Shares of GM fell to levels we havent seen in over 15 years, Ford also continues to fall, along with the airlines, and major bond insurers (ABK and MBI). Also, GE's stock price is plunging like the financial companies. A key thing to keep in mind here is that whether it's a large 'blue chip' company or not, always protect your position or exit when there is a major trend change in the stock price. What to do? Unless you are a trader, stay out of this market until the downtrend reverses! Instead of losing money, at least your cash will earn a small return.
Meanwhile the FBI is trying to show that they are helping to fix things with an announcement of more than 400 arrests for mortgage related fraud, and by parading 2 former Bear Stearns fund managers before all the news cameras as they they were taken into custody (Bear Stearns kick started the sub-prime crisis last summer with the collapse of one of their hedge funds, then the entire Company itself collapsed and went on to being acquired by JP Morgan for a small pittance).
Next week we have a Fed meeting, and we also approach the end of the 2nd quarter.
News stories:
A Rough Week in a Rough Year for Stocks
Bank and economic fears drive Dow to 3-month low
RBS issues global stock and credit crash alert
Writedowns will hit US$1.3-trillion: fund company
Citi to suffer more 'substantial' writedowns
Banks Trimming Limits for Many on Credit Cards
Wall Street’s Fading Crush on G.E.
More than 400 Arrested in Mortgage Fraud Sting
Ex-Bear Stearns Fund Managers Taken Into Custody
There's nothing else the president can do to fix the economy.
Stocks and Indexes mentioned in this blog are for educational and illustration purposes only.
Other stories:
XP era ends: Will Vista step up?
Woman sues Victoria's Secret claiming thong injury
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