Stock Market Today

[khosk]

There is news on the nationalization of banks, the government is going to take a much larger stake in Citibank. This stinks for equity holders of Citibank but this news alone should drive markets quite a bit higher.

Why? Markets hate uncertainty and this at least tips the governments hand and removes some uncertainty. I am taking a guess here but it wouldn't surprise me to see a 300+ gain in the Dow today. Of course I could be very wrong but I don't think I am.

[stiffolcock]

There is news on the nationalization of banks, the government is going to take a much larger stake in Citibank. This stinks for equity holders of Citibank but this news alone should drive markets quite a bit higher.

Why? Markets hate uncertainty and this at least tips the governments hand and removes some uncertainty. I am taking a guess here but it wouldn't surprise me to see a 300+ gain in the Dow today. Of course I could be very wrong but I don't think I am.
hedgebet much? jk. forcasting the market these days, you would be better off flipping a coin. conventional wisdom on predicting can be thrown out the window methinks.

[khosk]

You are right Stiff. Never make a prediction. Thought that was a sure bet and it looked like it was with the market opening up 75 points higher but here it is up only 25.

[gamecockphan]

Banks are up but DOW is currently down.

[khosk]

I bought BAC at 4.22. I figure they will do the same thing as CITI and ask the government to convert the preferred shares to common shares. It will dilute the value and the taxpayers will own 30-40% of BAC, plus other preferred holders will do the same thing further diluting share value but I figure that at least the common equity holders will not be wiped out and it's probably at a value that is safe enough to buy in at. Or at least I hope so.

[khosk]

Markets are getting hit hard. It appears that the Treasury has made a statement that they "now hope that Banks can remain public". The market doesn't like day to day changes as should be obvious by now. The other big story is GM and Chrysler. The Treasury is trying to line up private financing so that GM and Chrysler can enter bankruptcy protection.

http://www.businessweek.com/investor/content/feb2009/pi20090223_965189.htm

[maxx71]

Ford up on news that they have reached agreement with UAW on retirees health fund. I own a few shares of Ford. Hoping to eventually make a little money on it.

[Gamerooster]

The market knows that nationalization is a code word for failure. As the government puts in more money the banks get closer to that nationalization thing.

[stiffolcock]

-250? conventional wiz out the window......

[khosk]

The day turned out to be very ugly but my new investment in BAC held it's price.

[stiffolcock]

The day turned out to be very ugly but my new investment in BAC held it's price.
congrats? may you have a better day tomorrow.

[bgallup]

28 more days like today and she hits zero across the board!