Here we go again. Charlie “meatball” Gasparino is at it again, spreading incredibly egregious rumors of a possible government bailout of American International Group, Inc. [[AIG]] .
More often than not, Charlie is not only wrong: he’s exactly wrong.
Of course it sucks to have the market steam roll you, based upon a rumor. However, the market was down 500 points yesterday, for fucks sake. You didn’t think it would go down forever, did you?
My approach is simple:
Do not cover any shorts, while this great unwinding takes place. Instead, use capital to hedge or scalp trades.
With that being said, into a meaningful bounce (300 points or more), I will look to short more AXA (ADR) [[AXA]] , Legg Mason, Inc. [[LM]] , Goldman Sachs Group, Inc. [[GS]] , Fifth Third Bancorp [[FITB]] , Marshall & Ilsley Corporation [[Mi]] , Vulcan Materials Company [[VMC]] and PacWest Bancorp [[PACW]] .
There is always the chance that the market can go on an extended run, with assholes thinking the worst is behind us. However, just remember, in the real world the economy is fucked up. It’s not isolated in the banks anymore. The lack of liquidity is incredibly deflationary, which by the way is far worse than inflation.
Revisit some of your Great Depression text books for reference.
Should Gasparino’s bullshit rumors come true, get long energy stocks, via [[DIG]] , for the dollar will get boot stomped from here to Japan.
NOTE: The decline in Morgan Stanley [[MS]] is starting to become “alarming.”
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Could one of you New Yorkers translate what Charlie G. just said?
The entire american financial system is predicated on “a person familiar with the situation”
ALL CLEAR BOYS~!~
Charlie Fagarino should be in jail. He is the biggest scum bag on tv.
I wish him nothing but more failure and misery in his pesonal life.
Now that all of the CNBC people are in their talking “boxes” maybe they should play Hollywood Squares.
CNBC is part of the great rumor mill machine. All ‘breaking news alerts’ from CNBC and especially Charlie Gasparino should immediately put under a lens and examined for indications of who wanted that piece of news to come out now and for what reason.
CNBC doesn’t work for us. We work for us.
+1 karma for TraderCaddy.
TC, yes it’s Hollywood Squares!
I love the expression: “AIG isn’t going anywhere.” “They will be around.”
Oh well, that was fun. Maybe LEH needed a little help from Charlie in their unwinding efforts.
Well done CNBC!
notice how MKL, BRK.A, FFH etc … are rubbing their greedy little hands at the thought of AIG failing.
Seems like iBC is not the only organization that likes the carnage in the market.
Of course Maria had Ace Greenberg on this morning for an exclusive interview, in which he implied it was the Fed’s civic duty to lend billions to AIG, an insurance company.
I’m sure everybody remembers her exclusive interview last year with The Tanned One about CFC, in which he claimed CFC was strong and sound, meanwhile he’s selling his stock with both hands.
Note Greenberg said most of his net worth is in AIG stock, it was a badly disguised ploy to save “his” company and his own wealth.
Oh, how I love that picture. Good times, good times.
TSCM hit a new 52-week low today. Odd no?
Meatball gets on the phone to pretend he has something going on. I fucking hate that guy. He makes me nuts. I might wait for him outside his office and take a flashlight and beat him til he admits he a phony.
Just kidding
Fly will take Meredith Whitney to block…
I think we should sell the west coast to Canada and have them bail us out of our national debt…
Then get rid of the central bank, like our forefathers intended and not allow them to control the economy.
Why pay interest on paper, when we can make the same paper ourselves?
Tea Pot Dome Scandal…Ha Ha Ha
No way AIG goes under. Regardless of the ethics or morality of a bridge loan, bail out, blah blah whatever they decide to do, AIG will not go under during an election year.
hahaha Zach hit him with a giant mortadella sausage, he’s full of baloney anyway.
Contractor, you’re assuming that Bush, Paulson, Bernanke and Congress are in control enough to solve everything… how’s that working out so far? I can’t help being cynical.
CrAIGslist
What do you mean, Boca? All they have to do is print money and offer the bridge loan. Hardly beyond what their capabilities. Remember FNM and FRE?
Fly:
Which of the refiners are holding up the best ? VLO, TSO, WNR, FTO ? ALJ maybe !!!
I don’t win often, but when I do, I might as well remind everyone !!!
Nice temporary win on ALJ.
AIG is no FNM/FRE.
The ramification of a Fannie failure meant the end of Treasury purchases.
AIG will just fuck us a little.
The only sector I would consider adding shorts to at this point, without a serious rebound, would be Cramer’s “early cycle” type of stocks. I have my trades on, and a couple of ideas, but I am much too greedy to share.
Contractor, I had a *grin* in my post that didn’t show up, I was just being sarcastic and couldn’t edit my post.
Anyway, yes it’s in the Fed’s capabilities, but I have personally never liked the idea of Bernanke and Spanky Hank Paulson (non-elected officials) acting on their own to expand the traditional scope of Fed activities. It enabled Paulson’s previous plan of socializing losses while previous gains did not accrue to the people paying for the losses.
Ozark Hillbilly, that’s not very nice at all. If you wanna hang around you gotta share something.
anything out on MS, I just saw it “fly” to 27?
Fly, what is your take on the regional bank rally that over the last few months….that has continued the last two days when everything else is falling apart. The STI, PNC, PAWC should be down given the dow down 500-600 points shouldnt they.
Really enjoy your humor combined with excellent and independant views
PS-Glad the profanity is back both for the humor and my portfolio
I doubt few people here are comfortable with the rapid expansion of the Treasury and Fed’s balance sheet over the past few months, boca.
All that aside, the election hangs on it and no way they allow the race to be decided by an AIG failure.
I love the expression: “AIG isn’t going anywhere.” “They will be around.”
I think you are misunderstanding the speaker, here, Fly.
It’s very clear he’s talking about the capital letters “A,” “I” and “G.”
Heavens knows I will be using all of them this weekend at the Stadium (short Allianz, btw?) when I fashion a string of Oak Tag posters spelling out “GO GIANTS!” for this upcoming home contest against the Bungles.
__
Full disclosure: I’m neither long or short AIG.
No way AIG goes down. If AIG goes down, then the USA goes down, and that’s never going to happen.
The only one missing in one of the CNBC “squares” is Paul Lynde (RIP).