The new CNBC rumor that the [[ABK]] deal “hit a snag” is a fucking lie. The cocksucking banks have already committed the capital and will be finalizing the deal, shortly. Over the last two weeks, with the friendly help of Gasparino, the consortium successfully propped up the share prices of both ABK and [[MBI]], through a myriad of leaks.
However, since the news became stale, I believe they disseminated some misinformation today, in order to surprise everyone later. In other words, in order to have a maximum effect on the market, they need the element of surprise.
Now that people are somewhat worried about the deal getting done, once it’s announced, they will be “Santa Claus happy” and run the shares higher. If you look closely, smart money sees through this charade, with ABK‘s shares higher on the day.
Also, big bad Warren Buffett will be on CNBC for 3 hours on Monday.
If you have decent profits on new short positions, it may be wise to pare them down a little, in order to give yourself some capital reserves—should we gap higher on old news.