The Equity Markets Continue to Plunge
Nov 21, 2008
Posted by Jody Eisenman | Filed under Uncategorized
Yesterday, the S &P declined another 6.7%. It is now trading at an 11 year low. NASDAQ is down an incredible 13.2% for the week and 23.5% for the month of November. Of course, this is on top of a horrendous September and October. The financial stocks are dropping like rocks. Here are some numbers (and this is just over the last 4 days!)
Stock Close Nov 14 Close Nov 20
Citicorp 9.52 4.71
General Electric 16.02 12.84
Morgan Stanley 12.03 9.20
Bank of America 16.42 11.25
JP Morgan 34.47 23.38
Citicorp may be forced to seek a merger candidate due to a sharp slide in their share price. The auto makers are not getting a bailout right now. Unemployment is soaring. Consumer spending has ground to a halt. What you are seeing is a tremendous deleveraging of our entire financial system.
Here is an excellent article from Forbes by Nouriel Roubini: Link
Today’s opening looks higher, but where we close is anyone’s guess.
