While the cable chatter, commentators, or as I call desk clerks continue to whine about Obama and spending, the stock market is chaotic.
One thing for sure, Citibank and Bank of America will be saved by the government. These banks are too large and too intertwined internationally for this government to let fail. Thus, purchasing their stock, right now, would be a shrewd investment.
Citigroup closed yesterday at $1.02; Bank of America at 3.17.
I know that much of the uncertainty with these bank stocks are raveled with the housing crisis, but if the government will not let these bank fail, if you have the cash, this stock would be a good purchase.
The banking giant Citigroup commanded a stock price of $55 just two years ago. But at one point Thursday, as markets hurtled to their lowest close in 12 years, the shares were worth less than an item at the Dollar Store.
A share of General Motors stock, which fell below $2 on Thursday as it warned of possible bankruptcy, is now not even enough to buy a gallon of gasoline for your Chevy.
A share of General Electric, battered this week to little more than $6, would not be sufficient to buy two of the company’s compact fluorescent light bulbs. And at its current price of 73 cents, it would take several shares of Office Depot stock to buy a box of paper clips.
One caution, General Motors, I would let pass. I have written and with the rumors coming from GM itself that bankruptcy is eminent, the survival of this company is highly questionable right now. The government won't let all the American car companies fail, but they will let one go.
I believe it will be General Motors.