You think I like shorting stocks? There was a time, not too long ago, when I’d spit on people for being bearish. This is America. I love it. There is nothing like it.
However, after 9/11, everything changed. With the country distracted and Washington panicked over the economy, Wall Street took advantage and misbehaved, sort of like when a child does something sneaky when his parents are not watching.
While brave men traveled overseas to fight for the honor of our nation, losers at home loosened credit and housing regulations, then opened floodgates of capital, in order to reinflate the ailing economy. They were very brazen, indeed.
Homes for the rich, middle class and even the poor were permissible, under any circumstances. Systems in place to protect prospective buyers, that worked fine for generations, were scrapped and replaced with zero down payment/zero document/exotic loan packages. Companies like CountryWide, Wamu, Lehman, Indymac and Bear made a fortune for themselves, enticing the little guy to grab a piece of Americana. The deal guys made so much money, the high end art galleries in NYC were running low on supply.
All of this was fueled and encouraged by the government and the Federal Reserve.
Fast forward 7 years, we see the damage of a society that acted irresponsible.
We, as a nation, dishonored the deaths of those who perished on 9/11— and those who died in combat following. Instead of building a better country, one that valued the important things in life; we got greedy and literally ruined the financial system—all in just 7 short years.
Think about it.
Now we have a new crisis, a financial one. This one cannot be rebuilt by a few dozen construction companies. In a sense, one could argue that we have caused more damage to this country, following 9/11, than the actual terrorist attack itself.
I am sure the bastards who flew planes into our buildings are pleased.
Yet, here we are, many years later, with no leadership and no good ideas. It’s just more of the same.
As for the markets:
The Lehman Brothers Holdings Inc. [[LEH]] story is not going to end well. I sense they are the sacrificial lamb for the Treasury. They will justify their Fannie/Freddie crime by saying: “look, we let Lehman fail.” The ripple effects will be staggering.
Also, the Washington Mutual, Inc. [[WM]] situation is far more serious. Once they default, the FDIC will have to pony up some serious capital to insure depositors.
Finally, I like short Legg Mason, Inc. [[LM]] , PacWest Bancorp [[PACW]] and Comerica Incorporated [[CMA]] here, in addition to may others. And, of course, [[SKF]] and [[SRS]] are still very, very cheap.
NOTE: So much for Merrill Lynch & Co., Inc. [[MER]] holding that deal price, right? Morons.Comments »