Financial stocks are getting slaughtered

Citi is down over 17%
Bank of America is down 22%
JP Morgan Chase is down 17%
PNC is down a ridiculous 40%
State Street Financials is down 50%

The list could go on to pretty much cover every traded bank on the board.

I'll be honest, if the Obama camp hadn't pressed so hard for release of the remaining $350 Bil TARP funds last week, I'd take this news as a really great sign that Wall Street expected a tightening of government funds being handed over to the banks. The fact that Obama has pretty much stated that the bailouts will continue with only cosmetic changes makes me confused and, frankly, a little scared at exactly what this means. This is like pouring sand into a bucket riddled with holes, only the sand is our nation's money and the bucket is the banking industry.

As I see it, the next several days are going to dictate the direction of the country over the next 4 years. If the Obama camp continues to stress the "too big to fail" mantra and keeps pouring money into the bucket, we are completely FUBAR. If, however, there's an immediate policy change and the funds are actually stopped until the banks change their system sufficiently enough to return to viabillity and strength, if not cut off all together, we may have a chance to come out of this spiral and return to some level of financial strength. Right now the happenings on Wall Street are NOT a good omen of things to come, though.

Citi is currently trading under $3/share on high volume.

While that number is horrific enough considering their 52wk high is just under $30 (IOW C is worth a tenth of what it was in 2/08 - freakin' OUCH), one important thing to keep in mind is that major hedge funds generally won't keep stocks trading under $5/share. If Citi keeps trading at these levels, hedge funds will be divesting themselves of their shares in short order. This mass selling drives the price down further, which weakens C's existence even more.

BAC is approaching the $5 level as well.

If this continues, today's slaughter will look like a picnic when the hedgies have to sell.

Not a good sign. What exactly does it mean I have no idea.

What I think it means is that we are in serious financial trouble. We have a president that is pushing for more bailouts and the market is dropping confidence has dropped.

Well, I don't know what else to say.

Is this at all a surprise? While everyone is at home watching the Obama Nation, the Wall Street crooks are hard at work short selling everything.

This is going to be the real financial crisis when the retail reports come out and the bank insolvency is really exposed. The bear run in Sept/October was merely a warm up.

Originally posted by burdman30ott6
Citi is down over 17%

As in Citibank?

Considering that Obama SUED Citibank and forced them to make bad loans - info here - perhaps they are thinking now that he's POTUS he'll do even more damage to them.

all those % (percentages) are foggy numbers , because whats 20% of $4.00... 80cents !!! whoopie.


what really counts are dollar moves...
for instance, in the 'Portfilio Challange' sponsered by a TV financial channel
I have the Ticker: SKF in my portfilio

'SKF' today has moved up in price some $39.00 to over $193. per share
and i just increased my position by 10%... as i see it going over $200.
this week.

other 'shorts' i buy are DZZ, SKK, SDS, SJH and others....

because i agree with other knowlegeable economists/financiers that the DOW is headed for 5,000 or lower...at least till the Obama Economic-Recovery-Plan is begun

So i'm shorting & double shorting the market for now- & also Gold


thanks,

Citi just cut its dividend to $.01/share.

This is not good news whatsoever. Very, very bad.

Expect yet another bailout for C, if they're not broken up and sold off outright.

reply to post by St Udio


I'm sorry but that is about the most unsound investment advice I have ever heard.

I wouldn't care if my 20% loss came in the form of a stock losing $.80 or $8.00...IT'S STILL A LOSS OF 20%!!!!

I understand where you are coming from but you are wrong. It all depends what price you invested at....

[edit on 20-1-2009 by vonvitt]

Funny thing.

I had just started my 401k this year. Thankfully I hadn't been in for longer, as I've seen just over this year alone, a 40% loss in almost every fund I'm in.

Dude I work with lost 10k!

Whatever the fix to this mess is, it needs to found quickly and solved.

What do ya all mean this is bad bad bad new? This is wonderful news. Ya see, broke ass humans can't buy stuff, and when they can't buy stuff the planet isn't raped and trashed so much. And when humans become really broke, they riot and start wars because they are all mad. And when they riot and war, the population decreases. And when the human population decreases, that too is good for the ecology. This is all absolutely wonderful news! It's what I've been wishing for for quite a few years. Today is a good day. Tomorrow will be even better. And the day after that too.

Gee, I thought I would wait and see what happened after Obama was elected to decide whether or not to take out what's left of my 401k. By the time I get the paperwork sent in, there won't be anything left.

I'm begining to think my luck would have just as good at the casino. Or do the banks run that too?

reply to post by Divinorumus




So how long do you think it is before we start fueling the world with 'Soilent Green"



Ahh, at this point I see it is just time to enjoy the ride will it get worse? Of course we have a president that has no experience and a team of economic advisers that thinks we can spend our way out of this.

Crash baby crash

For real, does anybody know if Pady's is taking bets on how low the Dow will go?

edit - spelling

[edit on 20-1-2009 by Hastobemoretolife]

I'm starting to look at it that way, also.

Hell, I KNOW I can play BlackJack. From my perspective, might as well stand a chance at making money rather than watch it be poured down the drain, if you will. Oh, and they are devaluing the dollar along the way. Meaning whatever you CAN salvage from your savings won't buy squat.

This damned fiat currency bullsnap has to stop. We need to move back towards an economy that isn't so speculative and move back to something that is backed by something that cannot be manipulated through warfare.

The best argument I've heard so far is that the DOW will bottom out around 7,500.

[edit on 20-1-2009 by Jay-in-AR]

reply to post by Divinorumus


No, but even the poorest man can still punch a jackass in the nose. Now stop wishing ills on people who already are up to their eyebrows in crap.

--------------------------------------

I just saw that BoA is saying they need $80 BILLION more dollars printed up and given to them to reach a 6% tangible equity rate. They've got $2.4 trillion in assets and only $61 Bil in equity. I can't help them with the $80 Bil, but I can certainly provide them with one finger.

The markets always do bad on inauguration day.

Financial are going down because even with the bail out they are still losing money no brainer here the bail out was a scam people.

Then Obama speech didn't make the wealthy in the nation feel any better and neither the crocks in Wall street when Obama calls for more regulations and the rich to help.

Hell I wonder if he will go after all those oversea accounts. . .

Still many will sell out and get the hell off the US markets in case things turn to the worst for their dirty pockets.

reply to post by burdman30ott6


That is CLASSIC! "Hey, give us more cash! We are doing so well with it that we have debt on the order of 24 (or so) times our holdings! We promise we'll spend it wisely"

I can't believe these idiot politicians actually buy this stuff. Nah, they're in on it also.
This is why Obama received something like 24 million in "inauguration monies" from these same CEOs.
"Hey, but I just gave you 3 million dollars for your inauguration! The least you can do is print me up another 80 billion!"

I would like to run these dorklickers out of town with a pitchfork.

reply to post by marg6043

On the eve of Barack Obama's historic inauguration, Dow Jones futures point lower 102 points. As I did some research, I discovered that the stock market has been down on the day of an inauguration 12 out of 16 times.

yashvazirani.blogspot.com...

[EDIT note]
This post was edited because my prior market information was for election day not, inauguration day. Sorry for the misinformation.

[edit on 1/20/2009 by clay2 baraka]

Originally posted by burdman30ott6
No, but even the poorest man can still punch a jackass in the nose. Now stop wishing ills on people who already are up to their eyebrows in crap.

No. I hope it crashes crashes CRASHES! Game over! The US dollar is DEAD. It's CRAP! It's worthless. You might as well start using it as toilet paper. The end of your consumption driven economy is NEAR. Get over it. This ugly Earth destructive era and greedy cheating fiat money madness must end! The dollar is doomed! Doomed! And I'm laughing and dancing because of it. Dancing and laughing!

[edit on 20-1-2009 by Divinorumus]

Thanks for the post in the previous presidents and Wal street, I remember Clinton era my husband and I did very good in the Markets.

reply to post by Divinorumus


The day the dollar dies, I now plan on taking my chainsaw and cutting down every tree I can find, draining the oil pans on all my vehicles into the soil near a wetland, and standing in my livingroom turning the lights on and off until the bulb blows... all because of what you've just posted. Hope you're proud of yourself for being such an inspiration to me.

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Marg:
You're right about the inauguration day thing, but I don't believe we've ever seen a 4% drop like we did today. Also, just out of curiosity, at what point during his presidency will the excuses stop? You can't very well say at the end of Feb when the market is still tanking "Well, most presidencies have poor market results at the end of 6 weeks." now, can you?