New Financial World Order

French President Nicholas Sarkozy is calling for a whole new world financial system. How insidious. I knew there would be calls for this at some point, as the crisis got worse.

Now “Frenchie” wants to propose a new system of checks and balances, as if the gloom and oppression that we all live under right now isn’t good enough.

Call me a conspiracy theorist and pay me now, but this is a prelude to the end. I know, it sounds wierdo bizzaro. Be advised that I am in complete command of all my faculties.I know of what I speak.

Do not be deceived.

This is the beginning of the end of capitalism as we know it.

Ok. That was fucked up. I kept peeking out of my trading turret today, with little encouragement. Rampant negativism, bordering on panic is setting in, thanks to the ass clowns in D.C., and their fuck-buddy banker friends. (Sorry to be so blunt).

Other than buy a little more [[FXP]] , I did nothing. I just sat and watched the mayhem. Over the past week, I’ve built my cash position up to 38%.  With 27% in bonds, 20% in stocks and 15% in ETFs of the various inverse variety—- I’m knocked down, but not knocked out.

The market is going through the meat grinder. This happens occasionally, when things get super-FUBARed,….. like right now.

Don’t panic, but do protect yourself from the mean-sprited clown fuckers and stupid politicians. Instead of moaning and whining to your compadres, as much as reasonably possible, try and get market neutral. Then figure things out from there.

Above all, maintain a positive outlook on life. Do something that makes you feel good about yourself. Throw ball pein hammers at politicians. Make a crank call to Hank Paulson and then hang up. Banks will fail. We will get past this. Life will go on (although in a somewhat “Road Warrior” fashion). You see, what we need to do is just be prepared for things to get worse. Batten down the hatches on your personal bunker. Stock up on some gold coins, guns, food and water if that makes you feel better. Keep things in perspective. It could be much worse.

Just when you thought things were really, really bad….the bottom is starting to fall out again.

Analysts are cutting estimates for many, many companies and downgrades are starting to gain momentum.

U.S. banks need new capital to the tune of $200 – $250 billion. European banks need at least that much.

Will the bailout work?

How much will the Treasury actually be paying for all the bad debt? (If someone uses the term “toxic” to describe the bad loans and debt, I’m going to bitch slap them. Think of another word.)

Will liquidity be restored to the markets with $700 billion?

Is this plan workable?

Watch the TED spread, LIBOR and credit spreads.

If spreads narrow, the market should begin to trade within a range.

If not, I think we could go down another 10% – 15%.

Just saying…….

With the politicians finally getting their shit together, a bailout is getting closer to becoming a reality.

This whole fancy mess is worse than egregious, but necessary, as you know. Hopefully, the market will learn to “forgive and forget” and banks stocks will become all the rage once again.

Here are a few beaten down financial names that are worth watching amidst all the fookery.

Cascade Bancorp [[CACB]] , buy on a break above $10

Comerica Incorporated [[CMA]] , buy above $36

Glimcher Realty Trust [[GRT]] , buy above $11

Hancock Holding Company [[HBHC]] , buy above $53

MasterCard Incorporated [[MA]] , buy on a break above $186

Regency Centers Corporation [[REG]] , buy above $67

WestAmerica Bancorp. [[WABC]] , buy above $59

Disclaimer: Costanza picks. Know what you’re doing when you buy financial stocks in our “bailout economy”.

Now looking to buy Research In Motion Limited (USA) [[RIMM]] on a break above $75, for a trade. Get some.

Disclaimer: Costanza trade.

The list has grown recently. In case you hadn’t noticed, on Tuesday, the SEC revised the Emergency Order issued on 09/18/08, which bans short sales on IFIs (Identified Financial Institutions). 

This glorious new list was amended to include the common stock of all of the following: 

Banks, S&Ls, broker/dealers, and insurance companies. Also, banks, savings associations, broker/dealers and insurance companies that are similar to those covered by statutory definitions but which are regulated by a foreign (rather than U.S.) regulatory authority. AND…. 

U.S. and foreign investment advisors, both registered and unregistered companies that control or have majority ownership of companies that meet one of the above criteria.

As far as I know, here is the complete list of 949 stocks……

In addition, think it’s reprehensible that Ford Motor Company [[F]] and General Motors Corporation [[GM]] are on the list.