Anyone with half a peanut still in the shell could tell you financials led the market lower. The restructuring rumors from AMR didn't help much either. The numbers from GM were bad and that ticker was bangin' the lows.
There was a Jeff Macke look-a-like on CNBC saying how all these companies have all this cash. Well, the fact of the matter is, is that Banks (worldwide) are in trouble and those banks provide credit to companies to operate. In the depths of the credit crisis of of 08-09 almost all companies regardless of size were about to fold due to the fact that funding mechanisms were frozen...this crisis has the propensity to be much worse. Don't forget it was governments that bailed out banks during the last crisis and now we have banks AND governments that are in crisis. This is all in the face of an incredibly bipolar political environment.
We have people that don't trust banks or governments, banks that don't trust banks, and governments that don't trust banks whilst banks are uncertain of governments. Meanwhile the ISM number came out better than expected but last I checked ISM doesn't recapitalize banks.
Credit spreads blew out amongst financial institutions regardless of creed. The BAC website was shutdown most of the day in an effort to hinder depositor withdrawals (though the bank denies this)
There was nothing I saw that was particularly exciting or baffling. It was a typical day with Cramer and Bove pumping about to fail institutions and really just the teasing of an 08 crisis redux.
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