Friday, September 12, 2008

You should support BAILOUTS!

Hard as it maybe to believe, the Federal Reserve is most likely on the side of the little guys and short sellers.

They don't need to rob or fade you, no.

"Federal Reserve is in the business of Moral Hazard" says one of the Fed president.

What they do is sell their "TALKS" and encourage the BIG guys ($1B+ investors) to put in money in the market so the economy runs.

Now, as a bear you MUST cherish this. There is NO place in the market in which upon putting money in CAN YOU expect to see it EVER AGAIN.

In fact, the stampede out will be legendary as this GDII of ours unfolds.

The fed is YOUR friend, as Ben has been a good friend of mine as we shorted DSL together back in the days.

They will as, the SHAMANS of the stone ages, lead the elephants to the narrow valleys, where you, my dearest CROMAGNONs, will savagely murder the beasts and enjoy their bountiful, juicy MAMMOTH burger.

Have a good weekend.


stockfarmer said...

The damn mammoth is tricky and nimble. My SKF has been losing value due to annal leakage. Should have shorted the ultra long.

It seems selected financials are being killed and money is flowing into the "good" ones.

I wonder how much longer the "good ones" can put on a show and hide the crap.

pRhyME said...

nice take on the fed.

as for SKF, shorted half my account at $136, and will reload after the lehman bailout hopefully when it gets under $110 before the big BOOM

MTGSPY said...

This is not even a "curious" juncture in the nations history. It looks like collapse is a done deal. It's just what format it's gonna take if it's gonna include all out social unrest or some such I don't know. But yes generally in the "Very Bad" category in all outcome possibilities.

MTGSPY said...

More evidence that the Fed / Govt bailout is a way to take money back from pigmen (although in this case the net took in a few shrimps as well)

Small Fannie, Freddie Holders
Take Issue With Washington
September 12, 2008

Adam Freid, a general contractor in Thousand Oaks, Calif., says he was through day-trading stocks and instead looking for a promising long-term investment when he read some of Henry Paulson's recent comments about Fannie Mae and Freddie Mac.

The Treasury secretary's assurances that the government-sponsored mortgage companies would raise more capital gave Mr. Freid the impression that a government takeover wouldn't be necessary. So he bought approximately 25,000 Freddie Mac common shares last week at about $5 each. "After reading that, I said, 'I'm going to buy this stock. It's been beaten up, but it will go up over time,' " Mr. Freid says.