Patrick
Full time employment: Posting here.
GM, which is buried in debt, and Yahoo, which will drop when the Microsoft deal falls through.
i'll probably buy QID monday or sometime next week if the nasdaq breaks 2250. i think we are finally on our way to the 2000 level
I've been long QID for a few weeks now. So far I'm about even, but I'm poised for the big drop.
I'm short (via puts) on WM and CIT.
I guess it depends on where you got in. I'd be careful, the government seems to want to do whatever necessary to bail out these companies.
Exactly.
Final Jeopardy Question
Name a Central banker, Fed Chairmen, or Tresaury Secretary who hasn't worked for a large bank or financial firm for a least a decade.
Answer Who is No one?
Alexis Trebic: That's right they all have.
Which means that if they have to hook up turbocharger to the print pressing to add liquidity they will. Ditto allowing major banks to issue loans backed by Uncle Sam . Negative interest rates not a problem.
You think the US military has firepower, just wait tell you see the Fed, Treasury, and Wall St pull out all the stops to prevent their fellow bankers from being hosed. You can argue all you want that this a dangerous precedent, unfair etc. but fighting the fed by going short banks for a long period, best of luck.
I think financials are going to be going up a lot for the next 6 months. I think that the Fed has removed any liquidity concerns any of them have had.
However, I think that eventually, some of the bad banks are going to face solvency issues that the Fed can't resolve without simply buying the bad loans, which I hope they will refrain from doing.
I expect to see a separation in performance between the bad players and the good players when that happens, but for the next six months I bet the bad banks outperform the good.
Some of these players will go bankrupt in the end, though, and should. If the Fed actually starts buying the loans, I'm going to start frothing at the mouth.
Disclosure-- I own UBS and TCF.
I think you maybe right about bad banks outperforming good ones. My Countrywide stock is up more than any other bank/financial stock I've purchased.
I've been writing puts on USB for the last several months, one of these days I'll buy it at price at like to own at (<$30)
By writing puts, you mean that you're giving someone the right to make you buy the stock for the strike price, correct?
What strike price and lead time to you use? What kind of premium do you get for writing the puts?
USB hasn't struck me as a real volatile stock. I wouldn't think the premiums would be very high, but then I've never bought or sold options (except company provided ones )
On the plus side, I guess this is a nice income stream with a downside of being forced to buy a quality stock at a good price. The only real risk is a horrible Enron style surprise in the stock.