Quote from The Kin:
I think your conclusion may be flawed. For one, why not have a banking index chart against the S&P rather than new lows for the week ending. Secondly, if the stock market goes down, it could be considered as good news for banks which may benefit from a lowered fed funds rate.
I guess if we want to get more theoretical, banks should benefit from significant stock market declines as debt would be the preferred financing over equity.
having worked for a bank, I will tell you a lower fed funds rate is not a benefit.
A lowering of the rate is usually too late to respond to an overall downtrend in the economy. How many times have we seen one move? Its starts with one and then we have 5 or 6. A downtrend that started by aggressive lenders extending to much money to companies that couldn't foot the bill. They then slash employment to cut costs (too try and make interest payments on said loans), which cuts the disposable income of middle of America to buy product, which leads to more cuts and slashes and an eventual bottom but it never comes with one cut.
buying into the first (of many) fed cuts. stupid.
selling into a fed raise (of hopefully a few). even dumber. If those educated, never worked a real job, mf'ing "economists", see the economy is on the rise, then you sure as shit should.