Matt Levine’s Money Stuff: Bank Stocks Look Worse Than Banks Do

Oh banks

One way to think about it is that the stock market is supposed to be efficient and the market for bank deposits is not. The point of the stock market is that a lot of well-informed hedge fund managers and hard-working analysts and Reddit-reading day traders are all competing with each other to find out information about each company and use that information to determine the fair value of its stock. The price of a stock changes each second to reflect the information and views collected by the market, and if the market is working well then that ...