Bank of America, the nation’s largest bank by assets, plunged 20 percent and Citigroup slid 16 percent, leading the KBW Bank Index (BKX) down 11 percent. It was the worst showing for the 24-company benchmark since April 20, 2009, when Bank of America told investors it was putting aside more money to cover a growing pool of uncollectible loans.
Meh. Those are the facts. They say that’s it’s quite connected to America’s downgrade and especially in the Asian markets, where Treasury securities are stockpiled there, which also continues to plummet. The thing is: if the U.S is not a AAA anymore then how can anyone be AAA? No one is not exposed to the U.S as a default risk. A lot of people seem to care what the S&P say.
Though, what I detest hearing is the often stated that ‘it has never happened before’. So what? Given a cow that is fed everyday, every single incremental day that it is fed will firm up the cows belief in the benevolent considerate humans. Then one day, the unexpected happens. The same hand that fed the cow wringed its neck and a revision of belief incurs. Past data can not sufficiently provide you with the confidence to forecast. But there you go..
But in all my experience, I have never been in any accident. . . of any sort worth speaking about. I have seen but one vessel in distress in all my years at sea. I never saw a wreck and never have been wrecked nor was I ever in any predicament that threatened to end in disaster of any sort.
E. J . Smith, Captain, RMS Titanic