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Whoa … Citi going down?

Okay; I can honestly say that I didn’t see this happening. I figured that Citigroup, like Bank of America and JP Morgan Chase, would both be strong enough to weather almost anything the economy could throw at them, but their recent stock movements are highly precipitous.

Citi Weighs Its Options, Including Firm’s Sale – WSJ.com

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Okay, time to dial it back …

We all know what happened yesterday, with the DJIA closing up 936 points. As happy as I was to see it, Morgan Stanley‘s 88% gain in a single day seems almost as irrational as the fears that pushed it down as low as it got.

Early news seems to be indicating that the market should [...]

Which world are we in?

Richard Baldwin, Professor of International Economics at the University of Geneva, in Switzerland, has the following to say at Economist.com:

Crisis roundtable: Which world are we in? | Free exchange | Economist.com

It seems that banks and bank-like financial firms have two fundamental problems:

1) An investment problem.

They have investments that cannot be traded [...]

SEC bans short selling for financials

SEC bans short selling for financials – Sep. 19, 2008

Agency puts temporary halt to trading practice that ‘threatens investors and capital markets’ for 799 financial companies.

NEW YORK (CNNMoney.com) — The U.S. Securities and Exchange Commission took what it called “emergency action” Friday and temporarily banned investors from short-selling 799 financial companies.

The temporary [...]