Financials: Down, Down, Down

In looking at the wall-to-wall sell-off in financials today it feels like the market is essentially saying "More than one of you major banks and brokers is going under, so until we know which one, you're all being sold."

How else to explain the undiscerning, heavy selling going on in all of these names on little more than some some Lehman musing about a Freddie/Fannie-related proposed new accounting rule that won't likely come into affect anyway?

click to enlarge

[via Finviz]

Comments

[BS Detector]

Long term, the sector's undervalued. Which firms are in better shape and which are in worse shape? I dunno.

XLF. Add to it as we go.

[helplessobserver]

My guess is Wacovia Bank will have to be reorganized wiping out its shareholders.

[Georealist]

Fantastic! The commentors have more insight than the writer! Did it take all your energy posing for the picture...or did you actually have any thoughts lurking in that nicely shaped head???

[Bingo 2]

What gifted insight- Clowns like you[ Kedrosky] are partly responsible for the downward spiral of our banks. Just where do you think our banks will go- Our ENTIRE economic system revolves on banks. We will come out of it when the present administration is replaced- in the mean time- some banks like Wachovia are bottom floor buys. As soon as the talking heads realize this-they will start to rise- it may take a year or so but it will happen.