Why did the post-BLS rally from this morning fail to continue?
Probably because of the headline.
Europe isn’t fixed, as the twin downgrades from Fitch reminded everyone.
And if things were to go blamo, the US banks wouldn’t go unscathed.
All the biggies: Bank of America, GS, MS are off over 5% right now.
Plus, now everyone’s talking about this paper (via FT Alphaville) regarding all the billions in exposure that US banks have to Europe. It’s not some new information that just released, but then neither was that initial story from ZeroHedge about Morgan Stanley’s French exposure, and that got people freaked.
So here we are, on a quiet Friday, and the Dow is off 50, and the NASDAQ is off 1%.