Think the Financial Sector will keep falling, play SKF

Let's face it, the Financial sector is doomed in the short run. What better fund to play than an index that bets against the big banks, welcome UltraShort Financials ProShares  (Public, AMEX:SKF).  

At $126 a share, it's spendy but they hand out a nice dividend every quarter, in Sept 07 it was 44 cents and last December it came in at 71 cents.  Not bad considering every other Bank and Lending institution is not raising their dividends if they are keeping them at all.

I don't need to tell you how bad the U.S. Financial Sector is doing, thanks to Subprime lending, it's on the news every night. Don't get me wrong, I love Bank of America (BAC) and Citigroup (C), but investors don't, so why invest against the borg?

You can't win right now and like they say, resistance is futile. 

Warren Buffett on Friday said "the party is over" for insurers and investors speculated banks might have more credit-market losses.

The latest views of the subprime impact is it could last another 12 months, sucking the life out of lending, driving layoffs, and spurring company bankruptcies and bank failures.  So are we in a recession?  When will it end?  How long will it last?

According to the International Herald Tribune, the depth of the crisis has not yet been reached. The study concludes that unless financial markets can quickly recapitalize, banks are likely to cut back their lending to consumers and businesses by nearly $1 trillion.

That will cut economic growth by more than a percentage point over the next 12 months, according to the study released Friday by David Greenlaw of Morgan Stanley, Jan Hatzius of Goldman Sachs, Anil Kashyap of the University of Chicago, and Hyun Song Shin of Princeton University.

UBS said Friday that losses from the global credit market crisis would probably exceed $600 billion, of which listed banks and brokers should account for "only $350 billion."

The crisis has cost the global banking sector well in excess of $100 billion in debt write-downs so far, but losses tied to the credit turmoil will probably exceed $600 billion, with banks and brokers accounting for more than half of that, UBS said in a note published Friday.

Fellow Masters, the financial sector is going to keep tanking, the borg is winning.

So how do you play it?

Go UltraShort Financials ProShares (Public, AMEX:SKF).  They seek daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones U.S. Financials Index which is made up of the following:

Don't fight it Masters, jump on the hate train then when it's hit the peak, show the banks some love by buying up all their stock.

Besides not all Borgs are bad. Yea, how you doing?