A ridiculous day for me. I covered numerous shorts today, with the intent to put them back on, early next week. Thank heavens I was long FAS, BGU and other longs, else the blood would have been extra bloody.
Much to my chagrin, I will lament all weekend about missed opportunities. Bear market rallies are incredibly fierce and make you regret the day you were born, when short into them. However, they never last and the reversal is usually equally fierce.
Bottom line: I got caught short, like an idiot, and now find myself eating a big slice of humble pie.
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Kind of odd there were no hedge fund redemptions at the end of the day…
Told you to buy weakness yesterday. The market is up 8 of the last 10 trading sessions. Thats a change in trend. Bad news who cares. The market is still going up. If we can close above 8700 on the Dow, that will be a break of the downtrend line and a fierce rally will commence.
This is the craziest market ever. I really expected a loss today. I got my teeth kicked in. A loss for me today, unrealized that is. Market fuckery at it best. I am 20% cash and 80% short. Shorted XOM big at 77.30. Still Short COF, GS ( that bitch is kicking my ass) and added to my SPY shorts at close
You’ve been right about it 90% of the time! Don’t feel too humble about this, I’m sure you’ll swing back into nailing it next week!
Today though, I’ll bask on my Fly taunting high horse, as it pulls a chariot of longs (including the back from the dead zombie CHK)!
Have a great weekend!
Don’t feel too bad Fly, I lost 60% of my trading account today.
Much like the 2nd doo-doo bird in a pack, my faz holding allowed me to follow you over the cliff, while fxp imitiated the rest of the flock; crushing me as it continued its never ending drop; piece of garbarge
Paging Vicenzo, seems we have a gravy spill in the server room.
still 100% short, this is pure fuckery
Fly I am feeling your pain. I know that DevilDog is feeling it too
Once again, ya gotta love the Crameister for advising everyone to dump insurers earlier this week. Hope y’all got a piece of the rock.
Yawwwn…
The new way to play this market is take your positions early, then take a long nap, wake up and sleepily watch it rally the last hour and a half.
They rallied the thing into the close, as anticipated this morning.
Boo-Frikken-YAH!
-DT
Sold my longs at the end of the day and bought some ERY and BGZ to balance out the clown raping I received in SRS and FXP…
I think you mean “dodo” bird, tho “doo-doo” bird is as apt.
BTW, could you move a little bit? I was over the cliff just ahead of you and that’s my pancreas you’ve got your beak in.
fly
you assume its another bear market rally?
what if it’s start of Obama bulltard mkt?
Bottom line: I got caught short, like an idiot, and now find myself eating a big slice of humble pie.
Bottom line– your’re a good man Charlie Brown, and honest assessments like the above are what keep bringing people make to watch the Magic Show every week.
Now get long.
_______
I happily bought some SRS very near the low of the day.
Then I less happily repeated the process several times as the day continued and the low of the day moved down.
Still, I like the price here and prefer SRS over SKF. My view is that the banks are first in line for protection, and CRE is helped only as a side effect of aid to the banks.
I had nothing hedging my long positions, so I needed something in an inverse ETF.
“”Mr Doji Says:
Don’t feel too bad Fly, I lost 60% of my trading account today””
thats too much for one day..what are you trading?
At some point Mr Vix will come into the room and take a big dump right in the punch bowl. Closed below 60 today with a pretty big spike down.
With all of this fuckery I am flat for the week. A lot of work and stress to end flat. Up 8 out of the last 10 sessions. Setting up for another big reversal. Tax loss selling will hit for all of the dumb fuckers that rode this bitch down
Sold my longs at the end of the day and bought some ERY and BGZ to balance out the clown raping I received in SRS and FXP…
You bought more triple shorts to balance out the raping you got in the double shorts?
Talk about “out of the Rikers holding pen, and into the Sing Sing Shower Room.”
Say hi to “Bubbah” for me.
________
Where is Generational bottom and DevilDog? I enjoy their bickering.
Fly, you’re still God, but as Jake says, seriously think of getting long. It isn’t certain, but this looks like a powerful rally emerging. The world is still coming to an end, but it’s Christmas Vacation. The world cannot end on Christmas. The Chinese are probably buying stocks to ensure Christmas does not end, which is why they held a gun to Paulson’s head.
End of world tour is 2009.
market should have blown out to the downside today….minus 600 plus on Monday with NBER news… the dow should have dropped a 1000 like Devil Dog had predicted… BUT it didn’t.
Long isn’t wrong when the market refuses to go lower… wait and you will be shorting from higher levels in due course….
the TLT should have moved higher on the jobs number but it didn’t..smart money was selling the bond bubble and buying the broads..
Bring your wieners over here and put them on my grill. We are having Hebrew Nationals with a little kraut on them.
Hey, Fly,
Don’t burn your weenies.
And don’t forget to put the hot dog in the bun later tonight!
When stocks start goin’ up on bad news , Rimm, Xom on oil, The market on jobs… El Rally-o to punch mustaches off is a comin…….
I think I like this site so much ’cause The Fly admits he’s sometimes off key.
99.999999999% of others never do and I like the honesty here!
Don’t feel too bad Fly, I lost 60% of my trading account today
Good grief.
Jake,
Just caught your post from last thread. In general, every chart I draw ends up looking like a goat fucking a cheese sandwich, which I understand is a very recognizable pattern to experienced chart enthusiasts.
Just cannot understand how the high unemployment number and deteriorating domestic spending numbers equal anything but falling equity prices. They can prop up the banks, but eventually these fuckers need earnings. They still don’t seem to have a clear picture on all their bad debt yet.
But I’ll take a look at the chart as you advise. At some point I’m going to have to re-think my “thesis” if I can flatter a so-far dumb ass idea with a grad school term.
Also responded to your post a few threads ago. Send that script on down.
Russo’s probably not the guy you want playing you, tho he’s a spasmodically funny guy.
Is this site slow and hinky for anybody else today?
And yes, I said “hinky.”
Deal with it.
Bubbah says he doesn’t like teeth, and he adds that this might be the weekend that Israel launches a few tomahawks at Iran.
I’m cleaning up a bit now after hours, but a gap down (and no middle east fuckery or sudden ice ages) will help into Monday.
I think “events” between now and Jan. 20 or whatever it is will make Obama an afterthought until he’s actually sleeping in the White House. And the seasonal charts say Dec. 5 is the end of the uptrend…I just used a different calendar – one where Dec. 5 fell last Monday…
all those iETFs look like triple top breakdowns…SDS, QID, SMN…
I’m wondering if our parents were related way back when, Anton, hinky is a word I would use too.
The feds finally hit the economic mort-G-age spot.
here devil dog…here boy.. here boy…oh where oh were has my devil dog gone..oh were oh were can he be??
im really sporting wood today…sold FAZ and the open and bought back at the close…with a bunch of TNA action in the middle..yeee haaaa!! thank you Fly..
FLY
Just for you, I will fart on my finger right now and smell it.
Here it goes…..
ahhhhhh
It smells like swedish meatballs and gravey.
Boca,
Let’s hope they weren’t. That would ruin everything.
Hinky indeed.
Mike,
Please, PLEASE tell me you’re sharing as much with Cramer & the Motley Fools.
Their entire sites are based on such posts.
Everyone get 100 percent long in the afterhours
The depression is ovah.
BUY BUY BUY.
Thats what they were saying all last week, then everyone got a kick in the nuts on Monday. Unless of course you are a female, then you got kicked to the hairy taco.
Has Rev. Shark every made a trade? Its never the right time to buy. The guy drives me fucking nuts
Anton,
Fuck Off
Holy cow. I’ve been out all day. Havent looked at a chart or a thing until now. Dang. I missed a BGU/QLD scalp! This is insanity. Monthly moves in an hour. This is one sick market.
Ass,
Wallow in yourself.
That’s funny, they all look like they’re building reverse H & S’s to me.
Such is the market.
Silly shorts…..
I have always preferred hair pie to humble pie. Odd, no?
I also like hairy tacos.
So as Dave Grohl predicted in 2002, people would be throwing autos and houses off bridges in 2008, yet he gives no further clues what will happen next, except that in times like these, you learn to live again.
http://www.youtube.com/watch?v=WG294M_kYWM&feature=channel
I know the market is rigged by the government, however, they are going to push this fake shit too far one day. Anyway, you now know why I don’t day trade. Too much manipulation on the daily charts and too much range intraday without breaking the long term trend for the government to fuck with to fill the central bank’s coffers with day trader money. Still SHORT from 9/19 and holding until my intermediate target of S&P 580 – 650. Nothing the wizard can do about that without being exposed. Besides, the central banks will be position SHORT to take another chunk of “all is well” 401K money by then. Have a great weekend!
Off for some VIPER and bouncing 34D fun. Ribeyes for me tonight.
Thanks DEVILDOG, I guess you will be going on vacation for a while now? See you when you get back (ie. the next down day).
I always thought he was real, but something about the construction of DD’s last sentence makes me think he is actually Alan Greenspan.
Dog –
Line up the bastards, all I want is the truth:
http://www.youtube.com/watch?v=Dwyit8Xz5Dc
Dawg — please see my “Draw a chart” post to Anton.
Your 9/19 downtrendline on the SPX (and SPY) are as violated as your portfolio was today.
Might I suggest you attempt “writing it down?”
Seriously, enjoy Montana. It’s lovely, even in non-apacolyptic times.
_________
Gun Powder Pie?
I use that line all the time now. Thanks Fly
A week in the Bob Marshall wilderness will certainly clear one’s head, and nothing need be written down.
Just Omagin where we’d be now if the other guy was elected … remember this:
http://www.youtube.com/watch?v=vOJKzDSsG0Q
He would be raising mcCAIN and the markets would really be razzled …
Jake …. didn’t DD say he sold his TX abode? Not to move to Montana yet but to pay his Dad back most likely …
Anyone tried the SNUGGIE? I’m thinking of ordering one
E8 — I think he said he had the bunker ready and everything.
Let’s hope his mind turns back to peace, and away from anger.
___________
trade what you see not what you read or hear…..
HD and FDX are both smartly over the 50 dma’s…. noticed that the FXI has also closed north of the fifty.
8 of the last ten days have been up days…. huge positive divergence setting up on the MACD in the charts…
the spy is above the 10 20 ema’s and just below the 30 ema… notice that the angle of descent of the 30 and 50 dma’s is beginning to flatten out…
these are some things IC
That guy on CNBC with the fake smile and all of the teeth who was saying this market is like 1987 is NUTZ. Back in ’87 the market went down for about six weeks and culminated in the 10/19/87 crash. The economy was growing and we were never close to a recession. If anything, this market is alot closer to 1973-74 when we were in a deep recession and the indexes were smashed for at least a year and a half.
Sometimes you eat steak, sometimes you eat hotdogs. May I suggest an extra dirty stoli martini, maybe smirnoff depending on how bad your trades were, and don’t beat yourself up to bad. lol
Fly, my man !
Certainly nothing wrong with Hot Dogs and Humble Pie…
…IF…you wash’em down with…
Rich Man’s Whiskey !!!
——————
Enjoy the weekend !
.
The market surged b/c OJ got 33 years…
DevilDog, this is for you; from an uber bearish trader: Tim the Enemy, Knight.
http://slopeofhope.com/2008/12/05/bad_newsup_market.htm
Bad News—>Up Market?
My decisions to:
* Cover my ES shorts at ~822
* Sell my Russell puts
* Go long DIG and GDX
all seem to be, so far, well-founded. Of course, my “well-founded” trades sometime seem idiotic the next day, but that’s what stops are for, right, mates?
But the cold fact is this………and those heavily “committed”, take heed………just about the worse imaginable economic news was issue this morning, and the market has flipped from down hard to up big.
Anyone who has studied the markets at all knows this is a powerful indicator of higher prices to come.
A bear could not have wished for “better” news this morning, but it looks like the markets are going to end in the green today (I am typing this 70 minutes before the close). Take heed and respect the facts before you.
“The Fly” is to be complimented on his honest appraisal of today, but Fly Jr is clearly out of line in his smart ass remarks to his superior.
More for the one known as “The DeviledDog”; this time from another well-known, but now a “former” UBER-bear. The Fleckmeister.
++++++++++++++++
It would seem that liquidation pressures (as they wax and wane) across a broad front are liable to be all that matters between now and year-end. My feeling is that at some point, folks will conclude that the worst has been discounted for now. They’ll get excited about all the stimulus and a substantial rally will ensue. Perhaps that process started today. I don’t know. It’s too early to say.
All Good Things Must Come to an End Sometime
After considerable thought and deliberation I have decided to make a major change in my life: I am going to close my hedge fund. I have several reasons for no longer wishing to run a short-only fund as I have for the past 12 years. First, my original reason for starting the fund was because of developments I saw occurring in the late 1990s that I wanted no part of. I felt that Greenspan was fomenting an environment that would lead to disaster, as consultants, financial advisors, and the public at large were losing all respect for risk. Of course, the reckless behavior carried far higher and lasted much, much longer than I ever imagined it could. However, the recent carnage in the stock market, real estate market and the financial system (as well as the job losses) has washed away those excesses to a large degree and it has violently demonstrated the risks associated with investing.
A future goal of mine, when I set up the fund in 1996 — as I attempted to step aside from the madness — was to return to the long side of the business at some point in time when I felt that investors had become more rational regarding risk and stocks offered a more favorable risk/reward proposition. I considered this option very briefly in 2002 after the stock bubble imploded, but the cleansing process was postponed due to the burgeoning real-estate bubble.
Second, though I think that the stock market still has unfinished business on the downside, I believe that 2009 is the year to prepare for a return to managing money in a more balanced fashion, with longs (and some shorts), as there are currently plenty of interesting ideas that appear to offer a margin of safety. On the flipside, compelling opportunities on the short side are not as abundant as they were just a few months ago (though there still are plenty.) The “value restoration project,” to quote Jim Grant, has been brought about by the consequences of disastrous Fed policies and the madness of the crowd, both of which have concerned me for the last 15 or so years.
Lastly, on a personal note, I no longer want to run a short-only hedge fund, as it is very stressful, nerve-wracking and generally not very much fun, entailing an intense focus on the short term to effect risk control. In addition, one views the world differently when operating solely from the short side and I would like to widen my focus as I did when I managed money from 1982-1995. My wife is especially happy about this potential change.
My efforts in 2009 will be directed towards setting up an investment vehicle managed by Fred Hickey and me that won?t be a hedge fund, which hopefully will be available to everyone. I feel that many (but certainly not everyone) in the “hedge” fund community have behaved in a disgraceful manner in the last couple years by taking huge fees along the way and then either running at the first sign of trouble (by giving money back to avoid having to recoup draw-downs from high watermarks), or locking people up and not giving them their money back at all. Consequently I’d rather not be part of that “industry” going forward.
The government has almost fallen over itself to pledge $8.5 trillion or so in loans, bailouts and guarantees. Most of which is heading straight to the financial sector.
According James Bianco of Bianco Research, this amount dwarfs other massive government spending programs in the last century, even adjusted for inflation.
• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion
TOTAL: $3.92 trillion
And we want to spend well over TWICE that amount. All while our nation is hemmoraging money and jobs and global growth is slowing, and we are coming to the realization that we can’t grow forever.
I think the economy has grown into such a bad situation ever since the federal reserve was created, which lead to us coming off the gold standard that any administration is trapped. If we suffer from deflation, we will probably have to endure a depression. But this is something that we seem to refuse to accept.
We can try to hyperinflate away the debt, but eventually we have to pay it back and start producing goods and services and saving, and eventually set this nation up for a greater fall, and perhaps the greatest depression since the late 1700 american revolution, and potential collapse of the american empire. Either way, eventually we have to pay it back and start producing goods and services and saving. In the 30s we at least could manufacture our way out of it.
Gios video a few weeks ago said If you have food in a refrigerator, clothes in a closet and you sleep on a bed, you are richer than 75% of the population. 18% of the world lives on $1 per day. 53% of the world lives on $2.00 or less. And rather than find out how we can produce MORE, the government subsidizes farmers, and then limits and restricts how much food each farmer can grow.
Meanwhile, the truth is all the 3rd world countries produce tons of goods on virtually slave labor, then people give them miniscule amounts oof money, then they sell and resell to facturies and resellers, who in turn export it to countries like ours, who can only afford it because the factories are in business because they borrowed tons of money, while the goverment prints out tons of money for bankers that mismanage money into the ground, and that way people can pay way more for houses than anyone else in the world would pay for shelter, then in turn get out a home equity line of credit to buy 3 pairs of shoes for $50 each( or woman shoes, $200) that were produced for $1. That is a bubble.
And of course, the government prints money so that money is worth so much less than it was, and everyone that borrowed money can get higher pay and make higher revenue, and the rest of the world can continue to get screwed. But it can’t go on forever. Eventually people’s capacity to borrow reach their max, and the companies are flooded with such great compititon in bubble areas like oil and home builders right at the top, that the eat each other alive, and take the employers and consumers along with them.
And there is not enough credit and money in the system to pay back the debt. For every 100 dollars the federal reserve prints out they expect $103 or so in a year. And the banks take that $100, and expect maybe $106, and the real estate developers expect maybe $115 or more. But eventually the system cannot function, as there are not enough dollars in circulation to collectively pay back all of the debt. The federal reserve doesn’t mind as they can just print more paper, and call it money, and the government continues to go for it, because they know that they are screwing over everyone else.
If not for the dot com boom, the economy probably would have already collapsed, but that sudden craze mania postponed everything, as everyone suddenly rushed out and bought dot com stocks, and borrowed money to start dot com businesses, and suddenly companies rose up and made hundreds of millions, if not billions, and paid employees and CEOs, and they went out and borrowed more and more money to buy houses, and then the housing boom was born, as everyone rushed to get houses, and borrowed money on subprime to buy 2nd, 3rd, and 4th houses on no interest and option arm loans. As the dot com boom went bust, the housing boom continued, but it couldn’t last either, and as people stopped borrowing more, Greenspan’s easy credit couldn’t last and became tough.
Now as homes default, so too will banks, and then the government can continue to try to bail them out, but sometime in the near future, all of this system of credit will have to collapse.
If the population shrinks as the baby boomers retire stop producing, move to homes, and die, home values collapse and debt comes down, and there is way way too much debt for everyone as individuals to be able to produce their way out of, so the banks and government hyperinflate their way out of it, but the lack of poduction catches up.
If population continues to grow to have the younder generations pay for the debt, there’s food shortages and inflation skyrockets until people can’t pay for houses, and when that happens, the banks get screwed, and the businesses can’t borrow money to make payroll, and stocks and businesses collapse anyways, but perhaps the american empire does as well. If the countries all come out in some global war and destroy both houses, and hundreds of millions of lives, then businesses are demolished, and destroyed, but there’s enough food for everyone if we begin producing again, there’s much less demand, so several companies get wiped out, but at least then we’re in a position to rebuild our way out of it.
Politicians will eventually be forced to make extremely drastic decisions. this time is inevitable ever since we had everyone’s income forced down as people were forced to pay social security, and the government borrowed money for the vietnam war and as a reaction to that Nixon made the decision to go off the gold standard to avoid a depression.
I love my country, and my lifestyle,and it hurts me to say this but maybe we need to fail economically, and deserve to, as does every major superpowers with federal reserves that instills a central bank and debases a curency. And the central bankers all deserve maximum punishment as well.
Thomas Jefferson said this about central banks:
“The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered. ”
He understood why limited government was needed. We have become so much less limited government and free enterprise dispite whatever people want to try to call it. If call a spade a spade the world government is essentially a communist facist socialistic empire run by the central banks.
Soon it will be a global collapse and a central world government will dominate out of the chaos that breaks out.
“Lastly, on a personal note, I no longer want to run a short-only hedge fund, as it is very stressful, nerve-wracking and generally not very much fun, entailing an intense focus on the short term to effect risk control. In addition, one views the world differently when operating solely from the short side and I would like to widen my focus as I did when I managed money from 1982-1995. My wife is especially happy about this potential change.”
I can agree somewhat. It takes a strong minded person to be on the short only side.
For me it seems a little bit easier for I am a natural skeptic and empiricist.
So you say your balance sheet is fine, oh yeah well then prove it to me
Posts like this are what separate iBC from the 2nd & 3rd tiers
Short only hedge fund? That flies in the face of the name,hedge, no? I post here under several names and I suspect that Henry Blodget is going to make “The Fly” an offer to purchase this blog and fold it into the NY Times website that he is also trying to buy. “The Fly” will have to sign a no compete clause.
The market will gap-up Monday, and proceed to tear it up through the day…closing up more than it did today.
Detroit auto maker deal is in the air.
Get on board! We’re going to Dow 9000 this time.
After that, it’s anyone’s guess where we go, but I would say we re-test the lows!
Dow 10k by New Year 7k late Jan – Feb
This is what cannot be ignored, per Senor Tropicana:
“But, there will be an “exogenous” event, sometime soon, that will shake you to your core. You will just sit there, dumbfounded, thinking “why didn’t I listen to Senor Tropicana”?”
I truly can’t believe this move. I went to bed, NY time at around 1 pm, with the Dow down 190 and wake up and see the Dow up 260.
This is truly fucked.
Fly, why don’t you simply just take the rest of the freaking year off or play small. No one can play these freaking markets unless its very short term or really long. In between you simply get spliced.
But good try nevertheless.
What the fuck happened?
“But, there will be an “exogenous” event, sometime soon, that will shake you to your core. You will just sit there, dumbfounded, thinking “why didn’t I listen to Senor Tropicana”?”
Correct, Bravo.
The Fly is God.
Jon Najarian said on Fast Money his trades now last between 1 and 8 minutes. It used to be measured in hours.
I don’t know why any of you guys are playing the indexes. It’s just too hard.
Buy fucking banks. There are plenty of regionals that don’t have a bad loan book. It’s the only business where the margins are expanding and the government protects them.
Buy freaking banks.
they can now buy debt securities which are selling at huge discount match the maturity and run the spread return with the help of a government guarantee.
Stop trying to day trade this ship and buy banks and hold them.
What regional banks do you have in mind?
WTF. I told you guys that there would be a fuckin rally this month and that there are rarely four consecutive down months in history. 85% of the time the fourth month is up. Then the shit hits the fan a little before the longer term recovery. Also, the shortsqueeze bullshit is deadly. Be careful with that stuff.
Me, I’m sidelined a little during the december rally and that’s OK. Since I’m working my regular job 12 hrs per day, If I ain’t losin, I’m winning.
Sorry that was me.
Tapped out
look I’m long a lot of citigroup having sold out my pos two days ago and bought again. Their losses are freaking ring fenced now to the tune that they can ” only” lose 30 billion and 300 billion is protected by the government. It’s the buy of a life time, I think.
I’m not in the US so the ” regionals ” I bought are a in Australia and a couple in Europe.
But I keep hearing there a several regional banks in the US that don’t have a big loan problem.
The spreads that these guys are getting are now huge…. absolutely huge and as I keep saying they can now borrow with a sovereign rating.
BBT is one that springs to mind.
The president, John Allison,For John Allison, calls it like he sees it, which I like.
“For John Allison, the high-risk rollers on Wall Street are getting too much of the ear of Congress and having too much say in resolving the financial nightmare that they created.
That’s why Allison, the chairman and chief executive of BB&T Corp., submitted a 14-point letter Tuesday to all 535 members of Congress with a simple message regarding the proposed $700 billion bailout.
“There is no panic on Main Street and in sound financial institutions,” he wrote. “The problems are in high-risk financial institutions and on Wall Street.”
He said that it is important that “Congress hear from the well-run financial institutions, as most of the concerns have been focused on the problem companies. It is extremely important that the bailout not damage well-run companies.” Allison’s opinion is seconded by local community-bank officials and community-bank trade groups.
“Community bankers did not create this financial crisis, but our banks and communities are clearly feeling the impact,” the Independent Community Bankers of America said in a statement. “As the fundamental drivers of local economies — we could be in a strong position to help resolve this crisis.”
BB&T, the nation’s 14th-largest financial institution with $136 billion in assets, hasn’t strayed far from its beginnings as an Eastern North Carolina community bank. BB&T and Allison also hold fast to a value system that extols such virtues as trust, respect, integrity, pride, reason and justice.
And compared with some of its rivals, such as Wachovia Corp., which was aggressive with alternative-mortgage products, BB&T kept its bottom line fairly immune from the recent roller-coaster ride of many major banks. BB&T posted net income of $428 million in the second quarter despite having to take a $330 million provision for credit losses in the quarter.
Among the points that Allison made in his letter were:
? Freddie Mac and Fannie Mae are the primary cause of the mortgage crisis.
? The market-correction process eliminates irrational competitors, such as Countrywide Financial Corp., a subprime-mortgage lender that’s been bought by Bank of America Corp.
? A significant and immediate tax credit for buying homes “would be a far less expensive, and more effective, cure for the mortgage market and financial system than the proposed rescue plan” that Allison said would primarily benefit Goldman Sachs and Morgan Stanley.
? “This is a housing-value crisis. It does not make economic sense to purchase credit-card and automobile loans as part of the bailout.”
? Protecting the banking system is an established government function. “It is completely unclear why the government needs to, or should, bail out insurance companies, investment banks, hedge funds and foreign companies,” he wrote.
oh, and I did have hot dogs when I came home, honestly. Then I came here to read the blog.
You fuckers pale in comparison to my $100,000+ designer hot dogs.
My wife is getting used to it too.
PS:
Fuck you Jeff Macke !
Oh, and by the way, my neighbor bought a $3,000,000 racehorse a few years back and that fucker is ready for the glue factory! 🙂
Fuck you Joe Battipaglia!
China Buys Naming Rights to U.S.
Nation to be Renamed ‘Panda Garden’
Fly:
FXP god damn whore is fucking retarded. Even if FXI goes down to $19.83 which is the 52 week low, FXP goes up to 93 .. Do you still believe this fucker is going to $100 before christmas ..
FXI % % FXP
43.65
27.83 3.73% 7.45% 46.90
26.83 3.87% 7.74% 50.54
25.83 4.03% 8.05% 54.61
24.83 4.20% 8.39% 59.19
23.83 4.38% 8.76% 64.37
22.83 4.58% 9.16% 70.27
21.83 4.80% 9.60% 77.02
20.83 5.04% 10.09% 84.79
19.83 5.31% 10.62% 93.79
18.83
i took a long position again this afternoon. a small one basically as a play on auto maker developments and a gap up at the open on monday. the short trade looks too easy right now.
The nature of our world leadership is not our financial system, nor is it debt. It’s because everyone knows they can succeed and reach their goals if they want and they are free to do so. That sets us apart from just about every other country in the world. Those countries with close ties with the US experience the same effect. It’s far from over biaaaatch. Our new president is a case in point. An eager beaver clawing his way to the top with odds stack against him. That’s what this shit is all about. When the lows are retested sometime next year (1st qtr), I’m going toally fucking long.
Rodney – Lighten up! My neighbor had a $2m Arabian ready to race in the Middle East. The horse escaped from the barn, ran down the highway and into a car. Both the horse and the driver were lost. Glue factory indeed! You should be so lucky.
I like your attitude jd. I hope you are right but something inside me says this time it actually is different.
I don’t see how we get out of this without hyper-inflation and eventual dollar default.
That was me above.
Jake/AB – Thoughts on a retest of the lows early next year? I’m looking at 1,100 – 1,200 upside target (under the 200 SMA) for this move. Someone mentioned tax loss selling earlier. That must be over already — right?
Will monsieur be having the grey poupon?
I’m trying really hard to keep my stops in place. I am of course a bear so my stops have been tested this week. I took a couple off the SPY because I don’t see in volume in this rally. Big volume came late on Monday’s sell off. Today was piker volume. I’m looking for another sell off of 600 to 700 points on the dow before options expiration along with major down moves for the S&P 75 to 100. I got hurt badly today because I went against my position size discipline and paid for it. Dumb mistake I thought for sure we would sell off with that terrible jobs number. However I was flat for the week.
Right now I am 20% in cash and 80% short. Short SPY, XOM, GS, COF, MCO, for a while now. Shorted AAPL at close and added to my SPY short position.
Putting my balls on the line.
said this morning
buy DIG USO
AND I bought lots of TNA because my target is 9200 not 8600
don’t take the wrong train!
Moe
I don’t know how anyone can trade this market save for a few hours or very long term. those that do are very brave indeed.
there is big money to be made on both sides of the market by simply trading very short term and not taking any big medium type views.
Long term is different as the market is likely to be higher in 5 years time than it is now
Here’s my long term, bet.
buy here. set the stop at 550 on the s&p and look for 1600 in 5 to 7 years time.
Told you-
Oil is going to 30. Next week
The number and type of stocks that moved up in the afternoon has to be disturbing to the strong BEARS.
j-
How long is the flight from the west coast to Australia
Anonymous-
It was a broad based rally, but it was absent of big volume. The big boys remain on the sideline or as I believe some of them are setting up to sell this rally into year end.
I was impressed with the move after the jobs number being so bad but not enough to change my thesis. Like DevilDog says pick your battles. We are in it to win the war. Today was a lost battle for me, but hey, it was merely a flesh wound.
yer balls are going to get another workout next week
i’d love to see oil go to 30.
That picture is fucking hilarious
eom
+1
13-14 hours depending on the winds, moe.
If you’re thinking of coming over here, let me know if you want. I live in melb.
This secretary Paulson here.
Did you like the Martian rally?
Never forget your government is in control.
Did anyone else have Swedish meatballs and “gravey” for dinner?
Seriously, I mentioned tax loss this morning and see someone else brought it up tonight. A money manager I know of in LA is just starting to sell for his clients, which is why I was asking. Given the lower volume this week (EXCEPT for the Monday sell-off), it stands to wonder whether there will be an impact, and whether there will be additional hedgie redemption-related pressure.
But is the auto “bailout” priced in? It’s hysterical that they make these douchebags do the perp walk for $25 billion, while anonymous AIG execs are, without question, given almost 7 times that much in capital PLUS retention bonuses in a market where there is almost NO demand for their “skills”.
The poster above who thinks S&P 1600 in 5-7 years – and I hope he’s right – might want to look at Japan. The financials won’t make jack compared to the last five years – just where are the earnings going to come from?
And bulltards, keep that chart from 1929 to 1932 handy: none of the rallies ever hit the 200 day MA…
auto bailout auto bailout auto bailout hehehe
Bulltard rally. I’ll shatter it like Granma’s pelvis.
Yes Karl
I did look at japan. Japan went from these current levels to about to around 18,000 over this decade.
Mitsubishi bank went from 3.5 to 16.5 this decade which is a 470% move.
So your japan reference is flat out wrong.
just where are the earnings going to come from?
It’s return on equity and there is/will be enough business to see their stock price rocket 4 times where they are now. Japan’s did.
Leave my Grandma’s pelvis outta this!
http://tinyurl.com/fundamentals1
Wall street – dead
Regional banking – dead
High yield debt – deader than dead
Housing – dead dead dead
Insurance – dead
Commercial paper – dead
Baltic dry shipping index – dead
TED spread – dead
Auto industry (not just US) – dead
Retail – dead
Service industry – dead
US consumer – finally dead
Living beyond one’s means – dead
Auction rate securities – dead
Luxury segment – dead
Municipal finance (via property tax revenues) – dead
I could go on forever.
Would you want to be long in the face of this? Then gfy.
JaneyRuth
Sick stuff.
Submissive females trained to fuck?
WTF?