‘Stock Market Takes Hit from Financial Stocks’

On Monday the Dow Jones Stock Market took a big hit coming after the New York Times reported a lawsuit from AIG to Bank of America.  The lawsuit is over $10 Billion dollars in damages from BofA for misrepresentations on mortgage-backed securities that AIG insured.  Following the release of the story BofA stock took a huge hit, dropping more than 20% closing at $6.52.  The stock market also took a hit after Standard and Poor downgraded the U.S. debt rating from a AAA rating to a AA rating, investors braced for a massive sell-off and prices plummeted.  Still holding strong, the price of Gold jumped $70 making the price of gold per ounce a whopping $1,721.
The Dow Jones fell 631 points, making it the sixth worst day of trading in the history of the Dow Jones Industrial Average.  Monday’s slide took down nearly every financial stock including JPMorgan Chase, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley

My opinion:  This is not a huge deal, for this morning there has already been large turnarounds for investors buying off the cheap stock.  It will however cause another variable in the economy, staging off recovery until the stock market is corrected.


Matt Ullrich
RE/MAX of Boulder, realtor
303.941.2452.cell
303.415.2251.office