Another manic Monday

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As The Bangles* said, ‘Just another manic Monday, I wish it was Sunday.’ Elements of this particular Manic Monday include:

--Citi Selloff: ‘Goldman Sachs downgraded Citigroup to ‘sell’ from ‘neutral,’ and said the largest U.S. bank may have to write off $15 billion over the next two quarters as mortgage losses reduce earnings.’ (Reuters via CNBC.com)

--Homebuilder Blues: Home builder sentiment stayed at a record low in November, as builders reported that special sales incenties are ‘having limited success in terms of getting buyers in the door.’

--Agency angst: ‘Shares of Fannie Mae and Freddie Mac sank to 10-year lows on Monday over new worries that a spike in U.S. home foreclosures will boost losses at the two mortgage finance companies.’

--More coming: ‘Minneapolis Federal Reserve Bank President Gary Stern said on Monday he expected the U.S. housing market to weaken further because of a large pool of unsold homes.’

--Lastly, the Dow fell 218 points, closing below 13,000 (LATimes.com).

Analysis: If we’re in a housing and credit slump, and there is more bad news to come -- which is pretty much the conventional wisdom right now -- why does the market insist on being surprised every time some of this expected deterioration comes to pass? I like what Lou Barnes wrote on this topic on Nov. 9:

‘In times of plague, wagons and carts each day clattered through cities and towns, the draymen calling, “Bring out your dead!” So it is on Wall Street today. You would think by now that surprise would have faded at the number and identity of new shrouds, contagion perfectly obvious. But, no, the secretive and blame-shifting culture of Wall Street is intact, markets as shocked each new day as the last.

Your thoughts? Comments? Email story tips to lalandblog@yahoo.com
*The Bangles? Yes, mid-80’s pop. 1986, to be exact.