Watching this interview of Ken Lewis, CEO of BAC, almost makes me feel sorry for the guy—almost. Basically, he’s a good ol’ southern boy, naive of the insidious NY/Merill Lynch ways. After he found out that Thain donkey punched him into buying MER, he went to the government to inform them he wanted out of the BAC/MER deal, since there was “material and adverse changes” to the fundamentals at Merrill.
The government responded with a “fuck you, you’re doing the deal for the country” rap, essentially strong arming Ken into a deal spearheaded by modern day “Northern Aggression.”
Egregious!
I like the way the market is trading and would not short anything, with exception to oil, at these levels. Geithner is speaking on Monday, regarding TARP II. And, the stimulus bill is likely to be passed within days, if not tonight.
As you know, “The Fly” is all about playing the orient, via CHL, YZC, FXI and JRJC, with a little side order of WX.
Some other “Chinese Burrito” plays worth considering are:
ACH, SNDA, EJ, CMED, MR, GU and HNP.
Within Steel and Iron, I like MT, RIO, TS, SCHN, NUE and for a dice roll CMC.
I like equipment firms JOYG, BUCY and dice roll play MTW here. And, if you are really adventurous, SKS is pricing in outright bankruptcy. Actually, it is likely that SKS will go belly up. However, into unchecked optimism, there may be a trade in SKS worth taking.
Finally, I smell mustard seeds and I do not like them. I will keep all of my DUG/ERY, due to my core belief that the oil/gas industry will suffer grave consequences for levering up their balance sheets into weak oil/gas markets. I will restrict my longs to non-financials, focusing in on the traditional “global growth” aka “Chinese growth” plays. And, I will look to buy back SRS/FAZ lower, over the next week or two.
In short, this is a relief rally. It can last a few weeks, so be ginger with your short positions.
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The Fly is God
Fly,
target for faz on the downside?
FAZ can hit low 30’s
Fly,
Your man Krullster – classic manic form today.
http://www.youtube.com/user/THANOS43
hugs fly.
What a bunch of rimjobs. Look who the President has advising him now. Not a single person with real “outsider” credentials.
Now I have have even less confidence in this administration, and I was trying to be optimistic.
http://blogs.abcnews.com/politicalpunch/2009/02/more-details-on.html
So if FAZ hit’s 30’s what’s in it for FAS?
this rally is mustard seeds in a fucking garbage can outside of the blue diner.
but it’s cool. i just sold the FCX i bought 5 pts ago, so that feels good.
The Zombie licks Oprah’s sphincter
Dugery
Indeud
I think I’ll take some “make believe mark to market” money and buy a brand new ferrari. Yaah that’s it!
Actually the joke is on Merrill. Lewis paid in Confederate money.
Touche Caddy.
A one hunfed dollar Confederate bill sells for over $100 – odd, no? NO BAIL OUT FOR CALLYFORNICATEIA!!!
SLV looks like it wants to hit $13. I sold covered calls for 0.45 a pop a week back. Now I’m not so sure. At this rate SLV could be $14+ by opex. Money moving outta treasuries and into commodities – GLD and SLV especially. Not to mention crazy moves in my commodity stocks – FCX, POT.
Indeud, add it to the dictionary.
Krull video was great. “Backtest my ass.”
Thain is a tool. You could open fucking cans with his cheek bones. By far the strongest part of his exoskeleton.
A few weeks? Not in this environment. Too many land mines and sinkholes (not to mention layoff notices).
Calculated Risk’s breakdown of employment data says that job losses in retail and construction still have a long way to go.
And, aside from the self-imposed crockery of the Obama/Dem stimulus and bailout plans, the GOP has clearly adopted the same strategy they used in the early days of the Clinton administration. The goal is to deny the Dems any important victories and to make Obama look as partisan and clumsy as possible. So far, Obama and the Dems have been making that an easy task.
Whether or not the above is to your liking, it definitely won’t help confidence in the US either at home or in the rest of the world.
Ken Lewis looks like a fucking window licker. Confused, taken advantage of, and out-of-touch with what’s going on in his own industry. Really embarracing.
Throw him under the bus.
SFLY: from conference call
What became very clear during this Q4 is that our strong brand, combined with a relatively low cost, high sentimental value and a holiday-oriented product line, has the potential to produce solid operating results even in times of great economic challenge
How many companies are saying that?
embarracing indeud
Oh man, that Krull video made me tear up.
nobodyspecial, you should learn how to spell embarrassing before criticizing. For the record, I bought BAC today largely based off Lewis’s comments. CFC does have a lot of earnings power from their mortgage servicing operation. Also, I trade leveraged loans and ABS for a fund, and they’re running hard to start the year which probably limits some of the market to market issues the banks experienced in 4Q. So,..when Lewis and senator Dodd both say nationalization isn’t even being considered, I consider it a buy signal.
Dollar dollar bill continuing to sell off here.
Good news for bulls.
Earl bulls too.
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added BGZ $59.50
deleted double entry
The goal is to deny the Dems any important victories and to make Obama look as partisan and clumsy as possible.
Just like a Dem. It’s all politics to you people.
Yeah, by stopping a bunch of egregiously wasteful fuckery that’s being rammed down the public’s throat ($4 bn for indicted ACORN?? WHAATT?) at breakneck speed to the tune of $1.3 TRILLION (with interest expenses), the GOP is “trying to deny the Dems a victory.”
Pwaaah! A pyrrhic one, maybe. Could it be they are actually trying to avert a full blown Depression caused by Hoover-FDR-like gummymental retardery?
$4bn for ACORN? A “victory?” Yeah, for certain parties not interested in the economic well being of the US.
Guess what? If you don’t want to look “as clumsy as possible” then don’t try to pick up as many gold bricks as you can off the floor at one time and then run sprinting for the exits.
__________
Whether or not the above is to your liking, it definitely won’t help confidence in the US either at home or in the rest of the world.
Shoot, the POTUS can take care of that problem by going on Arab television again and doing some more obeisant ass kissing. Maybe throw a couple more tax dollars at Third World abortion clinic openings.
They don’t want to have “confidence” in us, Otts, they want us enmired in the same socialist shit stream they are. Misery loves company, and hates success.
______________
VIncenzo! The facking BOXES, man, the BOXES!
Now, Now Jake Gint, settle down! Quit pushing “tired old ideas of a by gone era” and “propping up failed policies that largely got us into this mess.” Can’t you “change and hope” for god’s sake. “Its a stimulus bill..We are supposed to spend” We as U.S. Americans need to trust our president. I am linking you up with some Brittany for support. Here you go: http://www.youtube.com/watch?v=PPEV6twzxmE
Quit hating player!
Jake, your “$4 billion for Acorn” rant is perfect evidence of my claim. The GOP has made it a big talking point. You dutifully pick up the shovel and start slinging shit. But here’s what the $4.19 billion is actually for:
5 For a further additional amount for ‘‘Community De
6 velopment Fund’’, $4,190,000,000, to be used for neigh
7 borhood stabilization activities related to emergency as
8 sistance for the redevelopment of abandoned and fore
9 closed homes as authorized under division B, title III of
10 the Housing and Economic Recovery Act of 2008 (Public
11 Law 110–289), of which—
12 (1) not less than $3,440,000,000 shall be allo
13 cated by a competition for which eligible entities
14 shall be States, units of general local government,
15 and nonprofit entities or consortia of nonprofit enti
16 ties: Provided, That the award criteria for such com
17 petition shall include grantee capacity, leveraging
18 potential, targeted impact of foreclosure prevention,
19 and any additional factors determined by the Sec
20 retary of Housing and Urban Development: Provided
21 further, that the Secretary may establish a minimum
22 grant size: Provided further, That amounts made
23 available under this Section may be used to (A) es
24 tablish financing mechanisms for purchase and rede
25 velopment of foreclosed-upon homes and residential
223
1 properties, including such mechanisms as soft-sec
2 onds, loan loss reserves, and shared-equity loans for
3 low- and moderate-income homebuyers; (B) purchase
4 and rehabilitate homes and residential properties
5 that have been abandoned or foreclosed upon, in
6 order to sell or rent such homes and properties; (C)
7 establish and operate land banks for homes that
8 have been foreclosed upon; (D) demolish foreclosed
9 properties that have become blighted structures; and
10 (E) redevelop demolished or vacant foreclosed prop
11 erties in order to sell or rent such properties; and
12 (2) up to $750,000,000 shall be awarded by
13 competition to nonprofit entities or consortia of non
14 profit entities to provide community stabilization as
15 sistance by (A) accelerating state and local govern
16 ment and nonprofit productivity; (B) increasing the
17 scale and efficiency of property transfers of fore
18 closed and vacant residential properties from finan
19 cial institutions and government entities to qualified
20 local housing providers in order to return the prop
21 erties to productive affordable housing use; (C)
22 building industry and property management capac
23 ity; and (D) partnering with private sector real es
24 tate developers and contractors and leveraging pri
25 vate sector capital: Provided further, That such com-
224
1 munity stabilization assistance shall be provided pri
2 marily in States and areas with high rates of de
3 faults and foreclosures to support the acquisition, re
4 habilitation and property management of single-fam
5 ily and multi-family homes and to work in partner
6 ship with the private sector real estate industry and
7 to leverage available private and public funds for
8 those purposes: Provided further, That for purposes
9 of this paragraph qualified local housing providers
10 shall be nonprofit organizations with demonstrated
11 capabilities in real estate development or acquisition
12 and rehabilitation or property management of single
13 or multi-family homes, or local or state governments
14 or instrumentalities of such governments: Provided
15 further, That qualified local housing providers shall
16 be expected to utilize and leverage additional local
17 nonprofit, governmental, for-profit and private re
18 sources: