Even Good news makes Stocks CRASH LMAO, its so good being a BEAR
When the Government did not save Lehman stocks went on a historic 3 month Crash Sept-Nov.
Now the government does the opposite and saves Citicorp and bank stocks crash on good news that Citi won't go bankrupt in the near-term. HMM sounds like its just too easy being a BEAR in this market. No matter what the news is stocks will go down.
NEW YORK – The U.S. government will exchange up to $25 billion in emergency bailout money it provided Citigroup Inc. for as much as a 36 percent equity stake in the struggling bank.
The deal announced Friday — the third attempt at a rescue plan for Citigroup in the past five months — is contingent on private investors also agreeing to a similar swap.
The aim is to keep the New York bank holding company alive and bolster its capital as it faces growing losses amid the intensifying global recession. Existing shareholders would see their ownership stake shrink to as litte as 26 percent and the bank said it is eliminating all dividends on common shares.
Investors appeared disappointed in the deal and expected dilution of their stake, sending shares plummeting 94 cents, or 32.8 percent, to $1.56 in premarket trading. The news also dragged down stock futures ahead of Friday's market opening.