Small banks don't like steep yield curves

98 American banks that received $4.2 billion in bailout money are teetering on the edge of collapse, according to the Wall Street Journal.
In Q2 the number of unsound banks numbered 86; the increase to almost 100 institutions - most of which are smallish banks with about $439 million in assets - comes as a result of decreasing capital and more bad loans.


Read more: http://www.businessinsider.com/bailed-out-banks-failing-tarp-december-27-2010-12#ixzz19NcXme2O

The economy has down shifted, growth will be 15% below previous estimates, small banks will merge. Soon the lower growth will be showing up in lower M1V, as it to drops by 15%. Oil and commodities are not going up, they are going down. The economy is more dilated.
A less precise economy will start knocking off the indebted Munis, score one for Meridith and Mish.