November Stock Talk III

Right on, Koaj.

WSC-

As much as you know about economics, I too am shocked-----that you are a proponent of these bailout packages for all "the cronies" who got us in this mess.

These "executives" need to be "executed," and I am not joking one bit-----I mean it 100%. 

These "bailout packages" will keep these scoundrels who caused the problem alive and kicking-----and you and I will pick up the tab for their European vacations, tutition so their children can attend private boarding schools, and 10,000 square foot additions to their mansions in the Hamptons.  You down with that?  Are you one of Paulson's cronies?

I am all about free market capitalism, WSC, where failures and crashes are part of the process.  They are accepted and expected, too.  Nothing lasts forever.  These bankers, auto makers, etc...... ran amok for decades, and now it is time for their end to come.

Yes, WSC, I'd much rather have "complete chaos" right now than put a bandaid on the broken machine, whose operators are taking your and my freedoms away right in front of our faces.

What I want is for the market to sort itself out-----no matter how long it takes and whose lives it takes.  No bailout packages for these hideous people.  Way it works.

Can't privatize profits and socialize debt, and you know that.

Cheers

i'm only semi-ok with any of this stuff if it prevents systemic failure...but as of this morning we have about 7T pledged and we're not one ounce better off

do any of you know what's on GS/JPM/MS/C's balance sheet? until we do, there will be distrust everywhere and there's nothing the bald, the beard, geithner, or the messiah can do about it

read

then reread tomorrow and the next day and keep reading until you understand what was done and what has to be undone to be whole again

I am not ok with the bailouts but I am even WORSE not ok with the consequences of not taking these actions.

Free markets not functioning were what got us in this pickle..the FED printing like crazy, the regulators not doing their jobs..thats not free market activity.

We dug a hole and it will take some pain and time to cover up this hole. I dont consider a system failure as an acceptable consequence.

One good thing that will come from this is that the companies who take the bait are screwed for years.. AIG and C arent going to move at all..their float is huge, obligation huge..so these companies arent going to run back to the highs for a decade or longer..if ever.  

Well done.  See, that is exactly what I am trying to say.

The farking "stock price" won't move---yeah, that's right.  But the farking "executives" that got us in this mess will still draw a 50 million dollar a year salary----paid for by higher taxes on you and me.

How on earth can you endorse this mularkey, WSC?  How?

CC,

Its the consequences..they are larger than the companies themselves.

You need to get over the anger about exec pay and realize that the companies serve a huge purpose, and directly AND indirectly provide thousands maybe millions of jobs.

THAT is why the FED and government are doing this bailout, as a country we cannot allow our financial system to implode in the name of a free market because the free market did not cause this to happen in the first place.

If you want Greek style of punishment, you wont find it here. Unfortunately it is a necessary action we have to take, like it or not.     

not at all...i recommend readin Liar's Poker or anything else Lewis has written...he's excellent

Wow..

This is either a massive short cover or a bottom for longs.

Volume huge and they are moving it up strongly.

 Methinks a trap...I am selling into all rallies...

Sorry just noticed this...here is one of multiple articles referring to it

https://www.businessweek.com/bwdaily/dnflash/content/nov2008/db20081121_876842.htm?campaign_id=rss_topStories_msnbc

Hey WSC...as we are all aware, you and others in this forum have close interest in DRYS.

I have been looking at some Jan/2011 Leaps and am making serious considerations for $2.80 a contract.

In today's market, DRYS isn't the only company that a couple months ago was $100+ and is now <$5.  What are your thoughts on taking the approach of buys LEAPS for some of these recent hi value stocks that are now in the toilet.  Potash maybe another candidate for me.  Dare I say Ford as a candidate?

Both are in very good earnings positions that I would say have been victims of shorts.

I need to clarify my last statement (Potash and DRYS) are in good earnings positions, F is certainly not.

If you like DRYS I would just buy the stock itself at these prices.  Its basically an option with no expiration.

Same thing with C, UYG, GM or F for that matter

Yeah at 4 bucks I would just buy the stock.

If you wanted options make sure you go for something that gives you better than 2 to 1 leverage.

The 2.50s are like buying on margin long the stock, the 5s are too expensive relative to the common.

There is ZERO value in those leaps, get 5000 shares and forget the options.