The financial "axe" slammed Citigroup yesterday, and today, Merrill and UBS were in her cross-hairs with lowered estimates. The writedown for Merrill is now $6 billion for the quarter (versus $2 billion) and a $3 loss, and UBS is now projected to lose $2.75 for the quarter.
At some point, being right on the fundamentals for the financials will be wrong on the price of the stock.
And if you're short, you should use the opportunity given to you by Meredith to take off your shorts, and cover, now that we have the Bank of England and the ECB rumbling about taking much larger action in the markets.
Here's what the FT had to say:
The Bank of England is poised to take revolutionary action to find a “resolution” to the problems faced by British banks unable to sell or refinance portfolios of mortgage-backed debt, Mervyn King, the governor, signalled on Wednesday.
Mr King also suggested that the Bank was becoming more open to interest rate cuts. His comments came as Hank Paulson, US Treasury secretary, offered strong support for the Federal Reserve’s handling of the Bear Stearns crisis.