Friday, February 20, 2009

Ken Langone CNBC Interview

Regular readers know that I have the utmost respect for Art Cashin. He is, to coin a complimentary phrase from the biz, a brokers broker. He has forgotten more than most, myself included will ever know. A few days ago Art indicated that we need to basically heal, that we need to stop vilifying and stop the witch hunting and move on.

I must respectfully disagree with Mr. Cashin. The reason I do is that we cannot heal and move forward until the fraud, the deceit, the malfeasance, must be exposed and punished for all to see. This, in my opinion is the only way we can move forward and heal.

Art Cashin was glad to see Ken Langone on CNBC this morning as an adult bringing some sanity as Are called it. Okay. I agree. Langone, whom I do not know, seems reasoned, intelligent, and sane. I will overlook some of his positions on certain items, like mark to market, which I wholly disagree with but it was one of his comments shocked me.

Mr. Langone indicated his sons warned him this was all going to blow up. He says he ignored the advice and stayed the course. This comment is okay but it was him going on to also mention, I am recalling this from memory now, how a government official walked him through the whole mess, how bad things were and how it was gonna blow sky high or something to that effect as I recall.

My question to Mr. Langone is "who was this person?"Why was this not disclosed. Why do we not know who this was? How pervasive was this knowledge given the oft repeated alibi that "nobody saw this coming" ?

It obviously means that there were plenty in government, in positions to influence legislation, that were more than well aware this was going on, understood the implications and DID JACK ABOUT IT !

My question to Mr. Cashin is, "can we heal with this type of unfinished business lying in our midst?"

I humbly suggest that unless and until all the punishment has been meted out, until as Karl Denninger puts it 'until the swamp is drained' we are going nowhere fast. It pains me to no end to say this but it is what it is. I realize a man like Art Cashin does not want to fan any flames of unrest or anger but I believe until we take care of this unfinished business to prevent those flames of anger as they may spark on their own if we don't.

Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 2 units Ultrashort MSCI EAFE ticker EFU @ $89.80 stop at $99.62/114.78
Long 2 units Ultrashort S&P500 ticker SDS @ $69.80 stop @ $69.80/83.28
Long 2 units Ultrashort Real Estate ticker SRS @ $53.80 stop @ $53.80/64.72
Short 1 unit Wells Fargo ticker WFC @ $20.20 stop @ $12.36
Short 1 unit Apple ticker AAPL @ $102.05 stop at $100.11
Short 1 unit Apollo Group ticker APOL @ $82.95 stop @ $84.52
Short 1 unit Goldman Sachs ticker GS @ 96.95 stop @ $92.94
Short 1 unit Microsoft ticker MSFT @ $19.20 stop @ $19.20
Short 1 unit Darden ticker DRI @ $28.95 stop @ $28.95

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