Truly amazing carnage in our financials - we've lost AIG (AIG), Lehman (LEH), Bear (BSC), Merrill (MER).... Fannie (FNM), Freddie (FRE) .... now we lose Citigroup (C), and looks like Bank of America (BAC) is on it's way....
We're going to be left with one "supermarket" bank....
Again, just nationalize the system... we're already there - we're just playing a charade of "free markets" right now. Thank you Phil Gramm.
- A person with knowledge of the discussions said Thursday the new aid package (for BAC) could be modeled along the lines of the financial lifeline that was thrown to Citigroup Inc. in November. (well that worked out well for Citigroup, so why not?)
The good news is in the future you won't see the losses these financials are taking each and every day which are now so public in BAC and C. They will quietly suffered - just imagine the carnage going on at Fannie and Freddie. These losses (to the tax payer) will be written off quietly in the background (since the stock symbols won't shout out the damage any more) and then CNBC can cheer about how all the damage in financials is now done with.... as the losses mount on your grandchildren's "investments".
2008 was the year of "Sunday night" nationalizing (waiting to see what steps government did to save the system on a Sunday night before Asian markets opened). Of course the pundits said, once we turned the calender, it's a whole new ballgame!
Not so much. See you Sunday night.
p.s. I'm dumping about half of short exposure here into S&P 820... if we fall through the ice, I'll get it back. I'd assume bulls make at least some defense here. If they cannot - then one can get short exposure back and S&P 820 is the new ceiling (down from S&P 850).
No positions
Did you like this article?
's
