This is getting ridiculous already.
By the way, the floods in the mid-west will adversely affect the numbers out of both [[LNN]] and [[VMI]]. I forgot to tell you about that yesterday.
Thus far, the banks are being blow-the-fuck-out, partly thanks to [[FITB]] (nice call Jakegint). However, as you know, the problem is much bigger than that. Even great banks, like [[UB]], are being hit.
The good news is, my new short positions in [[CATY]], [[WTFC]] and [[PACW]] are working like whores of the night.
The bad news is, my stupid UB position is being jelly knocked. For now, I will hold it and endure the losses, like a fucking man.
Some quick ideas:
Get long [[RIG]], it’s ripping.
In addition, I like all of my bank shorts here, especially “The Five Reverse Horseman” of death and financial Armageddon, via [[FED]], [[DSL]], [[CORS]], [[FHN]] and [[PACW]].
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Leaning on PACW hard here.
I remember the day you said your target for SKF was $160, how foolish I thought you were…
I made up for that by helping push RIG over $149 🙂
Some flood pics
http://www.boston.com/bigpicture/2008/06/mississippi_floodwaters_in_iow.html
What about IWA .. do you think that farmers will stop paying their phone bills ? I guess the satellite business and cell phone will be OK, a farmer still has to use the internet and phone.
I have IWA as a medium term income play. 8.4% yield you know.
Thanks Gunners.
In addition, feel free to short
bbt
aig
ibm
pool
bpop
ewbc
hban
Amazing pics, Cubsrock.
Fifth Third Bancorp’s (FITB’s) strategy over the past 10 years was to buy up as many small banks as possible in the Ohio, Indiana, Kentucky area, mark them up in value, and then sell the entire bank to a large money center bank.
The credit crunch has made a shamble of its strategy/ponzi scheme. No bank can buy it and now it owns all the bad debts of these small banks. There’s no value left.
FITB has languished in financing infrastructure to provide good service to customers while concentrating on its roll-up strategy and has lost many customers to PNC (PNC) banks which has entered the area and performed well. This is evidenced by PNC stock price vs. FITB.
Please take note in the action in GM…
If I could think of a company that will be hurt the most by what it is unfolding it’s General Motors (GM).
Forgetting its issues of the past, think of the issues in the future.
The company is going to now face millions of SUV’s being thrown at it as leases run out. Its finance business is a mess. And who would lend GM money? No one.
This is what I meant the other day in my article. The obvious companies in trouble are financial institutions.
Now comes the true contagion. And this part is gonna leave a mark.
The FLY:
Have you read this article which made the front page headline news:
http://seekingalpha.com/article/81291-recent-world-events-are-bullish-for-metals
Time to ride the palladium rocket.
What do you think will happen to metals when there is no rate cut?