Tuesday, August 14, 2007

Tuesday Morning Thoughts

To show you all just how uncontained the mortgage problem is Thornburg Mortgage (one of Cramer's favs) is getting taken out behind the woodshed again today(that might be an understatement). These cats are a PRIME mortgage player! I repeat, a prime mortgage player so should we be surprised when today we get the lousy reports from Wal-Mart and Home Depot . Did you see how pained Mark Haines was when the Goldman retail analyst had nothing good to say about the WMT report. Nothing like impartially reporting the news Mark. To all those out there who get there ideas and nerve to jump in from CNBC just remember with a few exceptions(Rick Santelli for sure) these might as well be weather people giving you the news. Oh, and Mark it was Rothschild who said "I buy when there is blood running in the streets of Paris".

Maybe Ben Stein may want to have a look at Thornburg or The BKX or the XBD chart when he says the mortgage mess will be much ado about nothing. He says speculators are to blame, wow now is that original or what. Ya think he came up with that one all on his own? Probably stayed up late many a night coming up with that extremely cerebral hypothesis.

Goldman should call up Nick Leeson, John Merriweather, or the cats at Metallgescellshaft and find out if averging down on a losing positon works. Now Goldman can call it any number of things butthat is exactily what they are doing, averaging down a losing postion. On second thought I can save them the dime and give em the skinny on what happens. You end up broke ! Losers average losers, no two ways about it.
First we got this on AXA, then we got this on Coventree. Now as I am writing we get more of the same with Sentinal freezing redemptions. I will ask you again how many warning signs do you need to finally heed the warning to start protecting yourself. You must take care of yourself as no one else will. Please take heed and make the necessary adjustments. Go to cash, to to short safe treasuries, if aggressive look for shorts but do not sit by complacently listening to the charlatans tell you all is well while it is most definitely NOT !! Good trading to you.

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