Just when I was getting bored of being a bear, the cup fuckers who operate this place (the market) had to go run up the DOW 200 points—for no good reason. While it’s true, the Buffett deal will protect the secondary muni market; it does nothing for mortgages—which is the real problem.
If anything, the proposed Buffett deal will make certain the insolvency of both [[MBI]] and [[ABK]] comes to fruition.
Let’s make this perfectly clear:
No one gives a fuck about the dead beat mortgage guy. The big fuss is due to the muni market. Once that is off the sheets of the monolines, the rating agencies will rip the heads off of the monoline bulls, take their heads—and slam dunk them while exclaiming “BOOMCHAKALAKA.”
The market was due for a rally. In hindsight, the writing was all over the filthy walls, with tech showing its hand early. However, we’ve already run up a good 250 points, in two days. As a result, I will suspend my urge to go long and wait for a short set up.
I’m a bit tentative because the market usually rallies from mid February until mid March, even in bear markets. However, my thinking, the market already had a 1,000 point rally from the lows. Therefore, there is a good chance the mid-late February run may be today, if you get my drift.