We Are From The Government And We're Here To Help
Posted by John Carney, Sep 19, 2008, 7:54am
Comments
4
Posted by guest, Sep 19, 2008 8:05AM
Gasbags - looks like a shiteous used car salesman (more than he normally does).
5
Posted by guest, Sep 19, 2008 8:06AM
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?
6
Posted by guest, Sep 19, 2008 8:09AM
#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.
7
Posted by guest, Sep 19, 2008 8:10AM
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.
8
Posted by Seaman Bodine, Sep 19, 2008 8:10AM
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, ...
9
Posted by guest, Sep 19, 2008 8:12AM
Carney, good luck!! Solid work pays off and you more than earned it last weekend.
10
Posted by Investorcluzo, Sep 19, 2008 8:13AM
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).
11
Posted by guest, Sep 19, 2008 8:20AM
Carney, you will be missed.
But don't let the door hit you on the way out!
13
Posted by guest, Sep 19, 2008 8:26AM
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?
14
Posted by Investorcluzo, Sep 19, 2008 8:27AM
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...
16
Posted by guest, Sep 19, 2008 8:39AM
Good Bye Carney.
I hope your new portal venture will go live soon.
Till then, Take care
17
Posted by guest, Sep 19, 2008 8:42AM
Anyone read the FT article about McCain's comments? at no point did they refer to him as 'loopy' or 'insane' - dissapointing
18
Posted by guest, Sep 19, 2008 8:44AM
Cluzo...see Bess' people moving post. Carney is flying the coup...hopefully he will show his face more than Dickie F
19
Posted by guest, Sep 19, 2008 8:44AM
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?
21
Posted by FUNdamental, Sep 19, 2008 8:47AM
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!!
24
Posted by Investorcluzo, Sep 19, 2008 8:52AM
@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.
25
Posted by guest, Sep 19, 2008 8:55AM
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???
26
Posted by guest, Sep 19, 2008 8:56AM
you think this is bad, you better pray nobama and the demonazis don't control, that will be the end of capitalism...
27
Posted by guest, Sep 19, 2008 8:58AM
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.
28
Posted by guest, Sep 19, 2008 8:58AM
*****US TREASURY TO REPAIR TOM BRADY'S KNEE, TO PLAY SUNDAY*****
29
Posted by guest, Sep 19, 2008 8:58AM
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
30
Posted by guest, Sep 19, 2008 8:59AM
The Fed also just confirmed that Elvis is alive. They also just ended world hunger...
31
Posted by guest, Sep 19, 2008 9:00AM
#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.
34
Posted by guest, Sep 19, 2008 9:07AM
In Rand McNally, people wear hats on their feet and hamburgers eat people!
35
Posted by guest, Sep 19, 2008 9:07AM
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.
36
Posted by Henry Ryecroft, Sep 19, 2008 9:10AM
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
37
Posted by guest, Sep 19, 2008 9:11AM
Should I buy 500 Jan 2010 at $30.00 strike price WWDAF.X
Morgan Stanley Calls at $5.00???
38
Posted by guest, Sep 19, 2008 9:12AM
@35 Call bullshit if you like, but maybe we should investigate first, if that is at all possible.
39
Posted by Ben_H, Sep 19, 2008 9:13AM
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.
40
Posted by guest, Sep 19, 2008 9:16AM
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.
42
Posted by RAW DOG, Sep 19, 2008 9:19AM
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.
44
Posted by guest, Sep 19, 2008 9:21AM
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????
45
Posted by guest, Sep 19, 2008 9:25AM
@42
riddins? really?
carney knows more about finance than you do about the english language apparently
49
Posted by guest, Sep 19, 2008 9:39AM
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...
50
Posted by guest, Sep 19, 2008 9:40AM
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.
51
Posted by guest, Sep 19, 2008 9:44AM
Wamu and Morgan Stanley should have been allowed to fail. This is bullshit to main street and the us taxpayer.
52
Posted by guest, Sep 19, 2008 9:44AM
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.
53
Posted by guest, Sep 19, 2008 9:48AM
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.
54
Posted by guest, Sep 19, 2008 9:50AM
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.
55
Posted by guest, Sep 19, 2008 9:50AM
#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.
56
Posted by guest, Sep 19, 2008 10:01AM
@35 - know the name of the MS report or analyst that published the decline in short trading?
58
Posted by guest, Sep 19, 2008 10:10AM
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...
59
Posted by guest, Sep 19, 2008 10:14AM
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...
62
Posted by guest, Sep 19, 2008 10:35AM
welcome to the USSA, now we know why there's so much red in the flag, comrades
More Favorite Reads
Sep 17, 2008, 9:16am
A Long-Expected Takeover
We cannot say we're shocked that the Federal Reserve and...
More »Sep 09, 2008, 3:20pm
Lehman Brothers Wants To Sell Half Of Neuberger Berman
The deal under consideration at Lehman Brothers is a sale...
More »
Posted by guest, Sep 19, 2008 7:58AM
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