Here we have a classic speculator's dilemma. The long-term fundamentals suck, but the near-term momentum is strong and the timing for a short looks iffy. What to do? Simple - step aside until the near-term momentum has run its course. Then, step in and short the living crap out of these pumped up pieces of financial toxic waste. Sit on your ass, wait patiently, then making a fucking killing just like 2000-2002, 2007-08, and unless I am very much mistaken, 2009 too.
you are much mistaken this time... with all the side line and cheap money around, what you think the market will go to ?
Now, that strucured finance and structured products have been revealed as Pandora´s box, banks have to go back to classic baking - hum, banking : Loan loss provisions will rise. Write-offs will rise. Risk assessment and risk procedures much more scrutinized then in the hype years. You might expect bank earnings becoming much more volatile from quarter to quarter. And SEC / FDIC / FED / government controlling banks like new born babys.