Wall Street came back from vacation and decided what we all found out last week was true - no one knows anything about what is going on with banking, again, so it's got to be marked down.
My sense is that half of the last quarter's losses, at some banks, may be due to the huge surge in U.S. Treasury prices, especially if folks were using them as liquid hedges.
As before, no *one* seems to have all the facts of the situation. Accordingly, there are prescriptions without description...
Indicators of economic activity around the world ... also weak.
update: oh, here's my favorite headline to illustrate my point, "Citi and BofA: Too Big to Fail -- or to Succeed?".
Tuesday, January 20, 2009
Back in the Real World: "Pound falls to 7-1/2 year low vs dollar"
