Banks rule

Market Watch: A gilded era for banks is about to get under way.
That’s the view of Steve Eisman, the hedge-fund manager and investor who garnered prominence on Wall Street for his bets against dicey mortgage products engineered by some of the world’s biggest banks. Eisman, whose story was told in Michael Lewis’s “The Big Short,” wagered correctly that these mortgage securities would eventually rock the financial system to its very core
Now, Eisman is espousing a much more bullish position in the banking sector, which has benefited mightily from President-elect Donald Trump’s promises to roll back a spate of financial regulations. Proponents of deregulation claim new rules ushered in along with the Dodd-Frank regulations in the aftermath of the financial crisis have hemmed in large lenders, hampering their profitability. –– ADVERTISEMENT –– But Eisman, who works at money manager Neuberger Berman, says the era of Trump will be a “golden age” for the banking sector. “I think over the next couple of years there will be more leverage, and this will be a golden age of investing in financial stocks,” he told CNBC during an interview early Monday in New York. He said he was “as long as he could be” in the banking sector.

The economy cannot function without banks to cover government interest costs.  Their service means say good by to Janet and the Fed.