UpsideTrader, Joe, predicts more pain ahead.
More Pain
There was so much talk about "zombie banks" last week, I thought you might be interested in a shot I took of Ken Lewis and Vikram Pandit hanging out at Hyde Lounge in LA last night. That’s Lewis on the left asking Pandit if he really wants to hang around at the bank for only 500k per year.
S&P futures are down about 21 handles, DOW futures are down about 170 points and oil is down about $2.40 to the $42 level. The DOW has broken the 7000 level in pre-market trading as AIG bellies up to the bar for billions more and HSBC confirms a capital raise in the billions to shore up capital. Is there a Dryship tanker big enough to carry all this toxic paper? I think not.
Good luck, watch for a bounce, but be prepared for the worst.
And previously:
Watching the Market and the Financials…Again
So Citi is back under $2 and $BAC is back under $5. Didn’t last long did it? Oh where are the halcyon days when our biggest banks sold for more than $5? Seems like yesterday.
My own personal opinion here is that we will become unhinged as the wheels fall off the train. I believe 5000 is coming and maybe sooner than most people think. Call me silly, but this isn’t the time for a $1 trillion tax increase and drunken sailor spending. I’m goofy like that.
(Click on cartoon for larger image.)
