I am giving out emergency asshat awards, first thing tomorrow morning. I am having the trophies shined up real nice, right now.
In the meantime, American International Group, Inc. [[AIG]] just had their debt downgraded for them. It’s all over. They will be filing for bankruptcy protection by Wednesday, despite what you SKF to $80 tools say.
The gravity of a sitting Dow 30 component filing bankruptcy protection is huge, and entirely fucktarded, all at once.
Aside from the massive amount of exposure to AIG debt and preferreds, remember who is long the common, for they will be assclown fucked in early trading tomorrow. My favorite shorts are [[AXA]] and [[LM]].
AXA (ADR) (AXA: 28.13 -10.90%) : 161 million shares
State Street Corporation (STT: 69.53 -3.03%) : 96 million shares
Barclays PLC (ADR) (BCS: 21.48 -14.69%) : 94 million shares
The Bank of New York Mellon Corporation (BK: 36.56 -8.49%) : 31 million shares
Legg Mason, Inc. (LM: 36.30 -10.15%) : 29 million shares
Northern Trust Corporation (NTRS: 84.09 -3.44%) : 29 million shares
T. Rowe Price Group, Inc. (TROW: 53.98 -6.02%) : 23 million shares
Janus Capital Group Inc. (JNS: 21.67 -8.60%) : 19 million shares
Goldman Sachs Group, Inc. (GS: 135.50 -12.13%) : 17 million shares
Morgan Stanley (MS: 32.19 -13.54%) : 16 million shares
Bank of America Corporation (BAC: 26.55 -21.31%) : 16 million shares.
As far as the debt is concerned, the holders are foreign governments and large banking institutions. Essentially, this credit crisis destroyed the fucking world as we know it, yet the SEC and the fucking assholes from FINRA are too busy going after penny stock promoters. Fucking asshole motherfuckers.
Can someone please go to jail for this? Anyone?
Maybe we can start off with the tanned man in the Lambo?
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I don’t think the trophy as enough space for the engravings.
There needs to be a special award just for Kudlow. Or an award named after him.
I really like to go to the golf range at night and bring my laptop so I can go on TDAmeritrade.
Evil Fly & his proud schadenfreude is back with a $%^&* VENGEANCE
S&P just dropped the bomb on AIG.
Will The Fed blink?
Three month dropped to fitty basis pt “embedded cut” already today.
Good as done.
Again, not sure it does anything but make PM’s a screaming buy.
__
Faber on CNBC just said that AIG needs to raise $75 B within 24 hours or bankruptcy on Wednesday…
Moody’s just did it too … downgrade.
Kick that dead horse.
FLY, better tell Caj Moody’s just lowered rating on AIG – not good, developing tho…
I got $100 I can loan to AIG
I just can’t see AIG going under. Will the newly formed USSA not jump in? In an election year? In a game of chicken the govt always blinks. And Cramer always gets his way. He’s going to have an aneurysm tomorrow if nothing happens.
Although maybe Buffet has let people know that if they go bankrupt he will swoop in and save main street.
Very high stakes poker going on . Someone will blink. Lets see who it is.
Eye got a truck load of pig shit I can donate to AIG. After I dump it on their corporate headquarters doorstep, I’ll take some bonds off their hands at a big discount, and laugh all the way to the bank in spring ’09.
AIG is done. they need to be broken up and sold off. there’s no reason for a fucking insurance company to carry a trillion dollar balance sheet. that’s horse shitery.
Good Fly!
SKF will gap the shit open once again!
150 or so and then the run back to 200 is on.
Simple Zombie TA there.
There’s nothing Benny can do at this point, except beg The Fly for assistance.
The Fly is God.
I guess I need to do my own karma buttons:
recusany +1
Juice +1
JakeGint +1
PharmPhucker +1.
There, now I feel better.
Oops. Zombie +1
It’s a Bearded Ballerina Clown, aka Californication.
rag +1
I can’t keep this up. I have stuff to do like sleep. Please get the karma buttons back.
There is a line a mile long of companies with their hands out, besides AIG, asking me (Unkle Sam) for money.
Sorry folks, I’m tapped out.
Better get down to your local bank branch early and get yur money out while their doors are still open.
Clown Fucked— why does that shit make me laugh in front of my screen. Its funny to begin with and even funnier with “THE FLY” off probation.
You think there is any cocaine going on at CNBC today?
The Fed’s gonna screw with everyone tomorrow by NOT dropping rates! They gotta keep some ammo for when it gets “really” bad!!!!!
if AIG is removed from the Dow, what companies are the most likely replacements? I feel like I should know this but I’m drawing a blank tonight.
http://gizmodo.com/5050221/apple-employee-posts-job-description-on-linkedin-divulges-future-iphone-cpu-plans
Ok, TC. I’ll take over.
TraderCaddy +1
mrkcbill +1
The Zombie -2
I just don’t see how GS can possibly have any kind of earnings that will rally the stock. All their bets on comms must have crashed toward the end of the quarter. Maybe they shorted the diarrhea out of themselves and LEH during the q to make it up?
dude…nice stuff. you are on it.
Breaking: Pope blesses replacement of AIG in DJI with MVIS.
Fly- What does your time machine tell you regarding mandating a central clearinghouse to eliminate counter party risk? Any thoughts on CME and this potential?
Glad to have you the profanity ridden language back, Fly.
P.S. Nice increase in traffic to the site today.
What were the only asset classes up today?
Gold, t-bills, cocoa & wheat.
Its gonna be every man for himself tomorrow. Again.
———–
For those interested – Ron Paul on his love of Gold & hate of paper money & those that force their citizens to traffic in paper moolah.
Part 1
Part 2
Part 3
FLY,
congrats on sub 11,000 😉
BXP short thoughts? LEH is 8th largest tenant… hmmmm!
we added PUTS of POWER today.
I missed this today:
Industrial production drops 1.1% in August
Motor vehicle output plunges 11.9%, says Federal Reserve
http://www.marketwatch.com/news/story/industrial-production-drops-11-august/story.aspx?guid={4DCB99AE-7810-4247-BC7C-7F73EEDB362D}&dist=msr_11
Clearinghouse?
Not a chance. The only way we get out of this mess is through bringing it all down.
i’m probably in the minority, but i don’t think GS is going to have huge commodity-related losses. at least not on the scale that people seem to be speculating. the only reason i think that is because they’re master risk managers/market manipulators. obviously far from perfect but still better than most.
still, not a reason to own the stock in this environment.
Woohoo Wamu?
WaMu deposit base is still strong. Can meet debt obligations through 2010 and no short term liquidity problems – they could make it, or get bought at a price closer to $10/sh
http://www.believemerch.com/product/bernard-pollard-fan-club-red-tee
Jake- get you one of these!
FRANCE overtakes CHINA as world’s 4th largest stock market. That’s gotta hurt. My heart goes out to the people of China in their time of need.
Fly & boca,
Thanks for a hopefully profitable idea you gave me.
Developing…
any thoughts on PNRA? I like their carbs.
http://finance.yahoo.com/q?s=PNRA
Fly remember the calm CNBC party hats when you were maintaining crameralerts.blogspot? Those were the good all days when we didn’t even know what we were being setup for, the days of Broker A and going all in on BWLD or some fucked up retarded company being promoted by Dan Marino. Oh how I long for the humble beginnings. By the way did you ever “officially” get sued by that bumbling clown’s posse or did they just send a cease letter?
SKF will soon be at $170, prepare.
They were scared to sue me.
Gonna be buying some DXO when oil hits $88 for oil’s 3rd wave to $185. Bought QID last week. It’s going to $58 -$59. Burning down the house…FUCK krudlow and crapper.
What happened to the guy who wrote that “rape is not funny unless your being raped by a clown?” We need an update!!!!! Maybe a “sequel” to that post by the same guy.
That was hands-down the best shit EVER in the peanut gallery. And with the firestorm of shit flying in everyone’s face — from AIG, to WAMU, to commodities, to the Fed meeting, there’s way too much material not to have a field day.
-Phil
09/15/08 05:21 pm ET … S&P REITERATES BUY RECOMMENDATION ON SHARES OF VALERO ENERGY (VLO 31.19****): VLO shares followed energy prices down today amid concerns that energy demand may weaken. With 20% of U.S. refining capacity shut-in and gasoline inventories low, we expect U.S. gasoline prices to temporarily rise. VLO has 3 Gulf of Mexico refineries shut-in (18% of refining capacity), but reports no significant damage. Based on revised margin projections, we raise our ’08 EPS estimate by $0.13 to $3.50 and ’09’s by $1.08 to $4.36. Blending our DCF into lower relative valuations, we trim our target price by $2 to $43, an expected enterprise value of 5.3X our ’09 EBITDA estimate. /T.Vital
Wall Street just broke down in the stretch and Yonkers Racecourse.
Egregious.
What’s more egregious is where the fuck are the karma points?
Did they get place into receivership?
Danny?
Bueller?
Some cuntslach hacked our site and initiated a DOS attack through the comments so Vincenzo the IT guy just disabled the plugin.
I’m sure he is working on someway to reincorporate comment rating but didn’t want to interfere with the site’s functioning during such critical days.
Serious?
Was it Dick(head) Fuld?
no, it was punyandy
Glad to hear you curse again….or it that to see it in writing.
Fly-
Time to get your shit straight. Many of the banks you list as holders of AIG common hold those shares/debt as custody agent in custody accounts. That simply means they are holding the shares for others. State Street Bank is well known as one of the largest custody banks in the industry.
When held in custody accounts, the shares of AIG will NOT hurt the custody agent, only the underlying owner.
Check it out.
Fly – Will you get rid of your WB position today?
Just grabbed some DELL pm, why must I do this crap to myself 😀
Does anyone get the feeling that 10,000 to 9,000 will be really quick? In honor of this next down 1,000 dow points…I will blog nude and not shave until this thing hits 9,000.
nahnahnahnah
Hey ayyy goodbye
why do i get the feeling i will be telling my grankids about this day
All financial institutions as well as guys like Paulson should have poop slung at them, as they are strapped to a rocket sent to mars, where things get real heavy and they can finally hold some weight on their shoulders… eye for an eye sort of thing.
Afternoon Rate Cut
Alan Farley
9/16/08 8:53 AM EDT
It seems obvious we’re going to get an afternoon rate cut, maybe as high as .50%. That’s why the government isn’t doing more jawboning, with all the crisis stocks on everyone’s radar.
What I don’t get is the market’s reaction right now because the prospect isn’t supporting the tape at all.
That raises two possible scenarios, First, a headfake now/kill the shorts later. Second, it doesn’t really matter because we’re in collapse mode.
My gut says it does really matter and we’ll finish the day much higher, as long as the rate cut is a decent size.
Position: flat
Alan Farley
VIX
9/16/2008 9:08 AM EDT
VIX peaked at 37.50 in August 2007 and 37.57 in January of this year.
We’re going to open between 32 and 35 this morning. Those levels are being watched closely and should attract buyers/bottom feeders if/when hit.
Position: flat
Kass: 10 Rumors on Wall Street
By Doug Kass
RealMoney Silver Contributor
9/16/2008 9:00 AM EDT
URL: http://www.thestreet.com/p/newsanalysis/investing/10437559.html
This blog post originally appeared on RealMoney Silver on Sept. 16 at 7:22 a.m. EDT.
1. The hedge fund industry, mired in poor investment returns and under the threat of redemptions, is in an increasingly fragile state. Importantly, prices and performance in many different and historically uncorrelated asset classes are all falling in unison. As a consequence, many of the multi-strategy funds are also suffering more than usual.
2. Even established hedge funds, like T. Boone Pickens’ Partnership, and endowments, like Harvard University’s, are alleged to have recently suffered large losses over the last two to three months.
3. Long/short managers are poorly positioned in the short consumer/long materials and energy trade, serving to contribute to the abysmal overall hedge fund results.
4. Conventional asset managers are also getting hit hard. A recurring rumor is that Legg Mason’s (LM) Bill Miller is about to be replaced.
5. Goldman Sachs (GS) and General Electric (GE) are alleged to have suffered recently (in several profit centers) from their historically close relationship with American International Group (AIG) . Over here and over there (in Europe), several large U.S. non-financial corporations and European banks will shortly announce substantial derivative losses.
6. Lehman Brothers (LEH) has liquidated sizeable positions from its prop desk in a wide array of assets over the last few weeks. For example, yesterday Lehman is believed to have disposed of a number of REIT stocks held by its desk, contributing to a nearly 9% drop in the REIT index on Monday — and an almost 3% drop in the last 15 minutes of trading alone. Late last week, Lehman was dumping its commodities positions.
7. Of the eight companies I have contacted over the last two weeks, only one (in the bankruptcy/recovery area) saw clear business visibility.
8. New homebuilding, in particular, has slowed to a crawl. Buyer traffic/interest is virtually nonexistent.
9. The Federal Reserve will not lower interest rates at today’s meeting as the Fed views broader issues of solvency and liquidity as trumping the level of interest rates for now.
10. The current Administration has not been meaningfully involved in the Fannie Mae (FNM) /Freddie Mac (FRE) rescue or in the AIG discussions, nor has the Administration assisted much in the dialogue and establishment of the new lending facilities implemented over the last three weeks.
oh gawd I’m not sure I can handle that visual MrKCBill. That is more bothersome than the thought of the Dow hitting 9000.
Unrelated to mrkcbill, the market is giving me nausea.
Jeff, you are correct. Most of those shares are held by mutual funds. But doesn’t mean those custodian stocks won’t get trashed before that fact becomes more well known.
Fly is on point and managing his risk in outstanding fashion. Great stuff for last few weeks.
Wow. Russia met it’s maker today.
Does anyone know where I can find order imbalance info for NYSE stocks. Bloomberg reported that some Dow 30 stocks did not open after a few minutes. Sounds like old times. Thanks.
Costanza lotto ticket … bought 1000 AIG $2 …. whoopee !
AIG is national treasure – So are my wife’s underpants.
Done with my usual SMH trade. It took about 25 minutes today to get 1%.