How much money did Bush pump into the financial services sector in the last few months?Anywhere from 500 billion to over a trillion, yet Citi’s decline continues.
This is why the invisible hand of market forces and not chucking aside free market principles is the proper way to revitalize the economy.
After a tentative stab higher in the early days of this year, stocks slumped last week as evidence of economic weakness mounted. A grim employment report contributed to a sharp fall in stocks on Friday, leaving stocks down 4.8% on the week.
Financial stocks were also battered after a series of developments raised fresh questions about major lenders. Citigroup fell 11.4% on reports that it may sell a controlling stake in its Smith Barney brokerage unit to rivalMorgan Stanley. Shares of Morgan, which is not a Dow stock, were up 2.2%. But the broader financial sector traded in the red despite those gains. Bank of America, a Citi rival and Dow component, was off by 9.2%.
The S&P 500 was recently off 1.7%, trading at 875.31. The Nasdaq Composite Index slid 1.7% to 1545.67. The small-stock Russell 2000 fell 1.3% to 474.98.
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