Why I was wrong [on the bank stocks], by Dick Bove (XLF; BAC; C; JPM)

From FT Alphaville:

Rochedale’s Dick Bove has pondered why he’s been wrong on the banks — spurred on, he writes, by a Bloomberg survey (which we couldn’t find) showing analysts’ predictions on financial stocks have been dismal over most of the past two years.
The conclusion:

Why Was I Wrong in 2011 and Will This Continue Through 2012?
The answer to the question as to why I was wrong in 2011, and some other analysts may have been as shown in the Bloomberg survey, is clear. I failed to understand that the fears in the market concerning banking were so great that the fundamental improvements in the economy, the industry, and companies like Bank of America and Citigroup would simply be ignored.

The next question that arises concerns whether the fears in the marketplace are reasonable and whether it is true that the banking industry can suffer very negative consequences that do not impact the overall economy. The key issues are these...MORE