Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Random Thoughts: Viva La'Merica!

By

More steps towards market socialization.

PrintPRINT

Editor's Note: This content was posted in real-time on our premium Buzz & Banter and is being shared here for the benefit of the Minyanville community. See also The Upside of Anger and It's a Market of Money, Not a Money Market.


Viva La'Mercia! - 9:12 am

  • We're gonna have French Toast for breakfast, French Fries for lunch and French Poodles for dinner in honor of our most recent socialist step. This is a historic juncture in the history of the world, Minyans, as we edge through interesting times.

  • I spoke about this on CNBC in 2003--yes, I had more hair and less chin--and felt like I was screaming about a monster nobody yet saw. Now granted, I was five years early and there were a LOT of opportunities between then and now but "socialism," "stagflation" and the perils of Fannie Mae (FNM) were officially flagged.

  • Why do I highlight this? Simple--the issues existed five years ago and have cumulatively built since, percolating under the system, growing in magnitude, magnifying in consequence. That's why there isn't a single, simple solution.

  • Time and price, Minyans, time and price.

  • Do I think the government should have let AIG (AIG) fail? No, I don't. It would have created a cataclysmic vacuum that would have sucked General Electric (GE), JP Morgan (JPM), Citigroup (C) and anyone else tied to the derivative ball and chain into the abyss.

  • The "margin for error" from a solution standpoint is thinning. I mean, if the government is cherry picking its portfolio, their perceived credibility will come into question.

  • That's the risk--shifting social mood, which shapes risk appetite, coupled with derivatives, overwhelmed with debt issuance into a deleveraging process as home values stagnate, unemployment grows and geopolitical tensions mount.

  • My money is split into two buckets. The first is a trading account, where I'm "hitting it to quit it" both ways, and my long-term, which is 100% cash and backed by t-bills (this is important).

  • I'll be back Minyans--head up, eyes open, thoughts positive.


This desperation, dislocation, separation, condemnation, revelation, in temptaion, isolation, desolation. Let it go... - 9:36 am

Get ready for a bevy of announcements from the Fed, Treasury and SEC, including the implementation of the "naked short selling uptick rule" across the entire equity spectrum.

They're desperate--and we've been talking about them only having so many bullets left in the gun (and the last one pointed inward)--but make no mistake, the risk is two-sided.

Minyans, this is what we've trained for. This is what we expected. While scary, it is a necessary, and dare I say positive, step towards the eventual recovery.

And yes, I'll likely be years early with that view too.

Good luck.

R.P.


Want top traders to sit at your desk and share their insight and ideas?
Minyanville's Buzz & Banter - 14 day FREE trial

< Previous
  • 1
Next >
No positions in stocks mentioned.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE