cfc declaring soon, some banks not seeing much on the attempted bailout a few months ago. Bernanke take notice!
The banks put themselves in this position. They were the one finding creative ways to bank on the biggest housing boom in history and this is what it has lead up to, TENS OF BILLIONS OF WRITE DOWNS and SEEING THEIR STOCK PRICES FALL AS MUCH AS 50%%%%%%%%%% Greed is what lead to this, GREED.
And why not? They know the Fed will "come up with something" (like buying up all the defunct CDOs and SIVs so the banks can be recapitalized and do it all over again)... the taxpayers can foot the bill, of course.
I have a feeling they can only do so much before it just completely falls apart. Aside from that this falling stock market will probably bring a slow Christmas to many retailers, no one likes to see their house prices fall along with their investments in the stock market. May be a very slow Christmas.
Once again I'll play the role of stockhold3r: "Everything's great. Just buy, buy, buy!!!!!! RIMM, AAPL, GOOG will own everything pretty soon and you'll do well to own them. There is no credit crunch and even if there was, it's great for the economy. Bank failures are good for the economy and a bankrupt consumer is even better......" So with that i say, BUY, BUY, BUY!!!!!!!!!!!!!!!!!! (or did i mean to say bye-bye???)
Yours is an especially important point.... If the Fed keeps 'cutting and pumpin' every few percentage points down, soon rates will be 1% or less. What more can the Fed do except monetize the debt and bad investments? This is all very, very inflationary and should lead to a $USD rout. Somewhere around there is where "it just completely falls apart". The market is ignoring and not pricing in nearly all the negatives we're currently facing.. that's because it has total faith in the Fed and the money pump to fix anything and everything. History says that works only for "a while". THEN what?