You’re not allowed to short bank stocks anymore. That shit is illegal and the SEC will punch your face off for it.
See, by shorting bank stocks, you are fucking up the government’s mojo, with regards to ripping off retired coal miners and sanitation workers.
For the most part, banks are all about taking the life savings of school teachers and fire fighters, then pissing it away on some exotic investment vehicle—like a CDO squared.
Soon you will hear of inquiries and rumors of inquiries from the SEC. They will come down hard on hedge fund managers who might have emailed a colleague: “LEH is a fucking pig.” There will be public hangings of these short sellers, since, after all, it was they who decided to make money market funds a risky investment, right?
In all seriousness, the people at [[FNM]] and [[FRE]] have important friends, who hold powerful government positions. We all know they are insolvent. But, they will not be allowed to fail for obvious reasons.
The right thing to do is to let them reorganize, cancel most of the debt by converting it to ‘new equity,’ then reissuing new shares, after reorg. Instead, it appears the Fed will keep this brain dead patient on life support, in the most inhumane manner. No matter what, eventually, FNM/FRE will fail—due to the flawed structure of their businesses.
With regards to today’s trading, I kicked out my last 15,000 [[UYG]]. Bank stocks are spring loaded again, on the backs of [[JPM]] earnings.
Did anyone doubt Jamie Dimon’s ability to pull rabbit out of his ass?
I am still holding my [[RKH]] position, in order to hedge my regional bank shorts.
Right here, I like [[RIG]], short [[VLY]], short [[PACW]] and short [[WABC]].
Bank stocks are being pumped up by asshats, who play the accordion while preparing spaghetti with meatballs.
Top pick: RIG
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