Friday, November 02, 2007


Quick Thoughts on the Banks

Although I feel they are due for a bounce, especially after Chuck gets shitcanned, they're still long term sells.

Over the next month or two, do not be surprised to see the regulators investigating these fuckers, giving them serious headline risk.

If you must own the group, keep a hedge or two on. For example: long MER or MS, short MTG or RDN.


Woody, blogging drives me crazy, plus I could not defend the legal assault by Fly. What a fuckng asshole! Very intense and costly it is to defend these sorts of trademark lawsuits.

Further... 9.9 out of 10 people have no idea how bad this is going to turn out. People have laughed and poked fun at my rants over the past few years regarding otc derivatives, unfortunately there is not going to be much to laugh about unless you own gold bullion and unleveraged gold shares like KGC(check out that chart..oh like that).. Off to bury more bullion in dirt ditches in the Sierras somewhere you will never find.
Who wants to sit in Prince's seat and have the liability at year end, per Sarbanes Oxley, of attesting to the veracity of a $2 trillion balance sheet loaded with mortgage backed securities for which there's no two sided market? If someone is brave enough to accept the challenge prior to year end, I'd expect the new guy will limit his liability by taking huge impairments at year end.

MER is going to face similar challenges putting a CEO in place prior to year end.
Headline risk....good way to describe it.

CapGame is probably right when he thinks banks may see a 40% mark up in 12 months.

I would even feel more comfortable saying a double in two to three years.

But there is still more bloodletting that has to happen before I'd buy.

I've taking up gold panning as my new hobby. A friend of mine has 4 mining claims totaling 80 acres of government land that we use for recreation, hunting, and of course, "mining".

We will eventually find your bullion with our enhanced metal detectors.
Not a chance.. I am up high in desolation.. 9000 ft high to be exact.. Golden Trout country. I get Iphone reception up here and blog from inside the clouds. Very God like.
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