best way to short play commercial banking

I don't know where you're from, but in St. Louis, it has looked like election day for months and all the signs say "Office Space For Lease". It keeps getting worse too. Green shoots or mustard seeds on tv seem so ridiculous when I drive across town. I'm thinking of making a you-tube documentary video because I want my kid to see this when he's grown up.
 
Oh, and to answer your question: to short real-estate, consider buying SRS, or shorting IYR. To play the banking side of things, I'm buying triple-short banks FAZ.
 
The big banks are safe, its the smaller regionals that will take the hit if the Fed allows it (and the new $500Billion line for the FDIC suggests that a lot of regionals will be allowed to fail, look for the new list of problem banks to be announced next week on the 27th)

IAT
KRE

personally I like the SRS to play the coming CRE debacle. CBG will soon be well under $5 again.
 
Quote from midniteeuropa:

anyone have any suggestions? just saw 3 consecutive back to back to back commercial spaces with for lease signs. amazing.
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Thats nothing new, where I am there are for lease signs EVERYWHERE. In the last 2 months along I have witnessed 4 car dealerships close up, 3 within 1 mile of each other.


ANYONE who believes we are going to see a "V" shaped recovery is insane. This is just the beginning, this recession has years and years to go. The markets will revisit fresh lows this year, so get ready for an extreme ride to the downside once again.
 
The only explanation that I can think of that makes sense is that REITs are seen as an inflation hedge. However while I feel there will be a time for that it is too early and we have another deflationary leg coming.
 
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