US media in a coordinated effort to trash financial stocks. Even CATY not into risky residential mortgage hit hard. WHY the analysts downgraded Citigroup just "AFTER" the Fed cut rates, "this will cause maximum downward momentum for financial stocks, and they will gain the most by sell-short" this is the way for these hedge funds to make money. Before they were able to manipulate the markets in Asia BUT they won't be able to do that today because CHINA has 1 trillion reserve and it is willing to save the market if seen manipulation by these hedge funds. Now they turn to the US. I THINK THIS IS ABSOLUTELY THE TIME TO OWN FINANCIAL STOCKS AND NOT SELL AT THIS RIDICULOUSLY LOW VALUATION. IF SELLING NOW, YOU ONLY GIVE THE MONEY TO THESE MANIPULATORS.
are you smoking crack....no one outside US wants to own a single US dollar and consumer DEBT is even worse than the housing problem......the US consumer has no money and its high paying jobs to take on credit are long gone
what write offs? how big are they? the stock is down 30% this year and 25% in the last few weeks. that's around $60 billion of value wiped out. Are the write offs going to be this big? If so, where would the write downs come from? yes, the balance sheet is deteriorating but not that quickly. SIVs, even if they need to be taken onto the balance sheet, are not worth zero. They're likely not even worth less than 80 cents on the dollar.
U.S. financial stocks are going into a long-term down draft.
Inertia on the part of U.S. banks to the subprime crisis similar to Japanes bank melt down in early 1990, which was also do to real estate down turn.
Democratic Congress investigaging student loan rates, credit card rates, subprime mortgages and other "predictory lending."
Democratic Congrees and President will likely increase carried interest tax rates on many Wall Stree firms and banks.
Acerbic meltdown of banking sector will lead to more regulation and perhaps a re-thinking of Glass-Steagel.
Wall Street is easily emulated by other nations as they educate their own people and their people accumulate wealth. Hence, Wall Street losing market share during the past five years, this trend likely to continue.