The Wallet Is Emptying

When I turned bearish in 2004 there were two stocks I was using as my barometers of the nation's economic health. One was General Motors and the other, based on our new financially innovative economy, was Capital One Financial. That's it. I figured those two would probably be enough.

So how are my barometers doing today?

Capital One's Capital Loss
In a Tuesday filing, the financial services company said its losses will be larger than expected in 2008, due to rising deliquencies and home foreclosures. Although the housing sector's health remains uncertain, the company stands to lose roughly half a billion more than previously forecasted.

The news apparently disturbed investors: Shares of Capital One (nyse: COF - news - people ) plunged 11.9%, or $7.09, to $52.35 in afternoon trading.

General Motors Loses $39 Billion
DETROIT (AP) -- General Motors Corp. posted a company record $39 billion loss Wednesday for the third quarter, as a charge involving unused tax credits brought an abrupt end to a string of three profitable quarters for the nation's largest automaker.

Had my crystal ball seen this day three years ago (when the market cap of both companies was higher even in non-inflation adjusted dollars), I would have figured one of two things would be happening right now.

1. The stock market would be high thanks to an unstable currency (pushing all prices higher).
2. The stock market would be low thanks to a stable currency (pushing all prices where they deserved to be).

I'd say we opted for the former, but hey, maybe that's just me.

See Also:
MaxedOutMama: Guys, It's Over