What Should Happen
With the Pimco, Blackrock and the NY Fed suing BAC, the floodgates have been breached. This should open up the banks to massive lawsuits, worldwide, for selling fraudulent MBS. Again, it’s not about the home owner, who gets a stay of execution. It’s about the mortgage process not being legal, which essentially opens up a legal loophole for institutions to be “made whole” on their MBS investments. It’s not a matter of being “nit-pickers.” These institutions have no choice, whatsoever, than to sue the banks, as it is their fiduciary responsibility.
Now we know why the banks were sitting out the rally. Smart/insider traders knew about this news and positioned accordingly.
How will this affect the market?
Again, it’s only my opinion, but this lends to the idea of a pause or sell off, following such a big run. Investors will want to digest the news, evaluate the potential damage to the banks, and book profits, ahead of the elections.
What type of downside action are we looking for?
I am looking for total destruction of this entire move higher, bringing the Dow down to about 10,000, or a smidge lower. I make such predictions with a big grin on my face and pistol in my pocket.
Finally, I sold out of a bunch of rentals today; but still hold other “stuff.” I am not quick to jump in the bear cave , following a 200 point decline. Ideally, I can sell out of more longs, on a reflex bounce tomorrow morning.
UPDATE: I sold short SPG.
46 Responses to What Should Happen
fig
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FAG
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Second that.
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Phillies and Yanks are totally toast. Series will be the lowest rated WS in history.
MLB is done.
The Fly is God.
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F$$K off, piker.
The Fly is God.
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Let this me a lesson to you pikers: Mess with the banks and they will take their trade bots and go home.
Enjoy the exquisitely priced shares you bought last week.
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Let this “be”
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Chalk up another win for the invisible edit button.
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No edit button= delightfully wicked and amusing. It can nail anyone.
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My edit button works fine.
Is there a problem?
Loaded up last month on black swan puts for BAC, JPM etc. and I am certainly neither smart nor an insider. We are in a slow motion train wreck that will result in many, many fortune cookies…which is itself ironic because guess who will be left with the capital to pick through the pieces?
That’s right…
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I SOLD BAC puts a few minutes ago – Nov 12′s at .67
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Is it me, or does Mel seem more pensive in this new av?
Is it the new meds?
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Catch me on your local PBS station soon!
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Damn your avatars are making me pee my pants!
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Is that Mel Gibson in the avatar?
I think the phone recordings made by Gibson’s ex-girlfriend Oksana Grigorieva were post produced on an audio workstation. Her voice that we hear was over-dubbed later, and that is why she is so composed and “lawsuit friendly”. Odds are she was just as abusive on the phone as Mel. We are hearing coached, calculated responses from her that were added later, replacing what she actually said on the phone.
You heard it here first.
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Might be a good time to short anyone reporting tonight – hard to see a positive reaction in this market to any earnings report…JNPR, ALTR & CREE all report tonight.
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Winner, winner, chicken dinner…JNPR & CREE blow up, ALTR is ok but stock isn’t moving much…
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Don’t blame the Fly for all of your fully margined, long positions. Blame yourselves.
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You mean like 135% margined?
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Would love to hear his rational on his VXX position. I have to assume he JUST FUCKED UP!
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Apple needs to start a bank, so it could take over all of the other crooked banks, and then the bank index could go to new highs.
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Holly shit, the Fly was listening to Sanatra earlier today? Such a thing has not happened since the yester years of 2008.
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And the next thing you know Fly will start crooning to Sinatra in the shoes Grandpa Fly gave him.
Speaking of Grandpa Fly, isn’t his birthday coming up soon?
WOW. how did you remember?
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Crazy memory for details from long ago but couldn’t give you the name of somebody I met 5 minutes ago.
I can tell you what my son scored on a particular hole during a particular round , including the weather, at a golf tournament, for example, at Sunriver, Ore. in July 2004.
But I can’t recall half of what my wife asked me to pick up at the grocery store without it being written down.
Won’t be be long, son.
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TraderCaddy- sounds like you remember what is important and the rest is optional.
That seems just fine to me.
Scary correction needed in order to force QE2 into reality, so far QE2 is just talk
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Okay, so all or most banks will get hammered. At what level do we see them bounce? With all time low interest rates most banks are going to make money going forward. Do they get attractive after a 10% smack down or will they drift lower than that? I wouldn’t buy any today as I expect today’s news to lead to more selling tomorrow. However, I’m looking for bargains a week from now if they get oversold.
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Forced buying of the dollar . . . got to move out of China . . . all that debt chasing only a sniff of cash . . . forced buying leads to more forced buying, and what the fook, are we back in 2008? Nah . . . but maybe for a while.
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I am looking for total destruction of this entire move higher, bringing the Dow down to about 10,000, or a smidge lower. I make such predictions with a big grin on my face and pistol in my pocket.
Unloaded, I hope.
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Too late. I just shot my balls off.
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I agree but isn’t tomorrow a Fed POMO day?
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No one talking about CWTR – down 35%, but that doesn’t bode well for retail….they refreshed their fall fashions and no one showed up.
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Fat mountain whores. Nothing to see there.
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The Fly knows nothing about CWTR – he only rocks FUBU and Rocawear – and back in the day some Z Cavariccis and Cross Colors.
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Top 5 “Buying on Weakness” names, 10/19/10 (dollars in millions)
SPDR S&P 500 (SPY) $354.72
Citigroup (C) $77.51
Microsoft (MSFT) $65.92
AppleInc (AAPL) $ 63.97
PetrlBra ADS (PBR) $37.25
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everyone including dumbass knew this was coming, so let me ask ya, wouldnt that be buy on the news?
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Pomo indeud
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Yep The Homo Pomo is tomorrow which could scare the Dollar Bulls….But this so makes me smile, I will see if we get a limit down on the Shanghai Futures tonight http://www.shanghaidaily.com/article/?id=452164&type=Business
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Meta Financial (CASH) has been kicked down the stairs by 60% since Oct. 12th.
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About a month back i predicted a 500 point drop on oct. 21st during a message convo with Bullish (the legit one). Asked for a VXX tshirt if i called it correctly. Never thought it could be this possible.
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Getting a little ahead of yourself there, Shecky.
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“Scary correction needed in order to force QE2 into reality, so far QE2 is just talk”
QE2 is a fantasy that is being jawboned by the Fed. It will happen but it won’t matter in the long run because the losses morph what the Fed can do.
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Thank you for the sensible critique. Me & my neighbor were just preparing to do a little research about this. We got a grab a book from our local library but I think I learned more clear from this post. I am very glad to see such great information being shared freely out there.
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