I’m in Oklahoma City, throwing fire crackers, from the back of my town car, at the locals. This city has a certain “Great Depression” charm to it. It makes me want to give up all hope and become a mechanic or even worse: an IT consultant.
As you know, I bought Lehman Brothers Holdings Inc. [[LEH]] yesterday, based upon ouiji board advice. I covered my short, then went long. However, I will sell it, first thing Monday morning.
As a whole, my hedging moves worked to a charm, as I am going nowhere, fast. Literally, I am up like 0.10%, as you read this.
Look the balance sheets of the banks are grotesque— and make me want to punch their eyebrows off. We are getting very close to “boot stomp” territory in the market, based upon price and seasonality. My best guess: we tread water for another week then get flung into a river made from gasoline.
Oil and gold are pulling back a bit. As a result, my purchases of [[DIG]] , Southern Copper Corporation (USA) [[PCU]] and Yamana Gold Inc. (USA) [[AUY]] are not helping my plight for greatness.
And, as unbelievable as it may seem, morons with propeller hats are buying Legg Mason, Inc. [[LM]] , as Fannie Mae [[FNM]] /Freddie Mac [[FRE]] die a slow death.
This is a huge miscalculation, on behalf of low IQ investors.
To close out the day, I will probably short more LM, while nibbling at some more war stocks: Lockheed Martin Corporation [[LMT]] , General Dynamics Corporation [[GD]] , AeroVironment, Inc. [[AVAV]] and Northrop Grumman Corporation [[NOC]] .
NOTE: I will sell my bank hedges, [[UYG]] , [[RKH]] , early next week.
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“While enthusiasm is necessary for great achievements elsewhere, on Wall street it invariably leads to disaster.”
Does Neuberger Bergen compete against Burgermeister Meisterburger?
Fly,
Visiting your immediate family again? Thanks for the info on LM…
Ducati is at it again, Senor Fly – he is at odds with your phrase, “plight for greatness”. Make any response mild in tone.
My ‘screening software’ recommends a ‘die slow’ response.
hmmm? … anyone know any IT consultants from Okie City?
the talking bobble heads on CNBC are saying ‘you gotta get long this market’
wow .. new bull market! train leaving the station
I agree … defense stocks .. war is a brewing
Hows scum bucket It looks like she lives in a homeless shelter. Oh my bad that is just the of the mill OKC home……
Oklahoma is a barren wasteland. How people live there, I don’t know.
The whole friggin state screams “dust bowl”.
Gee, FRE and FNM…on a long enough timeline, everyone’s survival rate is zero.
Mr Practical
11:28:15 AM
No positions in stocks mentioned.
Irresponsible
I wrote a year ago that any professional money manager who was buying Fannie Mae (FNM) when the company had not put out a financial statement in a year and a half was not acting as a fiduciary. How can any responsible fiduciary buy something as an investment for his investors when he knows not what he is buying.
When you see how much stock several large mutual funds own in this company you can see just how irresponsible they were.
If I were invested in one of these mutual funds I would be calling my lawyer.
Bennet Sedacca
11:15:58 AM
No positions in stocks mentioned.
A quick preferred market commentary…
Moody’s just lowered the GSE’s preferred ratings 5 notches from A1 to Baa3, one notch above junk. It lowered the ‘bank financial strength rating’ to D+, one notch above default.
Lehman (LEH) preferred trades like garbage on the Korean talk. 14%.
So anyone that thinks the Government is gonna help the preferred holders is wrong. Also, if you think anyone will let Korea buy Lehman outright, forget it. Ain’t happening.
The preferred market is irreparably harmed.
Risks remain high.
Going long LEH yesterday was the epitome of a Costanza trade. Well done.
It proves that you secretely respect degenerate OTB gamblers.
Are you fucking kidding me? You are really in Scumbucket’s home city?
What are the odds of that.
PS- for the rubes, OK City is awash in petrodough. You should wish your credit card maxing home equity loan had an anchor there.
You think maybe Fly is there pricing vacation homes? I believe he put a moratorium on low IQ posting… Let’s try to adhere to it, yes?
Ironically, I am not in Flyover country right now but in Fly country.
Posting on the Crackberry from da beach. Quite possibly the loveliest August day in Noo Yawk in my experience.
Would you concur Bruce?
Aside: massive Chinook copter just went by about 100 meters over my head. Definitely a lot more military presence in this area than when I was a kid.
_
Ask Mr. Practical how a fiduciary could ever own a CDO. Or a CDO squared. Or any of that alphabet soup of asset backed structured crap that’s virtually impossible to analyze. Asset managers get paid excessive compensation for their investment prowess, analytical skill and judgment. Yet they commited money to that crap without being able to independently analyze the underlying credit just because some credit rating agency said it was a certain credit quality?
Unconscionable.
Apparently you hit a train with a firecracker … sure you weren’t throwing hand grenades!?!?