t loan out money into the economy, but instead deposit it at the Fed:

Why is M1 crashing? [the M1 money multiplier basically measures how much the money supply increases for each $1 increase in the monetary base, and it gives an indication of the "velocity" of money, i.e. how quickly money is circulating through the system]

Because the banks continue to build up their excess reserves, instead of lending out money:

http://www.washingtonsblog.com/2013/06/81-5-of-money-created-through-quantitative-easing-is-sitting-there-gathering-dust-instead-of-helping-the-economy.html

If the fed does in fact raise interest rates, the game has been set up for the Banks to profit immensely from their massive cash hoards.

If this merciless one way Bull market is to continue unabated, let us profit from TPTB that finance it!

Financials

The Risk to financials is the blowup in energy. Im not sure how a wave of defaults in the high yield credit market will affect the creditors yet..