Posted on 02/20/2009 6:53:12 AM PST by balls
Shares of the two Wall Street giants were under pressure as analysts speculated about a coming wave of government ownership in the financial sector. Both Citigroup [C 2.03 -0.48 (-19.12%) ] and Bank of America [BAC 3.29 -0.64 (-16.28%) ] were down nearly 20 percent in early trading.
This comes after as selloff Thursday that saw the Dow crash through its November low to settle at a six-year low.
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Traders have been clamoring for details of the Obama administration's stimulus plans, which were expected to assuage market jitters. But when specific plans for the mortgage-rescue plan emerged, stocks sold off.
"This market sold off quite frankly because it did not like the plan period," Jack Bouroudjian, a principal at Brewer Investment Group, told CNBC this morning.
The whole concept of stimulus and pork bills that don’t work was developed well within the Bush administration. Obama is serving W’s third term.
There, that needed to be in BOLD.
That's what I told my boy a few months ago. There was a bit of silence on the phone (Jeez, the Old Man's gone over the edge). I also told him to get his 401k and IRAs out of stocks and into gold and Treasuries. He hesitated on both, and saw $20,000 go down to $9,000.
Yesterday he told me he cashed out one small IRA and is keeping some cash in the house and is moving his 401K as I told him. He'd better hurry.
As Mark Twain said, "When I was 18, I thought my dad was the dumbest man on earth. When I reached 21, I was AMAZED as the wisdom he had accumulated."
Look, none of like Obama, OK? But blaming him for every plunge in the stock market makes us look like idiots and shills. He’s sure not helping the situation but this train wreck had its genesis in the previous administration.
Mentally prepare yourself for a DOW between 800 and 1500, for maybe a decade. Within a year, I am guessing between 4000 and 6000.
Quick Barry, more happy talk.
Yes we can hope for change, but we need to change hope.
We need to know that we can change the hope that was changed. I hope we can embrace change with the light of hope. Hope must come from change, and change must come from the hope of “yes we can”. Now go my changelings and have hope. Have the hope that you will not have to worry about paying for yo car or yo mortgage. The change that I am hoping for will take care of that. You can also hope that change is not all that will be left in your pockets. Yes we can hope and yes we can change, but we can’t let hope bring down change; and we can’t let change take down hope. Yes we can Yes we can!!
There the DOW should be rebounding any second now!!
Turn on your TV..The One Speaks.
sw
We moved our 401K’s into treasuries when we saw this coming, so we didn’t lose anything. IF the government defaults, oh well...there it goes, but our only choice in our plans, other than paying the penalty and huge tax hit was to move them into a stable fund.
Our son’s 20 and finishing up his master’s degree, so he has savings, but nothing that FDIC wouldn’t cover. But he uses his debit and never carries cash, and I explained to him the need to have emergency cash in case your debit doesn’t work (i.e. bank default, etc.)
The toughest nut to crack was my 84 year old dad. He had his money in mutual funds (all of it, lots of it.) We argued with him for years and finally last year we convinced him to move the funds to a 5 star rated bank, and put it in CDs. The other day I showed him how much he would have lost if he had stayed in those funds and he was dumbfounded. What made us mad was he had a broker that was advising him to let the funds ride...what kind of advice is that for an octogenarian?
Tell your liberal friends it is not Reagan’s, Bushs’ nor Clinton’s fault, because all four POTUS did something that prior POTUS did not, they gave Wall Street and corporate America freedom to innovate and create. Wall Street repaid America with reckless greed which created an atmosphere that people can do whatever they wanted including fraud to get bonuses. Well Sep 2008 will go down as bad as 9/11 except Bin Laden caused only $100 billion in damage while Wall Street created $7 plus trillion in damage. Average American voters (Dems, GOP, indep) are still fighing over stupid partisan fights while Wall Street and their enablers (Dem and GOP) are willing to cater to them. Bailout story is sounding the same, Wall Street/Corporations screwed up, they go to Congress and threaten America that if they don’t get bailed out, they will screw America with total collapse, and when the government bails them out, we the taxpayer are screwed.
Right, everything's Bush's fault and nothing is Obama's fault.
That's crazy. How about we just say that Obama's tax'n'spending is harder on the economy than anything Bush did and leave it at that.
I said it last night and I'll say it again: it's only a matter of time (weeks?) before Dow Jones pulls the tried and true trick of replacing the dogs with stuff that isn't death warmed over. Any or all of C, BAC, AXP, GE, and JPM (least likely) will be replaced.
FR just had an excellent article by Denninger, who pointed out that in the post Sep 2008 world, young and middle age income earners will not invest in Wall Street. They will stick to savings and CD’s. Stock market in the next 20 years minimum will be stagnant because Joe public is sick and tire of the games WS played with their leveraging and borrowing to invest schemes which finally collapsed in Sep 2008. Wall Street and investment bankers have no one to blame except themselves.
And who, may I ask drove that concept; the dems; along with select non-conservative repubs.. Barry took FULL RESPONSIBILITY, when he endorsed this madness by signing the spending bill last Tuesday.
As the leader of his party, and the nation, he very easily could have changed the direction things were going. instead, he loaded up even more pork into the equation and saddled the economy with burden that it can ill afford to carry.
As of Tuesday, this became Barry's, and the dem's, mess. No amount of finger pointing at Bush will change that fact.
He speaks to someone on his right, then he turns and speaks to someone on his left. He never speaks to me.
And W signed every piece of spending junk that landed on his desk. He needed an illegal alien veto pen to do the the job his American veto pen wouldn't do.
0bummer, your stocks are down again.
Just wait until the folks who run the DMV and the post office get to be in charge of your banking.
....and Fannie mae and Freddie mac, Christopher Dodd, and Barney Franks...
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