Monday, October 03, 2011

Is It Getting Really, Really, Ugly?

Karl has let his blood-pressure govern some of his essays, but you ought to pay a little attention--just to say that 'Yah, I heard about it' if it happens....

So you think Morgan Stanley diving 8% today is bad eh?

Don't look at Bank of America, down 8.5%
Or Citibank, down 9.5% (and don't forget they reverse-split, so this is really a stock price just over $2)

...the news is that a new credit lock-up is imminent

That would be really, really, ugly.  If it happens.

Have a little extra cash sitting around the house, just in case.  You can always put it back in the bank, or under the mattress, or in the laundry-hamper, if nothing occurs.


Billiam said...

No longer is denial only 'a river in Egypt'. It exists in great quantity in DC.

J. Strupp said...

...or park it all in treasuries and or cash. There is zero upside to equities right now and in the near term.