Watching the Financial Stocks

Watching the Dow is always a questionable metric for evaluating the merits of policy decisions the government announces. But it’s worth looking particularly closely at the reactions of financial stocks, particularly bank stocks — and how the swings in their value are perceived. A real solution to the present crisis probably involves wiping out the shareholders in the bank. So as investors see that on the horizon, if we ever get there, it will only be logical for people to try to unload those stocks.