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as i said 24 hours ago – stop the naked shorts and you stop this bullshit
hedges lost trillions and will lose more – tough shit assholes, tough shit
dont f*ck with America
You don’t work here any more, Carney.
Primo. You are going out on top. Good luck to you, JC.
Gasbags – looks like a shiteous used car salesman (more than he normally does).
Hm…a couple of observations:
1) It would have been a lot cheaper to kick in a few billion and marry off Lehman.
2) How capricious is it that Lehman and AIG shareholders got completely wiped out but we don’t see moral hazard in rescuing every other bank?
3) All of Wall St told us that guy from overstock.com was crazy when he complained about naked short selling. How is this situation different?
#1 – I’m not at all a fan of naked shorting – and the banks themselves were the biggest abusers over the years BTW and the whole reason that little loophole didn’t get closed despite many complaints that fell on deaf ears. There are more than a few people out there who consider this poetic justice having it turned on them.
That said – the real issue isn’t the shorts, it’s that the banks’ balance sheets are shit and overleveraged with deteriorating assets. This is like saying it was the wave’s fault you drowned despite not knowing how to swim and jumping into an ocean during a pounding storm swell.
Failure in risk management and executive and board members’ stewardship for the shareholders is the issue. The shorting effectively just shines a spotline on them and says “we think you are full of shit.” And management has done nothing to refute that claim besides run scapegoating, God forbid they provide real transparency (they don’t for a reason)…and when someone does get a look at the books, low and behold the emperor really did have no clothes.
Carney, best of luck in your new endeavour. The new editorial team will be hard-pressed to top your rice reports from Thai opium dens.
it would be better if it read:
US Treasury going to cover all charges at Spellbound Massage for anyone who can prove they work for the following: LEH, MER, …
Carney, good luck!! Solid work pays off and you more than earned it last weekend.
seriously, brown suit and purple on purple tie/shirt combo? who dresses that guy?
in a world where the market can stay irrational longer than you can stay liquid, real analysis is no longer useful…time to walk away from the table for a minute and let the dust stettle (I’m putting the death watch on hold).
Carney, you will be missed.
But don’t let the door hit you on the way out!
ciao CArney – see you next week on your new endeavour?
What’s the going rate for MBS debt? 22 cents? Are we talking about $500 billion in distressed debt? If the gov transfers all of it for nil value, the taxpayer makes $11 billion immediately, no?
whoa! wtf? did I miss it (was really busy yesterday), where is carney off to? why were there no going away drinks, c’mon now…
This is the mother of all short covering rallies
Good Bye Carney.
I hope your new portal venture will go live soon.
Till then, Take care
Anyone read the FT article about McCain’s comments? at no point did they refer to him as ‘loopy’ or ‘insane’ – dissapointing
Cluzo…see Bess’ people moving post. Carney is flying the coup…hopefully he will show his face more than Dickie F
How Do You Trade The Bailout?
Posted by John Carney, Sep 19, 2008, 8:17am
No shorting. RTC to buy mortgage assets at inflated prices. Money market funds get FDIC treatment. Liquidity injections from the Fed.
So what’s your trading strategy? We notice you can still short the XLF, which probably means a lot of financial stock hedging will go into shorting the XLF. That should result in the XLF trading at a discount to the underlying stocks, which are now unshortable. So go long the XLF and sell any financials you still own, and wait for the shorting ban to end and bring these two back in line. That’s our idea. What’s yours?
@6 the swimming analogy is the best by far
hey cluz, agreed on the time to let the dust settle. Who knowns when bofa going to share how that countrywide purchase is going, jpm letting us know what’s up with their bear integration or we get an update from spitzer on his syphilis
And yeah carney is a dead man walking around here, he’s off to write for a more mature blog. I vote Meredith Whitney for the new leader!!
that “more mature” comment was pretty dick
@19 Long Beard Trimmers and Head Wax
@carney – best of luck, although I take offense on the “more mature” bit. great to have met you at spitzer’s and hope we cross paths again – who know’s I may even take a glance at that “mature” blog.
@fun – this is crazy, I sold my wb puts when the news came out about mack running scared, was up 250%, but there was more vig to be had.
@19 – check out the skf and uyg. xlf is already widely used as a hedge.
This is fucking bullshit, why the hell is the government bailing out wall street and the mortgage banks, If I opened a donut shop and lost a lot of money would they bail me out???
you think this is bad, you better pray nobama and the demonazis don’t control, that will be the end of capitalism…
Any one who blames this only on short sellers has never sat on a real trading desk.
All of our stock is not worth the same amount at the same time. When real long only accounts get the call from fund accounting and start selling… watch out.
*****US TREASURY TO REPAIR TOM BRADY’S KNEE, TO PLAY SUNDAY*****
800 point swing on short covering BUT SURELY SHORTS HAVE NO IMPACT….
you fuctards are either stupid or lying
paulson ROCKSs – well done HP, WELL DONE
don’t f*ck with America bitches
The Fed also just confirmed that Elvis is alive. They also just ended world hunger…
#25, because no one will buy donuts if we melt this thing and 50% of all donut shops disappear despite their owners being responsible and having had decent profitability before that point. A lot more at stake than donuts too but it works for the analogy. You feel me.
Elvis has left the (Lehman) building.
@28…i believe.
In Rand McNally, people wear hats on their feet and hamburgers eat people!
Carney i know it is your last day but what we could use is a piece on whether shorting financial stocks actually increased in the last 10 days.
MS put out a report this morning (ironic i know) that the shorting in financials was actually off 20% in the last week. And from what i have been hearing from buddies on other trading desks the pressure in finanicals came from long sellers, liquidating based on fundamentals.
This idea of financial terrorism is getting MSM play and i want someone to call bullshit on this whole idea.
You know what, Stuart? I know it’s the shorter sellers. They’re in it with the terrorists. They’re building landing strips for gay Martians.
http://www.youtube.com/watch?v=Giu-_umqjeE
Should I buy 500 Jan 2010 at $30.00 strike price WWDAF.X
Morgan Stanley Calls at $5.00???
@35 Call bullshit if you like, but maybe we should investigate first, if that is at all possible.
We looked at short volume and for financial stocks we looked at short volume as %age of total volume was below normal in last week.
If people don’t use this manufactured rally to sell whatever crap they are long, then they are complete idiots and deserve a donkey punch.
DONKEY PUNCH…phrase of the day!
John Carney – Good riddins. You were never funny and you know as much about finance as one does about the price of eggs in China.
@ 34, great episode…
Wow the government bailout will cost the taxpayers over 500 BILLION dollars at MINIMUM, you guys think it’s worth it, just to save some bankers????
@42
riddins? really?
carney knows more about finance than you do about the english language apparently
Too gone, didn’t read.
Too gone, didn’t read.
John,
Where are you going?
instead of band aiding wallstreet.. we should start from the root of the problem.. which is the homeowners..
y not take that 500 billion bailout money projected to spend on wallstreet and help the homeowner a bit.. once the payment starts to flow again into these mbs.. slowly the security will be able to write up its value. boom, no more loses from these toxic wastes. trickle down effect seems to be logical…
Question for all.
Is “financial terroism” the equivalent of “weapons of mass destruction”?
Something the government makes up to justify harmful action which will have severe unintended consequences.
For anyone that cares as of end of Sept 1, 2008 – the top 4 on the most shorted list were FORD, WM, WB, GM. No LEH, no AIG, no MER…
The biggest name on the naked short list SEARS.
Can we please start to question the unintended consequences of what the hell has gone on this week. I am not for the whole financial system imploding but this wholesale bailout is scarey.
Wamu and Morgan Stanley should have been allowed to fail. This is bullshit to main street and the us taxpayer.
Enforce the naked shorts rule, good. Okay now let’s get rid of mark-to-market and everything will get back to semi-normal.
#49 you are delusional. 90% of the “subprime” borrowers obtained their loans through sheer fraud.
That would be like feeding a corpse.
So John, we’re like wild kinky chick you date all through college. Now you’re ready to grow up so you thow us under the bus, and hook up with some uptight respectable chick who you want to be the mother of your children.
Now I know how she felt.
It’s like playing hold-em against an amature. You lose to a 7-2 because your opponent doesn’t know what he’s doing.
#52
that’s bullshit the banks were lending out No Income No Asset verification loans
at high interest rates. All you needed was a pulse and social security number to get a mortgage.
It’s basically the banks faults for lowering their lending standards.
@35 – know the name of the MS report or analyst that published the decline in short trading?
@55
ure basically a moron
Not to nitpick, but shouldn’t the headlines in that picture read “ensure”, not “insure”. Unless the government is writing insurance policies on happiness, then I stand corrected…
Not to nitpick, but shouldn’t the headlines in that picture read “ensure”, not “insure”. Unless the government is writing insurance policies on happiness, then I stand corrected…
58 youre not nitpicking, youre retarded.
58 is right, their fucking homophones, moron.
welcome to the USSA, now we know why there’s so much red in the flag, comrades
All the best Carney. Your posts were insightful and helpful. Thx mate.
JC- You should bow out on this headline. Great stuff. Thanks for all your commentary.
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