DOW sees worst June since the Great Depression

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Trooper_IHB

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<strong><span style="font-size: 15px;">U.S. Stocks Tumble, Sending Dow to Worst June Since Depression </span></strong>



<a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aMiZ9Wer8Wco&refer=home">Bloomberg sez</a>



<em>Lennar Corp. spurred declines in homebuilders after the company reported a loss that exceeded analysts' estimates as it cut prices to attract buyers. The shares fell $1.23, or 8.4 percent, to $13.34. The S&P;Supercomposite Homebuilding Index lost 5.6 percent as all 15 of its companies retreated. </em>
 
Troop.

Everthing is just peachy.

Oil is at $ 140.00

Citi lost 12% today. @ $ 7.60 Ouch

GM has a market value of 7 Billion @ $ 11.43 Lowest since 1955. Half the Market Cap of Avon.



The finacials are all toast until they come clean with assets and real balance sheets.

WAMU is just a hair above $ 5.00. DSL Downey is just $ 3.00

These 2 banks are just a breath away from demise.



Lookout below !!!!
 
The US consumer is KO on the floor. As soon as he tries to stand up and do something, one or more of the following 6 very nasty guys come and hit him in the chin:



- declining house prices

- high gas prices

- inflation, high commodity prices, high food prices

- weak US Dollar

- unemployment, uncertain job market

- tight credit, high debt service



The perfect storm! How unlucky for us that the housing bubble popped at the exact time where the pain is maximized.



It seems to me that we're witnessing a generational transfer of wealth from people in the below poverty line upto upper middle class to the SuperRich: Buffet, Ross, Boyle, etc.



Hint: Whenever Buffet releases what is he's been accumulating during all this period buy the ETF or Index for that category of assets, don't re-invent the wheel follow what successful people do.



In Bear markets things like houses, equities, etc. return to their rightful owners.
 
"In Bear markets things like houses, equities, etc. return to their rightful owners."



Well said. Play day is now over for the American consumer because they aren't giving away money any more like they use to. Hopefully all the party-ers will gracefully exit the homes they usurped from the prudent.
 
Well, today made it worser.



Gracefully exit the houses? Not!!



BankUnited, that I have a special grudge against, a regional is down to $1.10ish.

WaMu was in the 4s when last I checked.



Indymac--penny stock. I bet on Indymac.
 
Check out <a href="http://bigpicture.typepad.com/comments/2008/06/no-fear.html">Barry's comments </a>on this topic. And while you're there, be sure to take a gander at this chart pr0n (it's the VIX versus SPX). Gives one pause, does it not?



<img src="http://bigpicture.typepad.com/comments/images/2008/06/23/vix_spx_long_term.png" alt="" />
 
. what about the big elephant in the room nobody is addressing?

Read these recent statements from some of the world largest investment banks:





Fortis expects a complete collapse of the US financial markets within a few weeks.?



?The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.?



?This is the first test for central banks in 30 years and they have fluffed it. They have zero credibility, and the Fed is negative if that?s possible. It has lost all credibility,?-Barclays chief equity strategist Tim Bond



I know IR respects Mr. Mortgage....so WTF??!! I'm no doom and gloomer, but this has got my attention.



<strong>http://mrmortgage.ml-implode.com/2008/06/28/what-do-fleck-fortis-rbs-and-barclays-have-in-common/</strong>
 
Well its looking pretty ugly for the equity markets today.



Freddy and Fanny are both off 20% for the Morning.

FNM FRE

Thats going to leave a "mark".



Banking and Housing stocks just getting slaughtered.

Lennar is down to $ 10.40. Thats off 10% for today.

LEN



Wachovia is just turning to dust. Another 52 week low.

$ 13.60 Thats off almost 9% for the day.

WB. I bet they wish they never heard the word "California".
 
<strong><span style="font-size: 15px;">Stocks: Back to the bear</span></strong>



<em>NEW YORK (CNNMoney.com) -- Stocks slipped Monday, with the S&P;ending just a hair above the bear market levels that the Nasdaq and S&P;500 already sit in, as investors abandoned a late-day recovery attempt amid more financial market woes.</em>



<a href="http://money.cnn.com/2008/07/07/markets/markets_newyork/index.htm?postversion=2008070716">D'oh !</a>
 
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