Friday, February 20, 2009

Obama Sir: While retreating, the best course of action is ...

Leaving behind a few understrength companies to set up ambushes and sacrificed themselves for the fatherland.

That means you nationalize the banks this VERY minute. This will leave nobody LEFT TO DEFAULT. You don't get any worse than it already is. Get $0 for the bank equity and jam the losses to the taxpayers, if that is needed (and I believe that will be somewhat huge).

Then the market stabilize, overall it will go up a bit but then it stops crashing and number crunchers can go out there and figure out the fair values of everything. Commodities will be up, basic industry will be up, homebuilders will be flat to down, banks will be zero, autos will be zero.

It's the only fool proof idea I got, and my fingers started numbing down from the cold down here sir.


D said...

As impressive as the % decline in financials has been lately, they still aren't pricing in imminent $0. You were so much more bearish in October my friend, what gives?

MTGSPY said...

I want to be a nicer bear. A bear who cares. Change you can bear.

just kidding, i am still short and daytrading hedges whenever it gets too hot.

D said...


PS - Intel is that Sao Paulo is a dangerous city still and Mendoza Argentina is safe. Mendoza also happens to be Argentina's wine country, 800k metro population, home to a university and has beautiful weather/women.

Still leaning towards CR though.