The market is fading. That was gay.
Basically, the Fed just fucked the market, until its next meeting. They should be cutting rates now. Instead, Ben and his dumb friends opted to jawbone Wall Street with promises of lower rates, which got played out rather quickly.
So, barring a surprise rate cut, prepare yourselves for the “homo-hammer of certain death” to rain down on you, as equity prices get knee-capped by Fed inaction.
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No shit – that was fun. Was watching the futures during the entire fucktarded event. Five months ago that would have sent the market up a couple hundies instantly. We couldn’t event get back to the initial erection when word came out. All of this after the drubbing the market has taken. I closed out my UYG and UWM for a nice nice skim. Am now adding to my RTI and FCL shorts, as well as my SMN long. That was a brief break from the Basics, but now it’s back to the basics. Woaaaahaaahhaaaa….oh geeze…too fucking funny.
Market in dire need of viagra….or women with bodacious tatas.
Why aren’t guys like the Fly Fed governors? I’ve never seen such a lame bunch of academics than these bozos.
May even get into a double inverse, layout the market, shit in your face for a perfect “10” TWM!
Classic economic theory calls it “pushing on a string.” Non-classic (sic) economic theory asks: What would George Costanza do? Do the opposite.
People are not going to capitulate knowing that the helicopter is in the air. On the other hand the market wants to go down to induce cut.
The ‘homo hammer of certain death’ appears to be raining down on the bears.
Someone bought out Countrywide ?
Damn wtf should I what to do?? Hold or sell CFC now? Where’s my Broker @. I thought it would be at least a year before I turned green in CFC, heh.
Hold CFC . They are too big to fail. They hold 25% of all mortgages in the US.
Ben is smarter than everyone here, except me.
[[BAC]] in talks …. biggest investor!
Betting against heavily tanned elderly Italian men with leathery skin is a bad bet.
THE TANNED ONE WINS!
CFC is quite a snag by BAC. Fly needs to sell BAC the Brooklyn Bridge.
if CFC, in the desperate shape it is, is picked up… what about the rest? consolidation in housing…mortgage ins…banks…brokers…?
when life ands you lemons…
Seems like the bottom to me.
BAC will make Mozilo their Sr Director for development of Suntanning Parlors in the Far East ….
Viz
hOW Much will BAC pay for CFC ?
The irony is there were similar rumors back in February 2007 that BAC would buy CFC for around $50 and the stock jumped from $40 to $45. With the looks of things BAC is unlikely to pay more than $10-15 now. If Mozillo had sold back in Feb he’d have looked like a genius. LOL
Boomer: The bottom will be in IMO when there is sickening waterfall type cascade of stock dumping. It hasn’t happened yet.
Fly …. since you’re so negative on Oil, why haven’t you gotten on board the airlines? I asked this a day or two ago and nobody responded … three pronged reason for upgrades: lower fuel prices, rising fairs due to route cutbacks and merger/consolidation.
Seems like The Fly would be all over that shit, No?
If the BAC CFC rumors are indeed true it would be the impetus for a rally in the financial sector and the market as a whole. Look for 3-5% upside in major indices in the short term. Also remember back in August that BAC ponied up $2 billion for a stake in CFC, it also marked a market bottom.
I hear that Dynegy is going to buy Enron for $10 billion.
BAC will be shoveling mountains of shite in hope of finding a pony.
ottnott-I also heard that WorldCom (WCOM) is buying Etoys. Should work out real well.
This is good news / action for market. Holding out until today’s finish, then assessing. Shopping list in hand.
Mozilo can retire now to a place where UV light is strongest.
As Cramer is saying now …. if the Fed wants a CFC bailout, isn’t WM also on the Fed list?
There is a pony in there, however, it died from skin cancer.
Mozilo has his own in-house dermatologist, so he can “push the envelope” with his tanning agenda.
“Ben and his dumb friends”
Oh yes, and you are so much smarter than him and his “dumb friends”. They control the street, while you control chump change…yep you got it all figured out.
WM on the list (not mine, the PPT’s)
I think Bernanke is a smart man….just in the wrong place at the wrong time. The timing on the BAC / CFC news was a nice touch.
Btw, where is Jake? I thought I would mock his idol Shorticus today. (No fear of lightning bolts.)
The market, and maybe BAC, seems to think that CFC is a really cheap way to become the country’s biggest mortgage operation.
Maybe, but I doubt it. I think the mortgage-issuing business model is busted, and the old leaders will be foundering when the cycle turns up again.
The mortgage servicing biz will still be useful in the next cycle, but, man, what a headache it is going to be for a few years. I don’t see how anyone could put a reasonable estimate on the value with the strong potential for massive litigation.
I don’t know jack about the banking or the mortgage businesses, so just assume that a dog typed this.
From Naked capitalism blog
Forgive me, but we are going to be a bit lean on posts tonight. I had too much to drink with someone who is terribly plugged in (security clearances AND knows tons of people in academia and the officialdom personally, both here and overseas).
Unfortunately, I can’t use many of the specifics he conveyed, but he is a very upbeat sort by temperament but also has been studying the banking/credit mess. He sees us going down the Japan path. Banks will not be technically bankrupt, but will have so many bad assets on their balance sheets, and will have taken hits to their equity bases, that 18 months from now they will be unable to make new loans. They will be quasi nationalized. BTW he said this in a completely evenhanded fashion, as if he was giving a weather report.
This, mind you, comes from someone who has written frequently for the American Enterprise Institute and tells me the Treasury and the Feds are working on this scenario now. This is far more dire than any forecast either yours truly, a constitutional skeptic, or even uberbears like Nouriel Roubini, have been putting forward.
Now that’s my kind of rumor – where they admit up front that it came from a drunk!
I’ve been thinking about ETFC the past couple of days. It’s balance sheet is only slightly smaller than CFCs. And looking at the deal Ken Griffin struck with ETFC, he wins HUGE if he can keep them out of bankruptcy.
With the Arabs, Chinese, Singaporeans, private equity, BAC, Warrent Buffett willing to rescue any financial firm, betting against ETFC is probably as bad a bet as shorting CFC.
pablodpt-Based on the Naked blog I can only assume that the Feds will bring back the WPA,CCC,,PWA etc. Good times ahead.
pablodpt,
Nice try, financial stock bearshitter.
I wish you many margin calls.
Yeah, the only unsubstantiated rumors we trade on around here are the Fly’s. Get lost, pablodpt.
Thank you Weed