iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,431 Blog Posts

Dumbass Government

You do not overhaul the entire financial industry in less than one year after the greatest credit crisis since the exorbitant days of the late Roman Empire. I don’t know what else to say, other than “wow.” They are removed from reality and need to be voted out, before they do some damage we can’t walk away from.

You do not declare edicts, in the midst of a tenuous recovery. The stock market has been the primary source of hope for this country. If the government fucks that up, you can bank on a double dip.

Bottom line: I don’t want to overreact to news that can later turn out to be nothing, as is the case with most government announcements. Nonetheless, I have put all buy orders on hold and suggest that you raise cash (at least 10%), in order to lower the beta, just in case we slide another 5% from here.

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77 comments

  1. The Zombie

    The Fly is God.

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  2. Woodshedder

    This is Obamao’s attempt to change the dialogue from Scott Brown back to Obamao.

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    • FIG

      Woodshedder is on point. This is nothing more than a power grab by the pres. This country is ftk’d, and everyone with half a brain knows that. Obummer is simply playing the day to day game of media sound bytes. He’s not going to do anything to the banks. 2010 is going to be known as the year of the big ass merger. Everyone is looking to marry, and the bachelors left will die an early death. I am disappointed in you, Fly. You are too easily swayed by the bull crap spewed by politicians. Let the marriages occur in earnest and let us all benefit from the bullshit monopoly money we will make from those mergers. BTW, SD is looking damn good right here, any dips into the 9.40s I am filling my boat up.

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    • Buckeye Bob

      That was my first thought too. My second thought was these new “regs” will be nothing once the lobbyist get done with them.

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      • JakeGint

        Lobbyists/Schmobbyists. Chuck the Schmuck will strangle this baby in it’s roach infested cradle.

        _________

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  3. No One

    5% slide?
    You are being very modest here.
    Or do you mean 5% today alone?

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  4. GW

    It’s all about managing the inflation trade through fear…..there is a great chance this announcement would be watered down by the time and if it gets into legislation.
    More importantly chart chompers can buy with a stop below 1114 S&P….count me in on CMI, SWN, TSL, & SQM …all nekkid long

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  5. TheArtist

    The Fuckery will be playing a second set at 2:00

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  6. Purdy

    This could easily turn very nasty for the mkt. Obama has been the clueless lap dog of the big banks and now they are turning their pr FUD machine against him …which will be punctuated by huge institutional dumping of stocks.

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  7. Donny

    “You do not overhaul the entire financial industry in less than one year after the greatest credit crisis since the exorbitant days of the late Roman Empire.”

    Come on … a republican won a senate seat in Massachusetts for God sake. Do you really think Obama is gonna sit idle on the banks, while motherfucking CEO’s bonus themselves millions, and watch his party lose 100+ seats in November.

    Come on, you know better than that. Get your head out of your ass Fly.

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  8. Flux Capacitor

    You voted for them, you fix it!

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  9. Mr. Cain Thaler

    I just purchased NM. I’m holding my NOV short, which is still large.

    The risk of messing with financials is too great, which I’d say makes this risk overblown. I’m edging in and will look to cover NOV south from here.

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    • JakeGint

      LOOK AT BBT.

      THIS IS BULLSHIT FOLKS.

      ________

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      • Greekpunk

        Look at FITB….absurd

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      • Danny

        We SHOULD have let the system fail, and we SHOULD have rebuilt it. FUCK in the worst way all the legacy asset holders. They DO need to be voted out, but this has been nothing more than a paper recovery. Surprise surprise, but that doesn’t cut it for me, a taxpayer who plans on living in America for more than 20 years before I knock off. Fucking baby boomer jerks. We may as well revamp the political system and financials while were at it.

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  10. mhass33

    Fly for President.

    Do you think they should regulate debt levels? Wouldn’t that be the actual solution to the problem that led to the recession?

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    • FIG

      The problem that led to the recession was massive debt through massive leverage. The leverage was being propped up by cheap money. Solving the problem requires a massive depression worse than the Great Depression. Anything other than that will not solve this situation. All the games the government and fed are doing are simply kicking the can down the road a little longer. Unfortunately, the road ends at a cliff. My guess is that cliff will be here soon, most likely around 2012, just in time to vote in our Hitler. In the meantime, Obummer is here to be the people’s president, to show the masses how to get along.

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      • JakeGint

        Hitler to follow Mao?

        Are our only chances the different brands of socialism (national and international)?

        Maybe we could try “Constituton 101” this next go around.

        ________

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      • cardiffgiant

        “Government is not the answer to our problem; Government is the problem!!” Wake up everyone, the Government caused all of this through their meddling via:

        1) The Fed – Utilizes “central planning” (a communist term) to influence interest rates and disrupt the order of the free markets.

        2) Fannie/Freddie – Quasi Gov agencies – utilizes the securitization process which in turn allows banks across the country to make bad loans to people they know can never pay them back.

        3) Congressional pressure for affordable housing from guys like Barney Frank to make home ownership a right for all people even those that can not afford it!

        4) The Fed – Monetizing debt (calling debt and asset and then using that “asset” as collateral to simply print paper that we call dollars) which allows the federal government to continue with the reckless deficient spending.

        5) Presidential and congressional attempts to artificially prop up housing prices by violating the sanctity of contract in the form of the mortgagee modification program which has the affect of sustaining artificially high housing prices thus not allowing the glut of supply to clear.

        The answer to all our problems is simple and can be broken down into 4 pillars of principal:

        1) Constitution Government – Need to actually abide by the greatest document of all time
        2) Non- interventionist foreign policy – We currently have military bases on over 140 sovereign nations and it cost us billions! We need to stop the empire building and mind our own business
        3) Sound money- In 1971 Nixon (top 5 worst presidents) removed our last tie to gold thus opening up the flood gates for Government to expand exponentially, deficient spend, and inflate the citizens into submission.
        4) Protection and promotion of civil liberties – Perhaps the most important of all pillars. Any violation of the aforementioned pillars will by definition violate someone’s individual liberties! In addition when you go down the road of using terms like “what’s good for the nation” or any other “collectivist” jargon, instead of focusing on individual liberties, you end up with a dictator in charge!

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        • mhass33

          Excellent points by all. Well, if the shit hits the fan in 2012 then I guess those conspiracy theorists will be halfway right haha

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  11. GW

    Purdy could be right, but if we hold 1114 -1120 S&P for the next day or two we could squeeze out another new high top into mid February. Elliott Wave has a 90 day cycle ending in mid February with potential downside of 8k DOW at the end of that cycle. Elliott has been spot on for some time now.
    GLT

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    • dave121670

      Elliott has not been right for some time now. Elliott makes wishy washy predictions about the future. Example: Mega Wave 2 will end at 1122 for the S&P which represents the 50% retracement of the bear market. Unless something else is going on. Then we’ll look back and draw a bunch of lines that says we were right, even though we were wrong. It’s idiotic.

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      • GW

        Not idiotic, but messy yes. It has its merits and has been a decent guide. Like all theoretical discourse they have their time and place. I do remember Elliott Wave and the Oracle who follows Elliot Wave Theory both saying that the mkt would run to 1150 -1200 back in April…..

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    • Ollie

      Well we didnt hold 1114 S&P. I suggest you take your Elliot Wave theory and roll it up in a bong and smoke it. Anyone who believes in that crap needs to get his head checked. You are so lost that you are using that shit as a premise on how markets work.

      The market doesnt give af flying fuck about Elliot Wave theory. All it gives a shit about its price.

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  12. BARACKISADODOBIRD

    SELL SHORT THE BANKS
    SELL FAS
    BUY FAZ
    SELL

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  13. Skeptical

    LOL: Feels like the good old days.

    Straight up rally was getting pretty boring lately.

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  14. Fly Leech

    Purdy and GW could be wrong. Nothing will come out of the Legislature for at least a month. Talk is cheap at this point. If there is a concerted effort to undermine the administration by the financials, their ploy would be to keep things relatively flat. The administration would like nothing better than to have a major reaction in order to boost their perceived need for more regulation. If it’s a conspiracy you need, blame the unions with large pension funds who are more interested in helping little o.

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  15. Tiger

    I will not Cuss
    I will not Jack OFF
    I will not Hit on that cutey in room 219

    UNTIL DOW HITS 11,000

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    • Ollie

      Good luck with that. Your going to be very disappointed for the next 3 years with that kind of mentality. Making long term price predictions is for fools.

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  16. EricAnders

    Go OBAMA. F*ck Goldman and the other i-banks. Those a-holes are making way too much money. Its the greatest money-making scheme of all time–they aren’t even making loans, they’re just “borrowing” money from the Fed at ZERO interest rates and dumping it into bonds and overseas investments and collecting mass amounts of money. Hell, they should let us borrow interest-free and get into the same scheme (even by simply buying US treasuries)…we’d all be f*cking millionaires.

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    • Mushroomz

      How easily satisfied the average rube is. Obama comes on teevee promising to make things right and all the sudden you think the world is going to change, and bankers will be sent to the poor box.

      Wrong, the game continues just as before.

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      • JakeGint

        Only Eric Anders ends up getting BOHICA’d one more time, with gusto.

        He scratches his head, unable to believe Obama cannot save him.

        _________

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        • cardiffgiant

          You idiot Eric! Don’t you realize the FED is the problem and Obama supports them? If Obama really cared and wanted to help you he would move to END THE FED!

          Peel back the layers of the onion its all there staring you in the face. WAKE UP

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        • EricAnders

          Oh I’m well aware of the fact that nothing will ever get done. I’m no fan of Obama by any means. Nonetheless, it is satisfying to see Goldman and their Wall Street ilk squirm a bit.

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  17. tony

    they are reacting to the anger people feel after missing out on the biggest rally in years while they sit at home jobless and getting foreclosure notices. The mass upset was a big political deal. They are trying to get on the side of the people with this. They should be talking jobs all the time and stop the knee jerk reactions. I have grown to just dislike all administrations

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  18. EricAnders

    Goldman aren’t geniuses. Any idiot can take an INTEREST-FREE loan from the Fed dump it into treasuries and generate exorbitant returns.

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  19. Mark Spiegel

    Maybe not in a straight line, but we will slide a lot more than “another 5% from here”… The range of the July lows is where this market’s headed.

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  20. BernieCornfeld

    To the FAZmobile Robin~!

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  21. GW

    wall st dislikes uncertainty; “So if these folks want a fight, it’s a fight I’m ready to have” -HELLO GRIDLOCK
    http://www.businessinsider.com/let-me-be-clear-how-I'm-going-to-stick-it-to-wall-street-2010-1
    still think we can hold 1114 S&P…..

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  22. DSB

    Bot BGU @ high 52s

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  23. Purdy

    Barney (Bwaney) to be on Bloomberg at 2:30 est

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  24. SteveTheNeighbor

    Neighbor Fly. Does this mean you will finally remove the Hope and Change bumper sticker from your yellow PT Cruiser?
    The Obama sticker seems to be sticking to your David Paterson for Governor sticker.

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    • JakeGint

      LOL.

      Irony noted.

      Remember how it “doesn’t matter for whom you vote?”

      _______

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    • TheOtherNeighbor (the evil one)
      TheOtherNeighbor (the evil one)

      Steve and Fly, I am having a barbecue this weekend. Perhaps you guys could find time to come over and visit. I will be serving chicken livers as the main entree along with remnants of the beetles that I picked off my chrotch. Fly if you ever do that again I will slaughter you.
      Again Fly, I do not appreciate what you did, but since we are neighbors, I am willing to let it slide.
      Steve, how many times do I have to tell you to buy curtains for you windows? Its one thing to look at your wife naked, but I certainly do not appreciate waking up to your fat white ass.
      I know times are tough. I have some old ones in our basement. Come over and I will give them to you.
      God my groin still burns.

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  25. Big Mike

    So much for my call we end higher today…

    So, question…I have tons of buddies in proprietary trading at various banks; they getting canned? They said it is just political smoke and not to worry about it.

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  26. DSB

    Banks got monkey raped today. So sad.

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    • JakeGint

      Do you have a ticker on your desk?

      Let me give you two indexes:

      KRE

      BKX

      Let me give you two recent picks:

      BBT

      PCBC

      Now the quiz — what two predominate features do all these tickers hold?

      (This is not a trick question)

      ___________

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  27. OldA

    The Chinese politicians are meddling in their markets, and the US politicians are meddling in our markets. Stand aside until the meddling is done. No one knows how this will play out. I said it yesterday, the market has changed from buying dips to shorting rallies…we are now in a downtrend.

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  28. asshole

    What ‘tentative recovery’ are you talking about? The only recovery in the US is in your warped mind. I am still waiting for gold to hit $500, that GTC order never got filled…

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  29. TraderCaddy

    A 3-5 year period would allow a new administration (if Obama loses) to change the rules and regs again.
    But then again the uncertainty….

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  30. Mr. President

    Check out HBAN

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    • Doc

      Lots of people talking about HBAN, maybe its time to sell…

      Got a solid 20% gain here.

      I don’t really like it when a stock runs up the day before earnings. Too many speculative buyers.

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      • Mr. President

        Indeed, I took my profits at $4.30. However, considering the rampant insider buying as of late, I would not be shocked to see a blowout quarter.

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  31. DPeezy

    You can cut the fear with a knife, ovah heah…as if y’all have never seen a selloff.
    Settle down, kids. Or has the miracle rally made you all “pillsbury”-soft?

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  32. TraderCaddy

    Out of SMH for the 8th time today.
    Feel free to crash.

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  33. James

    Hey BULLS — “fuck you, you’re dead” 🙂

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  34. Big Mike

    http://www.optionmonster.com/webcasts/volatility_sonar/player.jsp?nc=1264105369580

    Its interesting how the futures isnt spiking up as the spot…

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  35. wilmer

    If we wait until the stock market gives the all clear there won’t be any urgency to fix the problems that got us into this mess in the first place. Americans, and the financial markets suffer from situational amnesia. After all, this all began with LTCM back in the 90’s. Even after the events of the last year there are still those who are so deluded as to think we can just create one bubble after another indefinitely. While the other 90% get stuck with the bill.

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  36. Sierra Investor

    Fuck Wall Street!! Paper pushers!

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