"The current situation looks a lot like 1990 did at the bottom of one of the worst recessions the market has ever seen.
In 1990, Prince Alwaleed of Saudi Arabia bought a major stake in Citigroup, to make it solvent. This time Abu Dhabi is buying a small stake in the bank.
In a similar vein, the Fed finds itself in the same situation it was in then, when it realized it had to get involved and ease rates. Moreover, as the financials collapsed over a six-month period in 1990, the Dow declined 11% and bottomed. Right now the index is down by more than 10%.
During 1990, colossal banks merged. Today, market players learned Bank of America is talking about getting together with Citigroup.
All of these signs mean the financials are beginning to bottom now."
Post courtesy of thestreet.com