Your assets in banks safe?

It starts to happen. Slowly, the government nationalized the banks. You do not want to admit to the investing public ... but they are slowly taking control of any large institution. Citigroup (C) is a perfect example.

First, they gave $ 25000000000 increase loan. Now the preferred stock is converted into shares. This is outside of the U.S. government the largest shareholder.

Now remember, this money did not come free. They had to payregular dividend to the government. Then the government will exercise, the limits of what that money could be used. Then the government changed the corporate structure of compensation.

Do not know about you, but I think the more the government can make our day to day operational decisions.

With the conversion of preference shares in common, the government now owns approximately 36% of Citigroup.

Not a big problem (if you have a field). But, alas, you should ownhas in that company. The government is massively diluted shareholders. As a shareholder of your slice of the pie Citigroup has done a lot smaller.

Now, do not want to discuss this action by the government are wrong ... large banks and insurance companies that become more leveraged-yes, they deserve. (In my opinion, some are forced into bankruptcy ... AIG). With Citibank, is much more painful, because their once dominantSize.

Now I have a critical question.

Can the Bank of America (BAC) is far behind?

The winner in today's market environment is difficult. I think the bank failures to about a massive catastrophe that we are in the belly of the beast on this recession. We have seen the worst of news. Once a few more of these large financial groups or fail or are broken up, and (Citigroup and AIG) has sold, we see further stabilize the market.

In times like these, the largestInvestors demand is simple: My activities are safe?

As for the banks to go ... Yes Assuming you invest your money in a bank FDIC insured, and limit the size accounts with $ 250,000. In these cases, the state guarantees the money.

Now your investment is another matter.

If you hold Citigroup not blame me. I said that for over a year ... Of all financial securities. It 'really ugly and everyday investors are caughtup in the crossfire.

So who wins in the financial sector? Must be one or two winners in the financial sector. In fact, all the banks can not get away. I think we will learn that the winners in the financial sector this year. I go to large banks to monitor.

The stronger and healthier to be stronger out of this turmoil the biggest, and I think more profitable than ever. Like vultures in the desert, they collect the goodOther pieces of failed banks. The new equipment and companies who buy this year (downward) will be in a few billion years from now.

For me, the top winner of Goldman Sachs (GS) are, JP Morgan (JPM) and Wells Fargo (WFC) are. I'm sure there will be others, but these are the most obvious. Now, I'm not saying run out and buy this now. I say a closer look. If we find a good entry point would be that the time for action.

For now, keep your head down ... andStay away from the financial sector.

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