Posted on 01/15/2009 3:02:01 PM PST by gpk9
NEW YORK (AP) -- Shares of major U.S. banks plunged Thursday as the government mulled giving Bank of America Corp. a fresh multibillion-dollar aid package, raising fears on Wall Street that the battered financial sector may need an even bigger bailout.
Bank of America shares fell as much as 28 percent -- dropping to their lowest level in 18 years -- on news that the bank may seek another capital injection to manage losses from its takeover of Merrill Lynch. Citigroup Inc. shares fell to a near 16-year low as investors braced for horrible fourth-quarter earnings due Friday. And JPMorgan Chase & Co. added to the pessimism with a grim earnings outlook. Shares of all three banks came off their lows later in the day as part of a broad market turnaround.
Still, the carnage fanned investor fears that mounting bank losses and a darkening economic outlook are thwarting government efforts to resuscitate the banking sector. It raised the distinct possibility that the largest financial rescue package in history may swell even further.
"The perception on Wall Street is that things are getting worse and that the banks are bearing the brunt," said Jack A. Ablin, chief investment officer at Harris Private Bank in Chicago.
[snip]
(Excerpt) Read more at finance.yahoo.com ...
“drastically curtail/rescind stupid gov’t regulations”
DEMOCRATS WILL DO THE OPPOSITE OF THAT.
Stupid idiot Democrats are going to add to taxes for banks by closing a tax break that was specifically designed to help banks take over unhealthy banks.
Idiots! Democrats are making it harder to pay for bank losses. meaning they are undermining the banking system.
This is like cutting a man’s wrist as part of an operation on him.
I think that it is more like the old practice of putting leeches on a sick person to bleed him.
They actively geared their marketing efforts to illegals...placing ads in Spanish tv, radio, signs, etc.
Out of the 2,400+ people who have viewed this thread, is there anyone besides me who feels:
a) These financial people are not stupid. They are greedy. Greed would explain all the seemingly insane actions we’ve been seeing, including these bailouts and all the rest.
b) Paulson and Bernanke are helping wallstreet financial institutions more or less loot the U.S. Treasury, and by extension, rob taxpayers blind.
c) All this talk about buying up toxic assets and such is just a cover story. They’re basically looting the U.S. Treasury and the taxpayers.
Yep.
It's being doing that since this crisis broke. It crumbled when TARP I was rejected by the Senate and it shot up when TARP II was finally passed.
That effectively ended any lingering interest I had in the Dow. Nothing I've seen since has changed my mind.
after the first bail out back in october, the local BOA people had a big party at PfChangs.....drinking and eating like drunken sailors.....
And why Mises observed that there is no good way out of a busted credit expansion bubble. You can't spend your way out, there isn't enough free cashflow. You can't borrow your way out (the Obama plan), that only fuels the fire. All you can do is let it work itself through and mitigate the worst of the damage along the way.
Unfortunately politicians, having sucked in the people's expectations, are organically unable to leave bad enough alone.
Your question has nothing to do with wisdom. It has to do with choosing either to be "good" or "smart."
“after the first bail out back in october, the local BOA people had a big party at PfChangs.....drinking and eating like drunken sailors”
This does not surprise me at all. There will be a lot of big wigs partying with tax payer bail outs. I don’t know what they will do when the tax payers are without jobs to pay no taxes.
they sure do...I see it all the time. I speak a little Spanish and man.....it is sad. And Texas is being hard hit, like Ca. with all the illegals. But I had the pleasure of not doing business with one of these illegals. I had my old car for sale. An illegal stopped and wanted to buy it, I ask to see his driver lic and he did not have any. And I said SORRY, CAN’T SELL YOU THIS CAR WITH NO DRIVER. LIC., his son had to translate that for him. The illegal said jodienda hembra means F****** B*****. I laughed and walked away. There is a site that will translate for you. It is http://translation2.paralink.com/ so if you catch any words, you can find out what they mean. It is a neat site.
“Wagner...from Washington. AP Economics Writer Jeannine Aversa in Washington and business writers Madlen Read in New York and Ieva M. Augstums in Charlotte, N.C.” wrote a typical AP article! Absolutely clueless, all, in rambling 2nd grade AP style! They wrote the entire article without so much as a parenthetical mention of Larry Summers ‘enlightened’ letter to Treasury earlier this week! Umm, that’s the cause of the current Bear Raid on Banks, not any thing that those 4 jounalistically-challenged yahoos found in their homework assignment!!! That Summers goes to Washington again defies belief as well! Time will tell whether Banks will survive the Rubin-Summers one-two punch! Does paypal take barter exchange?
Depends on WHO you LOSE it to! BAC lost to illegals, and others who didn't show any proof of income....a worthy socialist goal...Obama will be proud and show this paragon of socialist virtues all the generosity of the palace treasury!
Yep, here we thought we were paying Pedro $6/hour, and all along Pedro knew he was making at least $100/hour. There goes the 'doing the jobs most Americans won't do' story!
Schiff also said this week that he's closed all his shorts and is 'LONG' again, buying stocks (perhaps not bank stocks). Rogers also said he'd closed all his (and presumably Soros') shorts before Thanksgiving.
(Raises his hand).
I think exactly as you do. They are greedy and are robbing us blind. It’s no different than if a mugger came up to me with a gun. As a matter of fact, that would cost me less.
So I take it that you would agree completely with those who shorted financials the minute that Larry Summers wrote his letter to Paulson last week!
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