Investors are dusting off their printouts with the promises made by the government as they moved to shore up the financial system a month or so ago. They vowed that no “systemically important” institution would be allowed to fail.
Despite that assurance, shares in Citi have fallen 20% today to $6.66 (Cue scary Twilight Zone music). Credit default swaps have widened out some and bonds are being scooped up at near-record high prices. Commercial real estate is the new boogeyman that has the market concerned.
Stocks are down 300, near 8100 and EUR/JPY trades at session lows of 120.45.
