As you read this drivel, I am down a little more than 3% for the day, OUTPERFORMING most sectors thanks to my 30% cash horde. Truth be told, it is very tantalizing to buy stocks down here. After all, we are absurdly oversold, based upon normal metrics. But things aren’t exactly “normal” are they?
I am pulling a decent amount of money out of my banks today and tomorrow. Not because I believe there will be a bank run, but because it’s entirely possible. They’re all fucking liars and there is no way I can guarantee liquidity, if BAC-C-MS seizes up. Siemens is pulling money out of Socgen and the COO of Blackstone said he can’t get financing for more than $1billion in Europe.
$1 fucking billion.
I will not buy stocks, unless I sell something else. The 30% cash level is now permanent, due to looming catastrophe. If stocks bounce here and run, so be it. The penalty for being wrong here will be finality. We are talking about a major move to the downside, without curbs or government help. The Tea Party will have their dish served on hot platters of surplus coals.
On the other hand, there is no way I can short stocks here either. We are too oversold to short now. While some of you are addled with ADD and find a need to trade something every 10 minutes, “The Fly” is interested in big moves. Therefore, my only concern now is preservation of capital, not capital gains.
As the day progresses, look forward to margin liquidations on an industrial scale. There are so many fucktards long commodities, short dollars, it’s almost funny. Granted, it’s been a popular trade to be long GLD, short UUP. However, the pain trade has now been applied to the necks of gold bugs and they shall join the margin liquidation party soon.
It’s Hugh Hendry TLT all day every day because nothing is safe. Think about that for a second. Nothing is safe.
Food for thought: Public companies like SCMR are now trading near net cash. What is their cash invested in? You got it: treasuries.
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A.I.G.
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So Horatio Clawhammer is not making a comeback?
What does a typical margin call involve? Is is as simple as a “call” or is there a series of events.
I think they just contact you via email and tell you to add cash to your account or sell enough to meet the call. If you don’t act by their deadline, they will sell whatever they need to at any price to meet the call.
Thanks!
Wow, that’s bearish.
Did you know I was the original owner of Napster?
I see no margin calls on the big institutions.
What does that mean? You don’t see it happening, or you don’t actually “see” them? In either case, how would you know?
TVIX been bery bery gud to me. Deflation’s a scary bitch.
it would be a cool protest of sorts, if every trader just went flat all at once say fuck this shit,and go into complete preservation mode,and cause our own collapse…get it over with,or force some kind change
Fly, how/where will you store the cash once you pull it out?
safe, right near my gun
Great, now thieves will steal your gun along with your money.
pussy
It’s pretty funny that he actually believes you when you said you took all of your money out of the bank today. Guys this blog is for entertainment purposes only. Please understand that.
what is funny? he said he is pulling a decent amount (not all) of money out – it seems like a logical thing to do given a repeat of a 2008 liquidity freeze is now more probable than ever.
Fly, comments?
it’s funny that Matty D thinks this site is some kind of joke and is more about comedy then a genius display of a financial mastermind.
It’s humorous that lol is laughing out loud, thinking it’s funny that Matty D thinks this site is a joke.
for you folks that don’t know, “the fly” has a vault 5 stories under his house in the hamptons. in fact, the movie ocean’s 11 is loosely based on a robbery attempt on his vault.
http://www.youtube.com/watch?v=7R-LGGRjWmU&feature=related
Random and InandOut….On the other post, InandOut..what was I suppose to ask him? Random, he told CNBC that about turning things off, but that is his exercise voice, he doesn’t get that winded turning off things.
Truth be told,I thought he was indulging in pleasures of the flesh.
Bank run! I love the helpless look on their faces when you demand big withdraws.
Dick Bove was on Kudlow yesterday saying basically the FDIC is broke. surprised he would say that but he covered it saying “well, the banks have raised more cash than they have in a long time.
I don’t think the average CNBC watcher knew that the FDIC just has created greater complacency and as a result the systemic risk has been there for a long time, but like the vase in the Matrix would it have broke if they hadn’t looked at the problem? The act of realizing the FDIC is broke and such is concerning, and now there is some kind of panic to safety.
I won’t be pulling out my money, but I may grab a few Benjis just for fun.
OK OK, Just like Clock Work..its time for me to say “STUPID Shanghai Copper Bubble”..it took since 2009 to build, and it amazing, so far, watching it pop. This SPX 1120 dip buyers aren’t showing up at all yet..
Hi Neighbor Fly. Be careful if you bury your money in your yard. I saw a couple of your illegal Mexican gardeners with shovels digging around. Juan said he was looking for the way to China to buy some cheap tequila, but I wasn’t so sure.
I hope you liked the matzoh ball chicken soup Mrs. Steve brought over and hopefully it made you feel better.
On a day like this I deserve my own tab on ibankcoin. indeud
Hugh, Fly won’t give me one due to my lack of respect for proof reading..you may have better luck. BTW, did you read the flash PMI’s..rofl..they were sooo ugly.
Remember TN: Don’t forget to TAKE PROFITS!!!
She’s been short since 800. There are no profits to take.
I am a gentleman of the highest order, so would get along grandly with Master Le Fly. I speak and write Her Majesty’s English, not barbarian American pig-latin, so everything I write is honourable[no sic], grammatically correct and spelled properly. Oh and when I’m buying assets, I only by the choice of gentleman everywhere: US Treasury bonds and British gilts, as they did in ye olde days.
ROFL, You miss used “By” and “Buy”..did you do that on purpose?? Very Funny…….Yogi, Yes Mom, I am taking a little off. I am wearing my sweater too, lol, thank you big guy for caring about me.((Yogi))
you know you are a sick individual when your money is betting on stocks to go up in this environment, yet you are rooting for them to fall. I think I have some kind of a problem, is there anyone else like me doing the same thing?
yep…It’s because I refuse to believe it’s as easy as buying every put I can get my hands on and watching my net worth explode to the upside
AAPL puttin’ up a brave fight to HOLD that $400 level !
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… and thar it went !
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the only issue that held up the naz for the last three years to
… pretty much !
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@Fly,
Are you serious–pulling money out of banks? I’m not being ironic. You’re really doing this?
Maybe this is what Bernanke meant when he said he was 100% sure he could control inflation.
get ready for a WILD close…still have 2 more hrs….its gong to be crazy!!!
I did it 2 months ago. Why not? Rather leave it there and let it earn 0.02% in some BS money-market account?
“Hello, Mr. Margin calling.”
Mr. Margin is going to have himself a busy day today making phonecalls!
Interesting shit I heard this evening from a coal trader.
Chinese buyers of coal are having to get wide bank coverage on their LC’s because single name banks are not covering the entire lC.
Credit is drying up.
i hqave more than 30% cash, and i really am seeing some things i’d like to buy, but…
the irony is that the cheapest stocks are what are tanking the hardest, lolz.
lnc at 0.38 of book? gnw at 4.xx? mtl? tck back at 30 bucks? BDCs?
the cheapest stocks are what will tank the hardest if we plunge another 10%.
The Tea Party is blamed for supposedly being an obstacle in getting the economy out of this mess, but little is said about the asshats that put us in this position in the first place.
The last stimulus and two rounds of QE worked so well obviously. Of course the Tea Party is just stupid for being skeptical that more Keynesian worship will solve the problem.
Did they actually have the money on site to give you!?