Buy financial stocks?

[SeanEdwards]

The banks have been getting hammered and their stock values are at record lows. It seems plausible that when the fedgov steps in and relieves them of their toxic mortgage backed securities, that these financial institution's stocks will shoot up like mad.

/discuss

[socialize_me]

Yep!! They will...plus the SEC has banned short selling on all financial stocks which means there's really nothing to push them down to their true price levels...sad sad

[Cowlesy]

Wachovia Bank was down 30% on Friday for quite a period of time.

Kind of hard to blame the rapid decline of the stock on the short sellers, eh SEC?

I want to see if credit default spreads contract tomorrow, and if the LIBOR rates come down.

If I were a bank, and I just dumped all the shit off my balance sheet and received a wad of cash, I certainly wouldn't go right out and lend it to the same people who were behind/defaulting on all the loans that started this melee.

[angelatc]

http://finance.google.com/finance?client=ob&q=NYSE:RJF

These guys are very conservative.