Today’s Non-Bailout Cost $1.4 Trillion

I have accepted the stupidity of America. You all know I have been a major hater of the banks. I dislike the CEO’s of our banks as if they were responsible for making my appendix burst. However, I knew, given the situation, the market would crater, without government assistance.

I understand the philosophical and moral opposition to the bailout. Why bail out Wall Street fat cats? Hell, we have gotten too lazy and decadent. It’s time to prepare for some great depression type era.

All of that resonates with my inner evil. But, it’s entirely nonsensical, if you actually take a minute to think about the repercussions.

Your banks will close and never reopen. Jp Morgan and Bank of America will not be able to buy every bullshit bank. The Fed and FDIC will fold tent and reopen as a popsicle stand. Your (low end) job is in jeopardy. Actually, your fucking grocery stores will shut down.

Many of you say “this was going to happen with or without the bailout, so let it burn.” Yeah, that might be true. Actually, I know it is. However, what the fuck are we retarded idiots? If we know what the problem is, the least we can do is try to resolve it. Apparently, our ballot box fuckers thought we needed a little tough medicine. They say: “this is the normal business cycle.”

Oh really?

Tell me how this “normal business cycle” feels when your fucking farm is seized by creditors and your local Mcdonalds shuts the fuck down, due to a credit line explosion.

This is irresponsibility on an epic level. I will now embrace it.

As for my portfolio:

I reduced my risk to nil. I took tremendous losses today, which is doubly sickening since I have been calling for this exact scenario for more than a year. At the present, I have equal shorts to longs. Therefore, I cannot “enjoy” another down 10% afternoon.

So, in closing, today’s market decline cost the “american (idiot) taxpayer” $1.4 trillion in capital destruction. Let me see, $700 billion is less than $1.4 trillion, right?

The good news: we’re not done yet. Should the BBQ eating idiots from “Main Street” continue to dominate policy, this market is going to 8,000 Dow, faster than Bob Steele golden parachutes the fuck out of this bullshit country.

Get ready for deflationary pain.

UPDATE: Looking around the wonderful world of internet blogs, most right wing sites are against the bailout, mainly because they are idiots. Liberals are always down for a little government intervention; so they are worthless. One guy is going against his audience, in support of some bailout fun.

Unfortunately, not everyone understands the ramifications. Again, they are idiots.

[youtube:http://www.youtube.com/watch?v=qXVX2zzHxeg&feature=related 450 300]

Across the board, I blew out of equities today. It doesn’t really matter what the fundamentals or cost basis is; it’s done. I have no desire to play a game of political chicken with moronic corn cob fuckers.

It’s very hard to play the next move. Logic dictates the market will crash through the fucking floor boards, as the best and biggest financial system crumbles into very small pieces of fuckery. However, do not doubt the assholish of Congress and their ability to vote again and win!

Geez, we could be up 1,000 on a new bailout win.

Nonetheless, it makes sense to cut losses here and wait for things to settle down. Or, if you are unable to liquidate, at the minimum, get long some [[SKF]] , [[FXP]] or [[SRS]] .

Personally, this is a very disheartening day. I nailed the credit crisis from day 2 (JakeGint nailed day 1) and have been positioned for such an egregious day, for more than a year—until last week. Fuck, I even changed the header on my blog to indicate my newly minted bullish tone.

Aside from physically abusing people around me, I have accepted my loss, like a NY Met, and will move on to repair damage.

Remember, during times like this it’s important to limit risk. The downside to the indices are still severe. We can see the Dow slip another 2,000 points, easy. The credit markets are insane, as people with money pile into treasuries. If you are out there, gambling like a fucking Atlantic City alcoholic, I commend your endowment.

Unfortunately, for me, Bob Steele cut my balls off with a ginsu knife, with special assistance from the commodity, tech and credit market ape rapers.

NOTE: Commerical Re stocks should continue to slide, as borrowing costs increases. With that in mind, [[SRS]] is a fucking golden parachute.

I’ve been a republican my whole life. However, after the shit they pulled today, I’d rather kick McCain down an idle manhole than cast a vote for his old/dumb ass.

Sure, why bail out those greedy Wall Street folks? We’re better off paying some military contractors 600 billion per year, so that they could rip us off on $100 buzz cuts for Marines and $50 lunches in Iraq.

The lack of leadership in Washington is startling. If the GOP says it was Pelosi’s fault for getting all political and shit, encouraging them to vote “nay”, then they are idiots. Sure, destroy the country. That makes sense.

Damn that Pelosi, though.

In short, they do not understand what’s at stake. They are idiots, with circus clowns for advisers.

It figures that I’d get caught long names, during the biggest meltdown in history. I just didn’t think Congress was that retarded.

In short, prepare for armed revolt, within 5 years. And, be sure to keep ample amounts of food and water in storage.

Oh, as for the stock market:

It’s done. Sell and get short or go to cash. Just book the losses and consider yourself to be unlucky for electing such imbeciles.

NOTE: Fuck Main Street. You will pay for these transgressions.

Fuck you Congress. May your viagra pill cause pulmonary embolisms.

UPDATE: I panic sold a lot of knifing names and bought large blocks of [[SRS]] .

Why are they still debating? If Congress fails to pass the bailout for Wall Street fat cats, the Dow will be down 2,000 points today.

Hey, the GOP doesn’t want to do this communism shit anymore. The way they figure, should the market swan dive to 4,000 Dow, senior citizens will do great in their retirement accounts, since they all own [[SKF]] and [[SRS]] , effectively lightening the burden on the government to support the social security slush fund.

Enough venting.

I am all out of my bank longs. I bulked up on [[SRS]] ; but still hold egregious amount of long positions, like [[ROM]] . It’s stupid and I know it.

However, maybe, just maybe, today will be a washout capitulation day, or not.

In short, I need a breather and will take time to evaluate my next monstrously grotesque move.

This man is a fucking deal maker. Not only does he get to retain his Ag Edwards brokerage arm and Evergreen, he gets $2.1 billion in Citi stock to boot. Wow!

Pay no attention to Friday’s closing market cap of 21 billion. Bob “fucking” Steele is a patriot and a scholar, via slothing around his office and “power brokering” this merger of titans.

For his work at Wachovia Corporation [[WB]] , I am sure he will be graciously compensated to the tune of $150 million.

Why not?

Bob “fucking Steele, baby.

It’s a bank robbery, mind you. Since when does the FDIC actually make money on seizures? Does anyone else find that odd?

Hell, why should I complain? The United Steaks of America is all about creating tightly knitted clubs with secret handshakes. Bob Steele, mind you, does not know the secret handshake. I am sure he tries, whenever he bumps into the CEO’s from GS, MS, BAC or C at the urinal. But, word on the street, he always fucks it up.

People tend to laugh and spit on Bob Steele. I understand he shops at K-Mart for his Christmas trees and The Gap for puffy winter jackets.

What a jackass.

In other news, a colleague of mine thinks the market will close higher today. After all, hell, European markets are down nearly 4.5%. We are American. We do shit ass backwards.

The question I have for you is: why not?

Finally, I am so happy to see commodity stocks eating old fashioned fertilizer, despite being long some. Truly, I would cut off one pinky finger to see Potash Corp./Saskatchewan (USA) [[POT]] file for bankruptcy. I remember the good old days (3 months ago) when I was short POT in size, hoping for death to befall all of their upper management. Good times. Boat drinks.

You can’t win them all.

I always say: “if you can’t win them all, win at least one you stupid fucker.”

UPDATE: Anyone want to bet on whether State Street Corporation [[STT]] or [[FED]] will get an FDIC seizure notice by Friday?

Just last week, I was feeling all invincible and shit, with timely buys and glorious sells. So, with big gains for the year, I decided to press the envelope and push for “retardo gains.” Once again, I have been taught a harsh lesson in reality.

I knew Wachovia Corporation [[WB]] was a piece of shit. Still, I bought 15,000 shares because I thought the market did what I wanted it to do. Big mistake.

I had all of the research on WB that told me they blew ostrich balls, yet I was trying to get cute and scalp a quick trade. Oh Lord, how fucking retarded was that?

It’s the greed factor that corrupts the way people think in this business. Unfortunately, I needed a 6 fig loss to remind me how stupid greed can make a person. Needless to say, from here on, or until I recover some of these losses, trading will be disciplined.

Now, all of a sudden, I find myself saddled with a bunch of bullshit long positions, while the financial system is on the precipice of disaster. How quaint. As you know, I raised capital this morning, via selling my Citigroup Inc. [[C]] and [[UYG]] positions. And, I just sold Synovus Financial Corp. [[SNV]] .

The profits in C and UYG are about 5 times greater than my WB loss; but it still stings. And, ironically, I find myself in the dirtiest of filthiest “coal holes,” via Walter Industries, Inc. [[WLT]] .

Apparently, the fucking Chinese do not produce steel any longer. Therefore, coking coal is no longer imported.

Bottom line: For me, it’s time to regroup and raise cash. This is not the first setback and most definitely not the last.

UPDATE: I am not selling my tech wrecks into this blackhole. The only things I feel comfortable doing is selling banks and buying [[SRS]] for a hedge. Other than that, I am just over here taking hits on Research In Motion Limited (USA) [[RIMM]] , [[ROM]] , [[WLT]], etc.

NOTE: WB was triple A rated. Good job S&P, once again.

Thank you Bob Steele from Wachovia Corporation [[WB]] . Great fucking job running that flotilla into the ground.

UPDATE: I should have known better. This one will go down as my worst trade ever. I just sold every stinking share of my Citigroup Inc. [[C]] and [[UYG]] . I have a very bad taste in my mouth. Fuck the banks and the assholes that work inside of them.

Greed is so good I can almost taste it. It sort of tastes like molten chocolate cake, mixed with raspberry jelly— topped off with lots of powered sugar.

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