Quote:.......The following are 18 signs that global financial markets smell blood in the water....
#1 Banks stocks are absolutely getting hammered right now. Bank of America hit a 52 week low on Monday. Bank of America shares declined 4 percent to $9.61.
#2 So far this year, Bank of America stock is down about 27 percent.
#3 Bloomberg is reporting that Bank of America may be forced to increase its capital cushion by 50 billion dollars.
#4 Shares of Goldman Sachs and Morgan Stanley are near two year lows.
#5 Shares in Citigroup fell 2.5 percent on Monday.
#6 Moody's recently warned that it may be forced to downgrade the debt ratings of Bank of America, Citigroup and Wells Fargo.
#7 Barclays Capital, Goldman Sachs, Bank of America, JPMorgan Chase and Morgan Stanley are all either considering staff cuts or are already laying workers off.
#8 The deputy European director of the International Monetary Fund says that the Greek debt crisis is "on a knife's edge".
#9 Moody's has slashed Ireland's bond rating all the way to junk status.
#10 The yield on 2 year Portuguese bonds is now over 20 percent, the yield on 2 year Irish bonds is now over 23 percent and the yield on 2 year Greek bonds is now over 35 percent.
#11 Shares of Italy's largest bank dropped by a whopping 6.4% on Monday.
#12 On Monday, the yield on 10 year Italian bonds was the highest it has been since the euro was adopted.
#13 On Monday, the yield on 10 year Spanish bonds was also the highest it has been since the euro was adopted.
#14 Shares of Germany's largest bank fell by a staggering 7% on Monday and are down a total of 22% so far this month.
#15 Citigroup's chief economist, William Buiter, says that without direct intervention by the ECB there is going to be a wave of sovereign defaults across Europe....
"Nothing stands in the way of multiple sovereign defaults except the ECB: they are the only game in town, there is nothing else"
#16 Cisco has announced plans to axe 16 percent of its workers.
#17 Borders Group has announced that it will be liquidating all remaining assets. That means that 399 stores will be closed and 10,700 workers will lose their jobs.
#18 During times of great crisis, many investors seek safe havens for their money. On Monday, the price of gold shot past $1600 an ounce.
These are not normal financial times. The worldwide debt bubble is starting to burst and nobody is quite sure what is going to happen next. Certainly we are going to continue to see financial authorities all over the world do their best to keep the system going. But as we saw in 2008, things can spiral out of control very quickly......