Goldman Sachs (NYSE: GS) decided to it needs to correct the market a little more and issued a slew of downgrades.

Already yesterday it downgraded aerospace stocks, and today it went after financials and autos.

No sooner than we got used to the huge writeoffs and thought most of the fallout is behind us, that Goldman came today and whacked us on the head. "Over?" it laughed, "you wish!" It then proceeded to downgrade investment banks from Attractive to Neutral. Specifically, it downgraded Citigroup (NYSE: C) to Sell, urging investors to short sell it!

Citigroup will have another $8.9 billion in writedowns, William Tanona, the Goldman analyst said, and added Citigroup to Goldman's "Americas conviction sell" list, cutting his price target on the stock to $16 from $20. Citi shares are down 5.5%.

Merrill Lynch (NYSE: MER) has already been subject to rumors last week it would have to write down more assets. Today, the same Goldman analyst said it will likely incur $4.2 billion of write-downs in the second quarter. MER stock is down 4.5%.

At least Goldman shares have not been immune and are declining nearly 2.7% along with the rest of the investment banks and the market.

But that was not all, Goldman Sachs also downgraded autos and specifically it downgraded General Motors Corp. (NYSE: GM) to Sell, alarming investors by saying GM may need to raise money and cut its dividend as its cash flow deteriorates. Well, liquidity concerns are never a good thing. GM stock is down over 9.5%.

And if you think the Dow is alone, the Nasdaq's got its problems with RIM and Oracle dragging it down 2.4%.

Oracle (NASDAQ: ORCL) and Research in Motion (NASDAQ: RIMM) reported results Wednesday after the close. RIM's profit doubled during the quarter, but the results and guidance fell short of analysts' expectations. Oracle, on the other hand, posted very strong results, beating estimates. After investors cheered, pushing the stock price higher in after-hours trading, Oracle dampened investor sentiment later as it said the slowdown will increase in the traditionally sluggish summer months. ORCL shares are down 3% and RIMM shares down 12%.

So downgrades, profit outlook concerns and the economy. Not a good day for the markets!