Friday, November 02, 2007
Quick Thoughts on the Banks
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.
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 yes..you like that).. Off to bury more bullion in dirt ditches in the Sierras somewhere you will never find.
MER is going to face similar challenges putting a CEO in place prior to year end.
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.
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