Monday, February 23, 2009

So Bad It's Good

Or something like that. Overseas markets are mostly strong and U.S. futures are perky. The main news is the sticky situation that is the Citigroup balance sheet is so bad that the Feds are going to have to step in and invest more.

The plan involves swapping preferred for common equity among other things, and is being viewed by the market as a much better outcome that what Citi had coming to it otherwise.

Back at the auto ranch
, GM is trading up nearly 20% in the premarket as Treasury reportedly is getting financing together for a $40 billion bankruptcy loan. The early leader for quote of the day:

"Lenders are reluctant to commit funding to GM or Chrysler for several reasons -- mostly concern they won't get all their money back."

Not good. Down is still bad and these $2 stocks are all over the place.

1 comment:

PCR said...

zippy headline - I like it. Now if we could get just good - all good - goodness