Just when you thought things were really, really bad….the bottom is starting to fall out again.
Analysts are cutting estimates for many, many companies and downgrades are starting to gain momentum.
U.S. banks need new capital to the tune of $200 – $250 billion. European banks need at least that much.
Will the bailout work?
How much will the Treasury actually be paying for all the bad debt? (If someone uses the term “toxic” to describe the bad loans and debt, I’m going to bitch slap them. Think of another word.)
Will liquidity be restored to the markets with $700 billion?
Is this plan workable?
Watch the TED spread, LIBOR and credit spreads.
If spreads narrow, the market should begin to trade within a range.
If not, I think we could go down another 10% – 15%.
Just saying…….
If you enjoy the content at iBankCoin, please follow us on Twitter
