RSS Feed
Twitter
Facebook
Email
HomeEconomic/Market Highlights 11/19/08 . . . The Pain Increases!!
Posted by Larry Doyle on November 20th, 2008 7:10 AM |
***Citigroup is down another 25% in this morning’s trading as investors are concerned that embedded losses are deeper than previously thought….as the attached article highlights, “it makes us think the mark to market writeoffs are not over yet”.***
Read more as to how and why “Citi’s Slide Deepens….”
As my Dad used to say when the report cards came home, “Just give me the grades and save the sob story for your Mother!”
| Dow | on the day | -5.1% |
| month to date | -14.2% | |
| year to date | – 40% | |
| S&P 500 | on the day | -6.1% |
| month to date | -16.7% | |
| year to date | -45.3% | |
| Nasdaq | on the day | -6.5% |
| month to date | -19.5% | |
| year to date | -49% | |
| 10yr U.S. Tsy | on the day 3.33% | down 20bps |
| month to date | down 64bps | |
| year to date | down 70bps |
With grades like these, my Dad would have clenched his teeth, furrowed his brow, and bit his tongue. My Mom would proceed to rip my head off. Truth be told, that tough love was just what I needed to increase my discipline.
While tough love needs to be more love than tough, the fact is that covering my own shortcomings in work and discipline solved NOTHING. Our “socialized housing finance system” and our effectively “socialized banking system” are finding the same outcomes. Ultimately the price must be paid much like the losses must be recognized.
Neither Paulson nor Congress nor anybody in Washington or Wall St will tell you that the system has trillions in embedded losses but they do and our markets know it and are showing it by their prices.
(more…)
