Don’t Let The Great Depression, Part II, Stop You

Look, there is very little to discuss. The markets are insanely gay. Many of you are suffering severe losses.

I rarely make big mistakes. I made some pretty sizable errors getting long a variety of commodity stocks, thinking I was God to the masses of stock idiots. The lesson learned is always the same.

However, this is why I am different than most of you faggots (that was brazen, wasn’t it?).

Over the last few days, I accepted my commodity defeat, like a man, and took the proceeds to buy more [[SRS]] , [[EEV]] and short a variety of auto plays, including Navistar International Corporation [[NAV]] , Cummins Inc. [[CMI]] , amongst others. As a result, I enjoyed big dicked gains today, much to your chagrin.

The trannies are so done, kudos to Carter Worth for that call yesterday. Short all the rails, including Burlington Northern Santa Fe Corporation [[BNI]] , Union Pacific Corporation [[UNP]] and FedEx Corporation [[FDX]] .

To sum things up, I took losses today in some names, including [[ROM]] , Research In Motion Limited (USA) [[RIMM]] and [[UYM]] .

As of now, I still have 25% long exposure, with the rest leaning on you bullish fuckers, via [[REW]] , [[TWM]] , [[SKF]] , [[SRS]] and [[DUG]] .

Jim “bowtie” Rogers is getting rolled on today, as everything from metal to corn gets tossed into a gasoline fueled bonfire.

The carnage is severe, following the shitty eps report from The Mosaic Company [[MOS]] .

In short, deflation has gripped hold of bullshit commodity stocks and killed them. For awhile, the faux inflationary effects of oil/gas/corn inflated commodity stocks, making people fear for their rice supplies. However, thanks to the kickass worldwide banking failure, farmers no longer have to worry about Monsanto Company [[MON]] ripping them off.

However, there is a severe price to pay for this bubble popping, such as massive deduction of tax revenue for the U.S. government. Hell, the oil industry was the only sector left standing. Now that they’re fucked, expect to see even further municipal shortfalls, causing more infrastructure projects to be canceled.

As for the farmers: those idiots will be participating in Farmaid concerts, within 2 years. The credit crisis is killing everything. God willing, the GOP will shoot down the bailout (spiteful Fly wants everyone to be punished for their ignorance), effectively causing unemployment to spike north of 10%.

Already, thanks to the The Boeing Company [[BA]] strike and auto meltdown, 4th quarter GDP will come in at -1.5%. Write it down.

Look, if General Electric Company [[GE]] and Goldman Sachs Group, Inc. [[GS]] has to pay out 10% yields for a Buffett golden seal, what will General Motors Corporation [[GM]] or Citigroup Inc. [[C]] have to pay?

Look out below.

Finally, the carnage in ag plays is spectacular, which includes: CF Industries Holdings, Inc. [[CF]] , Potash Corp./Saskatchewan (USA) [[POT]] , The Mosaic Company [[MOS]] , Monsanto Company [[MON]] , Lindsay Corporation [[LNN]] , Valmont Industries, Inc. [[VMI]] and Agrium Inc. (USA) [[AGU]] . In addition, all basic resource stocks and mineral are being ape raped. I cannot find it in me to buy this dip, after get “coal holed” in Walter Industries, Inc. [[WLT]] .

The fucking farmers are screwed.

NOTE: [[SMN]] is north of $60.

NOTE II: This commodity sell off further emboldens my bearish position on Vulcan Materials Company [[VMC]] , Eagle Materials, Inc. [[EXP]] , Martin Marietta Materials, Inc. [[MLM]] , Texas Industries, Inc. [[TXI]] and Caterpillar Inc. [[CAT]]

Poof. Your bullshit bailout rally is gone.

-Merlin

When you think “auto,” I bet you only conjure up thoughts of bullshit General Motors Corporation [[GM]] or Ford Motor Company [[F]] cars. But, there is so much more to bet against.

With the credit markets seized up, the auto industry is in crisis. Not only do American cars suck, but its potential buyers are not able to get loans.

Mike Jackson, CEO of AutoNation, Inc. [[AN]] , said only 80% of prime borrowers are getting loan approval, while a mere 20% of subprime idiots get the honor and privilege of owning a new or used car.

People, we are going back to the horse and buggy.

Short candidates for the credit aspect of the auto industry include: AmeriCredit Corp. [[ACF]] , CompuCredit Corporation [[CCRT]] and [[CACC]] .

Parts and dealers include: AutoZone, Inc. [[AZO]] , AutoNation, Inc. [[AN]] , Advance Auto Parts, Inc. [[AAP]] , CarMax, Inc [[KMX]] , Penske Automotive Group, Inc. [[PAG]] , Group 1 Automotive, Inc. [[GPI]] , Sonic Automotive, Inc. [[SAH]] , Asbury Automotive Group, Inc. [[ABG]] , [[CRMT]] , Copart, Inc. [[CPRT]] , Cummins Inc. [[CMI]] , BorgWarner Inc. [[BWA]] , Tenneco Inc. [[TEN]] and [[LAD]] .

Auto makers include: General Motors Corporation [[GM]] , Ford Motor Company [[F]] , Toyota Motor Corporation (ADR) [[TM]] , Daimler AG (USA) [[DAI]] , [[NSANY]] , PACCAR Inc [[PCAR]] , Navistar International Corporation [[NAV]] , WABCO Holdings Inc. [[WBC]] , Oshkosh Corporation [[OSK]] and [[VOLVY]] .

Look, even the Japanese auto industry is saddled with 25% decreases in unit sales. Take a basket of bullshit auto stocks and short them to zero.

In other news, insurance stocks are in dire straights. Any company with credit exposure is getting blown out, including MetLife, Inc. [[MET]] , Willis Group Holdings Limited [[WSH]] , XL Capital Ltd. [[XL]] , Financial Federal Corporation [[FIF]] and World Acceptance Corp. [[WRLD]] .

There is just so much to bet against.

With my money, I took some bearish positions on a variety of auto names and, as always, increased my [[SRS]] holdings.

Everyone I speak to feels as if we are living through special times. We are making history, in a very bad way, mind you. It’s not like “The Fly” to get all sentimental and shit; but I kind of miss the days of egregious excess, when people just ATM’d their houses and went long QUALCOMM, Inc. [[QCOM]] for shits and giggles.

Gone are the days of the cool new Motorola phone and it’s flamboyantly gay CEO.

Gone are the days when assholes went to Best Buy to purchase the new Garmin Ltd. [[GRMN]] device or better yet a TomTom.

Gone are the days when it was cool to buy Sirius Satellite Radio Inc. [[SIRI]] because Howard Stern was an employee. Or, better yet, buy XMSR, because their satellite shit was better.

Gone are the days of homebuilders acting like dot coms and dot coms accepting egregiously high take over bids (YHOO).

Gone are the days when soda stocks were cool: [[JSDA]] , Hansen Natural Corporation [[HANS]] , Cott Corporation (USA) [[COT]] , [[REED]] .

Gone are the days of stupid post 9/11 security stocks and asinine bomb detection companies.

Gone are the days of Apple Inc. [[AAPL]] and Research In Motion Limited (USA) [[RIMM]] dominating Jim Cramer’s Mad Money program and people getting all giddy over the iPod.

Gone are the days of storage plays like VMware, Inc. [[VMW]] or NetApp Inc. [[NTAP]] . All we do now is store warehouses full with worthless CDO’s.

Gone are the days of people in India eating 1 1/2 meals per day, effectively making Ag stocks skyrocket. Now, those fuckers are back to starving again.

Gone are the days when T. Boone Pickens was a successful money manager and oil was going to $1,000.

Gone are the days of absurd pricing power for the mineral and basic resource companies. Now they just suck.

Gone are the days of greedy private equity ballers and takeover specialists—buying companies for $100 billion out of thin air.

Gone are the days of endless Chinese industrialization. More importantly, gone is the notion that Chinese stocks can go up forever because they are surpassing the U.S. as King Cobra.

Gone are the days of cool euro’s. Now, the euro is some sort of bullshit 3rd world currency.

Gone are the days of lunatic seminar stocks like iMERGENT, Inc. [[iiG]] and pyramid plays, like USANA Health Sciences, Inc. [[USNA]] .

Gone are the days of making money off fat fuckers, via NutriSystem Inc. [[NTRI]] , Buffalo Wild Wings [[BWLD]] , Panera Bread Company [[PNRA]] and other restaurant names.

Gone are the days of powerful Wall Street brokerage firms, who could move a stock 10% on a morning upgrade. Now all we have is third tier bucket shops, like Oppenheimer Holdings Inc. (USA) [[OPY]] and Jefferies Group, Inc. [[JEF]] left.

Gone are the days of Mozilo and his kick ass tan. Add to that, his entire mortgage industry.

Gone are the days of BRIC.

Gone are the days when Carlos Slim from Mexico was the richest man in the world because his grotesque cellphone stock America Movil S.A.B de C.V. (ADR) [[AMX]] went up everyday.

Gone are the days of Google Inc. [[GOOG]] being cool. Now they’re just a bunch of dorks with a lot of free shit to give away.

Gone are the days of yoga and organic being “in.” Stocks like [[LULU]] and Whole Foods Market, Inc. [[WFMI]] can lick my dogs balls.

Gone are the days of “Jamba Juice” being a semi-cool place to buy a beverage.

Gone are the days of $200 jeans and $300 sunglasses, at least for Main Street. Now, all Main Street can afford is a pair of “Crocklers” from their local Walmart.

Feel free to add your own.

[youtube:http://www.youtube.com/watch?v=5N7C3B6jy-o 450 300]

I’ve canceled my plans to vacation in the middle of nowhere, in order to witness the great fuck up of 2008. It’s coming. I can sense it.

Hey, anyone else notice how done our auto industry is? I’d buy Ford Motor Company [[F]] and General Motors Corporation [[GM]] , only if I was playing with counterfeit bills.

Gold is just plain weird. It’s hard to trust the price, when the U.S. government owns more than 8,000 tonnes [sic]. Nonetheless, I have it plugged into my asset allocation models at 4%.

Over the last few days, I took losses in Freeport-McMoRan Copper & Gold Inc. [[FCX]] , Walter Industries, Inc. [[WLT]] and a variety of commodity fuck ups. As you know, I took gains in banks and now look forward to the next chapter of my investment life.

I’m a big believer in the end of the world, at least temporarily. So, there really is no need to be long commercial RE. Hell, the way I figure, Vornado Realty Trust [[VNO]] is about to get ape raped, amidst the elimination of NYC’s financial industry.

I guess some longs makes sense here too, ahead of the bailout. But, the smartest way to play the trickery is to be hedged. Never let the same event fuck you twice, is what “Grandpa Fly” used to say. God bless his soul and his fire arms.

In closing, you’re all assholes. I know that was entirely uncalled for; but I could careless. “The Fly” has lots of things to do, ahead of tomorrow’s funfouse of financial fuckery, so buzz off.

Hey, one last thing: is anyone else scratching their heads over that ridiculous capital raise, via Buffett, by General Electric Company [[GE]]? That smells very fishy.

Okay, time to go. I’ll be selling the rest of my longs tomorrow.

The GOP will not support the bailout. They will look even worse to their constituents if they support it on Thursday, after shooting it down on Monday. Instead of standing up for what they believe in, they will be viewed as folding to ‘fat cat’ pressure.

With this in mind, there is NO WAY I want to be net long, following Monday’s train wreck.

Instead, I want to be long large blocks of [[SRS]] and [[EEV]] , while waiting for an optimal entry point into [[SKF]] .

Should that fucker print $90, get long in a very egregious way.

As you can tell, I’ve lost confidence in the bull story. There was a shot to goose step this market higher. However, at this point, everything is very anti-climatic. Sell the rips, buy the dips.

NYC is set to lose another 40,000 jobs, thanks to the financial meltdown. As sure as I am sitting here, SRS will print $100 by Halloween.

There is no way on God’s green earth commercial RE companies will keep their share prices intact. Quite honestly, as opposed to outright lying, it makes me sick to see Vornado Realty Trust [[VNO]] , SL Green Realty Corp. [[SLG]] , Simon Property Group, Inc [[SPG]] and Boston Properties, Inc. [[BXP]] so rich in value.

Their market caps deserve to be sliced in half, as their tenants file for bankruptcy and their lines of credit dry up.

As always, getting long [[SRS]] , sub $85, is a great idea.

Oil is entirely done. I really have no interest in trying to bottom fish commodities anymore. In retrospect, I was wrong. Time to move on.

The banks are doing great, based upon news of nothing. And, tech is getting punched in the scrotum by Zeus.

Right now, I am too busy to even think straight. I’ll get back to you fuckers later, with an idea or two.

NOTE: His middle name really is King. You-can’t-make-this-stuff-up.