Monday, March 10, 2008

What's Going to Stop the Slide in the Financials?

Does anyone know?  Because I don't.  We seem to be trapped in a downward spiral.  As spreads widen on fixed income securities, values decline, margin calls are made, collateral is seized, and more selling causes further declines.  What's interesting and different about this period in the markets is that spreads continue to widen as the fed eases and pumps more liquidity into the market.  How is it going to end?  Probably with a bailout of some large financial institution.  Makes me wonder who is buying financial stocks at these depressed levels...

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