Bank worries sink Wall Street; Citi plunges

[seemslikeadream]

http://www.reuters.com/article/usMktRpt/idUSN2025686220090220

* Bank nationalization fear grips market

* Bank of America, Citigroup lead financial sell-off

* Dow and S&P 500 down 1 pct; Nasdaq off 0.4 pct

By Ellis Mnyandu

NEW YORK, Feb 20 (Reuters) - U.S. stocks tumbled on Friday, depressing the Dow to levels last seen more than six years ago as investors worried a financial sector rescue might involve nationalization of major banks, wiping out shareholders.

The mounting fear sent investors scurrying to the relative safety of U.S. government bonds <US10YT=RR> and gold <XAU=>, which rose above $1,000 an ounce.

Shares of Bank of America (BAC.N) tumbled more than 15 percent to $3.35, while Citigroup (C.N) slid more than 18 percent to $2.06. For a moment after the market open, Citi traded below $2, contributing to a 4.8 percent drop in the KBW Banks index .BKX.

"There's a lack of confidence in the government to get us out of this and that has people sitting on their hands and not willing to buy," said Matt McCall, president of Penn Financial Group in Ridgewood, New Jersey. "There's that fear that we nationalize banks and this market gets killed."



http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x5095567

interesting prediction....Citi bank and BOA are goin down within 60 days maybe lots sooner

[marketcrazy1]

1. is today the day???

citi trading 2.02 now BOA is at 3.40 the DOW is down 100+ support is vanishing. BLACK FRIDAY 2??? the government needs to do SOMETHING now!!!!

[Igel]

6. The government's done something.

This is the response.

Of course, just what the government's reported to have done varies by source, and why the market does what it does varies by the person doing the attribution of motives to what is, in essence, one of the more collective real-time decision-making processes of our day. (It's just not a collective many of us belong to.)

[TwilightGardener]

2. Well, outstanding! Last night we checked and our 401k lost 40% in 2008.

We've always maxed out our monthly contribution, and now I feel like such a chump--could have fucking used that money. It'll probably take forever to replace those losses.

[county worker]

3. For us with no money to invest, Freedom is just another word for nothing left to lose.

This economy is the great equalizer. You have perfect credit score? Wham! your rate is now 19%. You earn more than you spend? Wham Wall Street takes half of it.

[TwilightGardener]

4. I don't really consider retirement funds "investing"--it's a way to keep from

eating cat food (or still working) when we're 80, not a way to get rich. Good thing we're a ways off from retiring, I don't have to stock up on Tender Vittles just yet.

And yes, I have a good credit rating, and my credit card rate was STILL jacked up. Fuckers.

[county worker]

5. The blood suckers have taken all they can out of the unwealthy .

They got to get their fix from someplace.