Financial Sector Being Hammered

Starting from last week, stock market has been bear. Most notably, financial stocks are being hammered due to worries over US sovereign rating threatened by S&P.

This is really a simple math; if the country's credibility is down, banks based in the country needs to pay higher price to finance a dollar.

The biggest decline in the financial sector today was Bank of America (BAC). BAC has a larger exposure to Freddie Mac and Fannie Mae compared to its peers.

I saw market news in the canteen, but the reporter was kind of optimistic that the marker will make a quick come back. I kept on hearing the same at the beginning of financial crisis. I really hope that market participants will have a positive look soon.