(This story might be more meaningful if you read Bank of America vs the Economy show below. My article looks almost prophetic given this latest Wall Street report)
Financial woes return… Stock declines accelerated in midday trade, as the financial sector deepened its slide amid reports of more losses at Lehman Brothers and of a bail-out for mortgage giants Fannie Mae and Freddie Mac.
“It’s all about the financial sector again and these problems resurfacing,” said Peter Cardillo, chief market economist at Avalon Partners. “The market is wondering what is going to happen if the government really has to step in and bail out Freddie Mac and Fannie Mae.”
[BRIEFING.COM] The S&P 500 is trading just off its worst level of the session, currently down 1.5%, as all ten of the major economic sectors fall to session lows. Earlier there were a few pockets of strength, but now each sector is showing a loss.