Sorry limited time this AM - 20 criminal probes into possible corruption of the $750 billion dollar government bailout have been opened;  Bank of America down 24% after earnings and Financial sector down  11.6% ;  Bears back in control of markets    

 

Kenlewis

Ken Lewis – Head of BOA

Major Fraud Suspected in Bailout

 20 cases of fraud into the $750 billion bailout program are being opened and this may just be the tip of the iceberg. Story from LA TimesCNN MoneyWashington Post/Reuters

Neil Barofsky - chief watchdog of bailout program released a 247 page report yesterday. Basic conclusion –  “TARP is ‘inherently vulnerable to fraud, waste and abuse.”

The report recommends the government abandon its partnership with private sector in buying toxic assets.

Bottom Line - Not good for confidence in stocks, the economy, the government & especially banks. As each case becomes apparent the call for banker’s heads will grow.

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

STOCKS

Big 3 to 4+% losses across the board on fears of bank nationalization and poor profits. Big volume. Short term momentum definitely turning negative.

Long Term Outlook = CAUTIOUSLY BEARISH

See Changes in STRATEGY, POSITIONS, & OVERVIEW sections of blog 

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING! 

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