The banks, that is.
XLF (the financial sector spyder) yesterday, down 16.5%. That's impressive, but what's even more impressive is the loss in some of the components, to wit:
BAC, down 28.9%
Citigroup, down 20%
Goldman Sachs, down 18.9%
JP Morgan, down 20.7%
Morgan Stanley, down 15.9%
State Street, down 59% (!)
Wells Fargo, down 23.8%
Those are one day losses folks. In one day anywhere from twenty percent to more than half of these firms was wiped out. If you hold their stock, I hope you're prepared for what you see when you look online at your account.
Why did this happen?
Read on...
Peacenik half expected, along with everyone else, a brief inauguration rally in the markets. Instead the markets are one step closer to Armageddon. Looks like Obama isn't going to have a honeymoon period to think about solutions. His next step is crucial. On a slightly brighter note Obama ordered a pause in the military tribunals and a review of Bush's latest regulations. But the markets. Peacenik is nervous. Are you?
