The banking tsunami is in the early innings. The banks are tightening, driving away customers, and becoming even less profitable. Spiraling. More 'breakage' to come. More small bank customer flight to the big banks and into 1 year bonds just piles more hurt on the regional banks.
1. S&P 500 forward earnings are declining relative to three months ago;
2. The yield curve is inverted (or has been over the last 12 months);
3. Unemployment is below average;
4. US Manufacturing PMIs are below 50; and
5. More than 40% of US banks, on net, are tightening lending standards.