So the question is - which is the next entity to be bailed out on a Sunday by the Treasury? I am thinking it will be either GM or WaMu.
well when the UK nationalized northernrock the pound sold off, so i would expect the same with the dollar
anyone think this is a situation of buy the rumor sell the news considering the bailout was leaked friday morning, i'm thinking market gaps and traps on monday
I agree. It just seems like the entire financial system is one giant house of cards and we are pulling out one card at a time trying not to topple the whole giant mess. What card is next? what will finally bring this all down? It's just downright scary out there. I'm just amazed the market is only down 20% with all that has happened. Not sure if that shows some hidden underlying strength or investor stupidity. I for one am not ashamed to say that I'm at a loss when it comes to market direction in the short to medium term.
Didn't they eliminate dividends for common and existing preferred? That should effectively make them zeros.
nq-scalper i agree with you. i really think that complacency is real high yet and many think that all will be solved by our gov. NOT SO ! beware all is not OK. if all sounds too good to be true it almost always is. bgp
That's why he said if you are a regional bank with enough preferreds to make you insolvent after they go to zero, that you should "contact your regulator". I guess that means the FDIC will cover you if the Treasury can't. As far as Treasuries, Bill Gross has apparently been shorting them for the past few weeks. Since he now tells Hank and Ben what to do, I'd say rates are going up.