Bank stocks are in a house of pain right now.
One of the worst sectors to be invested in right now is the banking sector and it doesn't look like things are going to turn around anytime soon after Dr. Fauci's testimony before the Senate. Several banks struggled to paint anything but a grim picture when they reported financials in the past month and unfortunately didn't meet much of what TheStreet wanted to see during their earnings.
Jim Cramer took to Twitter to talk about his feelings around the banking sector on Wednesday.
He tweeted, "We must now focus on all the bank stocks for our next clue. They have been going down relentlessly. At what point will it matter to my COVID Index?"
"Because I think without the opening of most places we will have so many defaults that they will take the banks under with them and then a health crisis becomes a credit crisis and that's a heck of a lot harder to get out of. With this level of unemployment already we can take the entire economic edifice down. Too many revolvers have been drawn, too many loans to car dealers, retailers, franchisers, all of which are in jeopardy, which is why the bank stocks trade as if their dividends are in jeopardy. They are unless we forcefully open our economy and stop doing silly things like banning Elon Musk from making cars," Cramer wrote in his Real Money evening column on Tuesday, May 12.
Cramer said, "You have a lot of companies that had great credit [had businesses] that were shut down. That means a lot of forgiveness..."
Watch the video above for more.