"Bank of America Corp and Citigroup Inc shares plummeted for a sixth straight day on Friday, hammered by fears that the U.S. government could nationalize the banks, wiping out shareholders.Okay - so the story starts out talking about the last 6 days ... since the stim/spend bill was signed, but then they jump to an entire YEARs worth of statistics. It is more interesting to see what the month by month break down really is -- I have got a feeling the majority of it has happened in the last 3 months, from the time Obama won the election until now ...
Bank of America shares were down 19 percent to $3.20 in early trading, their lowest level since 1984, while Citigroup shares fell 20 percent to $2, their lowest price since the early 1990s.
Both stocks have lost more than 90 percent of their value in the last year."
Seems like a great time to buy stocks in these companies (very tempting to take whatever we get back from taxes and buy a bunch) but if they nationalize it sounds like investors loose EVERYTHING they put in -- the gov. won't even buy the stock from them.
So if the government nationalizes the banks, will that also wipe out the mortgages & credit card debts? I talking about people like my in-laws who are retired and on a fixed income ... they not only had their own mortgage but bought a house to rent to my sister-in-law so she would have a place to live ... both are thru Bank of Amer.
If the bank gets nationalized - will they then have to come up with ALL that money at once, would it stay the way it is now, or would they suddenly own both houses out-right? or worse, would the government then say that they will have to 'requalify' for a new loan? Actually I could see the government taking control of the land.