Markets pricing in a credit event at BofA and Citi

Things are going from bad to worse for our largest banks.

The activity in the nation’s banks suggests that investors believe they are circling the drain, zombies needing only a blow to the head once and for all, or facing an imminent restructuring at the hands of the government.
Among those hitting 52-week lows Thursday were Citigroup, regional banks Fifth Third Bancorp and BB&T Corp. and several credit-card companies, including American Express Co.
Citigroup fell as much as 14% Thursday to an intra-day low of $2.50, where the shares hadn’t traded since December 1991. Bank of America shares were down 14% to $3.86, just pennies shy of the 52-week low of $3.77 hit two weeks ago. Meanwhile, the credit-default swaps of the major banks also widened, suggesting greater fears about the ability of these companies to pay their debts (see table).

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That company is so evil, from offshore outsourcing American jobs to encouraging illegal immigrants and people who clearly could not afford mortgages get them to influencing more bad trade demanding changing bankruptcy laws so desperate people could not get out of their debts to predatory credit practices...

Well, I'm not sure of what the shocks will be to the U.S. economy but to me, getting these cats out of the corporate lobbying business and bad practices in the long run would be awesome. Unfortunately one of the biggest players in the financial sector running the government will probably come out unscathed, that's Goldman Sachs.

But Citigroup, especially with the bad China trade deal going down...I ain't gonna cry over it!

More to the serious side, any analysis on what kind of impact this is going to have on the economy both Pro and Con?