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
23,325 Blog Posts

CREDIT SUISSE COLLAPSES; BANKING CRISIS GOES GLOBAL

Shares of CS are down more than 25% this morning on basic fundamental math which says the company is at risk of default. The 5yr CDS are at RECOURD highs; but more importantly, the 6mo CDS are at 1500 — nearly a 1000bps inversion over the 5yr. In other words, it’s over.

Shares of nearly all European banks are HAMMERED to bits and pieces, whilst at the same time — Le Fly reigns supreme +210bps thanks to a very large overnight UVIX position.

Our regionals are getting SMASHED again with PACW and FRC down 15-18%. I’d like to offer you even worse news if I can — but that’s all I got for now.

Do not underestimate the asshole dip buyers. You saw those fucking retards out there on Twitter yesterday — jerking off to shares of FRC. Those animals are still on the loose.

As for me, I closed out UVIX and opened a small 10% position in FAZ — just for fun. Should we gander into another credit crisis, I’d be very sad if I did not profit from it in some sort of fashion.

My playbook is as follows:

Avoid morning nonsense. Re-enter heavily SHORT into the afternoon and hope for the very worst this evening.

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5 comments

  1. Good Shepherd

    I sleep like a baby, being fully allocated to PHYSICAL metal, miners and cash. I am with you in spirit.

    A C C E L E R A T E

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    • iflyjetzzz

      I’m in very short term treasuries. Preservation of capital, waiting for the dip buyers to be eviscerated and then I’ll buy when their blood is in the streets.

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    • metalleg

      Smart man

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  2. john galt

    Fun to watch!

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  3. txchick57

    whic h is it? You said you dumped UVIX yesterday.

    In a 100% long book, I closed down 1.53% for the session — all thanks to UVIX. In total, I lost about $40k in UVIX today, meaning that without it I’d be up maybe 4%.

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