And AIG is coming back for more bailout after it has received $150B government aids. Citigroup is also not getting any better after receiving $50B bailout. With these insitutions in such a dire state, you would think the price of all the financial stocks are going to zero. Look closely, you'll be surprise.
Although Wall St. will never be the same after Bear Stearns being melted into JP Morgan, BAC got stuck with Merrill Lynch, and Lehman Brothers went bankrupted. But the last two Investment Banks on Wall Street (oops, they call themselves Bank Holdings Company now), Goldman Sachs (GS) and Morgan Stanley (MS) are the survivors of Wall St. Their stock prices are far from zero.
To the contrary, they are trending up. The stock of these two survivors of Wall Street seem to be turning around. Could this turn around in their stock prices a temporary one or are things in the financial market starting to turn for the better, or maybe simply the worst have been seen. For whatever reasons, it appears GS & MS have survived the turmoil of Wall St. GS is saying it wants to pay the government back the TARP money it has received soon. MS said it didn't need the TARP money when it was forced to take it then and it doesn't need the TARP money now.
Not sure if it is time to invest in GS & MS, but definitely they have presented a trading opportunity. Keep you eyes open. If the market is near bottoming, there are many more opportunities like GS & MS.
