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
23,460 Blog Posts

Live by the Sword and Die by It

All I hear is cries for government intervention. Everyone is demanding that the government come in and bail everyone out.

Assholes, we live in a free/capitalistic society. This is not Soviet Russia or authoritarian Zimbabwe. How much do you want them to do?

They have already overstepped their bounds. It’s sort of like trying to resuscitate a patient who is dead. Eventually you have to give up and register the time of death.

Listen to me: the financial system is dead. Within days, both Morgan Stanley [[MS]] and Goldman Sachs Group, Inc. [[GS]] will be gone, via bankruptcy or acquisition. The age of the investment banks is over and it ended in a very egregious way.

So, quit blaming short sellers or the fucking Fed for our problems. Wall Street created these weapons of mass financial destruction, now live with them— and die by them.

NOTE: I am not covering any shorts. In fact, I just loaded up on my AXA (ADR) [[AXA]] short. And, I bought more [[SRS]] .

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30 comments

  1. Scared stuiped

    I hope This is capitulation And not the bitter end of life as we know it

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  2. CubsRock

    You’re a Bully. I bet after you punch off peoples eyebrows, you kick them in the nuts.

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  3. hmmmm

    What about reparations for management???? Their egregious bonuses for mismanaging risk and destroying American jobs are utterly appalling.

    We better think of a way to create jobs and consumer saving/responsible spending without firing up the money printing machines or our money will be worth less than zimbabwean shit paper.

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  4. Juice

    Someone put Dennis Kneale out of my misery.

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  5. The Fly

    Dennis Kneale is a fucking idiot.

    With Cramer telling people to buy sept MS/GS calls yesterday and Kneale telling people to buy now, one would think those people on the tv are fucking idiots.

    What do you think?

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  6. CAP

    This is the bottom or real close. The January, March and July bottoms all came in the middle of the month.

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  7. Tyler Durden

    It’s only after we’ve lost everything that we’re free to do anything.

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  8. recusancy

    CAP… But I’m wearing a grey shirt today. All Jan, Mar, Jul bottoms happened when I was wearing a blue shirt.

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  9. Fly's Waiter

    Care for a Meatball?

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  10. The Contractor

    The market recieved a golden parachute with the AIG deal and still people think more govt. intervention is the answer.

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  11. snort

    yellow alert:::: VIX 42.16

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  12. Anthony Brown

    Shorting banned!!!!!?????

    I can’t believe this!

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  13. TraderCaddy

    I should get a patent on my throwup indicator. Works better than VIX,TRIN,A/D, etc.

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  14. j

    Live by the Sword and Die by the model

    Can someone explain something here that’s a little off topic. The banks went off on a tangent relying on math models to price their risk etc.

    Why are we then reliant on climate models to predict the climate and embark on costly mitigation efforts because of climate models?

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  15. Mother Market

    New trading range 9660 to 11000.

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  16. PPT Chairman

    I have summoned Mr. Cox to my office. I have you know, Mr. Cox will be changing the uptick rules and it will castrate all non-American short sellers.

    Life is not fair, and neither is this game. I can change the rules anytime I want.

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  17. Ozark Hillbilly

    It’s not the end of life as we know. It is the beginning of a new way of life. I visualize bank for myself, personally.

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  18. Big Mike

    In all seriousness, hats off to you Fly. You stuck to your thesis all year and you are now making a killing.

    Hurry up with the PPT.

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  19. TraderCaddy

    KRE (regional bank etf) has been + all day except for about 5 minutes.

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  20. gappingandyapping

    This volatility is a fucking killer. Just look at SKF and SRS reverse hard.

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  21. Juice

    Todd Harrison

    01:09:23 PM

    No positions in stocks mentioned.

    This is Life, This is My House!

    So how’s your day?

    As the wheels wobble on the financial wagon, fear has started to permeate throughout the world. It’s well warranted–Bank of New York (BK) is off 30%, State Street (STT) is down 50%, Mother Morgan (MS) is taking a 33% haircut and Goldman (GS) is off 24%. Indeed, if we’re to sell hope and buy despair, the air is thick with desperation.

    So what to do? Through my admittedly tired eyes, there are two potential scenarios:

    *
    We’re approaching a short-term trading low–which is drastically different than a market bottom–that will lead to a trading rally before the resumption of the credit cancer spreads. Remember, tomorrow is expiration and IF there are any bullets left in the gun, they’re gonna spit fire them into tomorrow. And yes, it remains to be seen if they’ll be real or rubber.

    *
    The levee is broken and we’ll spill lower until a natural bottom is found. This would include a “truly” scary close, more pain tomorrow and all sorts of chatter in front of a Black Monday redeux. It’s not what someone would “wish” for but it’s most certainly possible. Indeed, through the lens of select financials, some would say the crash is already upon us.

    Price discovery is a process rather than a point and if I knew the way, I would surely take you home. I’m certainly not smart enough to know–and anyone who says, with authority, that they do isn’t to be trusted–so I will simply ask Minyans to see both sides and allow for all outcomes as we trudge through these truly trying times.

    My grandfather always told me that “this too shall pass” and mark my words, this will as well. The onus is on us to adapt, remain lucid, stick together and find our way through this freaky fray. The greatest opportunities are born from the most profound obstacles and this is where true grit is required.

    As always, I truly hope this finds you well.

    R.P.

    Mike Mish Shedlock

    01:01:06 PM

    No positions in stocks mentioned.

    America’s return to basic industry from structured finance…
    Inquiring minds are reading Quick Hits: Kraft Singled Out for DJIA.

    To that I would like to add that the WSJ is reporting the composition of the Dow industrials was last changed in February, when Bank of America (BAC) and Chevron (CVX) replaced former Kraft (KFT) parent Altria Group (MO) and Honeywell International (HON).

    AIG (AIG) joined the Dow industrials on April 1, 2004.

    Full circle. Kraft was kicked out, AIG was thrown in. AIG is tossed out, and Kraft is back in.

    It’s a beautiful system.

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  22. nik

    KRE +7% ???

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  23. Fly Leech

    CORS still got game.

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  24. gappingandyapping

    They should just ban all short sales and even sales. You can only buy fuckers.

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  25. Employee8

    STT just denied holding those securities for themselves … they are only the custodian ….

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  26. TraderCaddy

    Bill O’neil (used to be with Merrill) is a contrary indicator. Usually wrong, at least for the last twenty years. I was wondering where he was hiding.

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  27. Market Fool

    Stevie Wynn new SEC Chairman!

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  28. TraderCaddy

    Okay, admit it. How many daytraders vomited this AM?
    I did once while going in and out of GS and KRE. I’m done for the day. Need to protect my gains. Tomorrow is another day for us daytrading morons.
    Life used to be easier when I had a normal job like doing trial work.

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  29. Market Fool

    I actually went surfing from 730am (PST) to about 15 minutes ago and caught the updraft quite fucking nicely 🙂

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  30. GW

    Fly,
    YOUR STRONG…Considering the worries with money markets we may just see another pitfall for the markets adding more stress to our “weapons of mass destruction”…
    See those swap spreads?

    The worlds injection of money last night was like trying to put a forest fire out with a cup of water…

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