It's Not 2008
How about this? On a rebounding day, let's play 2008. Let's see if it makes sense, especially in light of the fact that we could rally today when everyone figured we would get another shellacking. If this is 2008, then the following would happen: Many of the large financials would get wiped out. Under a 2008 scenario, the U.S. government has to take a stake in Bank of America (BAC) and dilute the common.
The dividends of all banks would be suspended. Wells Fargo (WFC) and Morgan Stanley (MS), trading around $12.63, would trade to $7, and this time Morgan Stanley would get bought by somebody. Maybe a shotgun merger with Goldman Sachs (GS), now trading around $89, would go to $48. The U.S. government would have to bail out General Motors (GM), again. This time Ford (F) would have to go – its balance sheet doesn't have enough cash. This time, Buffett doesn't have enough money, because he already bought a lot of stuff....619 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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