Have the Financial stocks hit Bottom ??

[SHELLY]

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The next shoe has dropped: Merrill Lynch Drops a Size 22 on the Markets

$5.7 billion third-quarter write-down

Trying to raise $8.5 billion by selling new stock

:shock: Selling $30.6 billion of collateralized debt obligations (CDOs) for just $6.7 billion, or about 22 cents on the dollar!

A priceless quote from today's WSJ: "The move was described by a person close to Merrill as an effort to "lance the boil" that has resulted in more than $46 billion in write-downs since June 2007."
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Now this TOXIC CDO JUNK has a market value.

(Asian markets are none to happy right now--probably because they own tons of U.S. CDOs)

Interesting day ahead for Wall Street. (Maybe some more holders of financials will be taking profits off the table? Or maybe more "lancing of boils?")



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[goofer]

.
The next shoe has dropped: Merrill Lynch Drops a Size 22 on the Markets

$5.7 billion third-quarter write-down

Trying to raise $8.5 billion by selling new stock

:shock: Selling $30.6 billion of collateralized debt obligations (CDOs) for just $6.7 billion, or about 22 cents on the dollar!

A priceless quote from today's WSJ: "The move was described by a person close to Merrill as an effort to "lance the boil" that has resulted in more than $46 billion in write-downs since June 2007."
--------------------------------------------------------------

Now this TOXIC CDO JUNK has a market value.

(Asian markets are none to happy right now--probably because they own tons of U.S. CDOs)

Interesting day ahead for Wall Street. (Maybe some more holders of financials will be taking profits off the table? Or maybe more "lancing of boils?")



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This was an interesting day on Wall St. Dow up 266. BAC up 4 JPM up 3
WFC up 2.5 WB up 2 MER up 2. I am sure lots of short covering. Maybe this is a sea change but I wouldn't be surprised to see a retest of July 15 but in any event I am staying long my bank picks.