Bakersfield's Official Real Estate and Economic Site
U.S. stocks close lower as HSBC warns on lending"It has been very unusual in recent years for a major bank to issue a profit warning, especially related to deteriorating credit quality, so this announcement will generate plenty of headlines," said Simon Adamson, a banking analyst at CreditSights, in a note.HSBC's warning put pressure on other financial services companies' stocks and could also restart the debate as to whether a cooling housing market's woes will spill over into the broader economy. Declining wealth from home values threatens to hit consumption. And "the quality of job creation is poor, replacing manufacturing jobs with service jobs, which is not creating a big enhancement to consumer demand," said Robert Smith, director of portfolio strategy at Smith Affiliated Capital."
Another subprime lender whore goes down the drain.
Wow. Never saw that coming ;)
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