rssCredit Crisis Not Near Over, Happy Monday
Monday, April 14, 2008 at 8:17 am
- 2 Comments
Wachovia Corp. said today it had a surprise $350 million first-quarter loss and will raise $7 billion by selling stock to prop up its troubled bottom line.
Wachovia, along with Citigroup, Merrill Lynch, and Washington Mutual, are described by blogger Michael Shedlock as “chronic anemics” that keep needing money from external sources to keep themselves going. Wachovia’s losses are tied to defaults on Option Arms, which allow the borrower to choose the size of a monthly payment, with the unpaid interest added to the mortgage balance.
Shedlock predicts more transfusions ahead for all these banks, so don’t get your hopes up that the credit crisis is anywhere near the bottom yet.
2 Comments
Comment posted April 14, 2008 @ 8:43 am
Dateline Monday April 14, 2008. 07:45 MDT, ‘Bottom falls out of market…Stocks crash! Run on banks! Ben Bernanke leaves for Bahamas. Extended "vacation" given as reason for his immediate exit from the Homeland. Apples selling for $500 dollars (U.S.) a bag! Gas nonexistent! Candidate Clinton in ‘extended’ consultation with Elton John and Dr. Phil at the Misogyny Center For The Terminal Stupid. Candidate Obama ‘going back to school’ for "an Elitism 101" refresher course. Candidate McCain gone ‘over-the-edge’ and shoots 3 reporters for suggesting that he (McCain) might cut down on his caffeine intake.
Prognostication for the market today- Dow down 550! NASDAQ down 75!
TTFN! Buy bonds!
Comment posted April 14, 2008 @ 3:43 am
Dateline Monday April 14, 2008. 07:45 MDT, 'Bottom falls out of market…Stocks crash! Run on banks! Ben Bernanke leaves for Bahamas. Extended "vacation" given as reason for his immediate exit from the Homeland. Apples selling for $500 dollars (U.S.) a bag! Gas nonexistent! Candidate Clinton in 'extended' consultation with Elton John and Dr. Phil at the Misogyny Center For The Terminal Stupid. Candidate Obama 'going back to school' for "an Elitism 101" refresher course. Candidate McCain gone 'over-the-edge' and shoots 3 reporters for suggesting that he (McCain) might cut down on his caffeine intake.
Prognostication for the market today- Dow down 550! NASDAQ down 75!
TTFN! Buy bonds!
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