I cannot recall who said it as it has been said too often to attribute correctly but the phrase I am referring to is, "they learned from Lehman". With the 'they' being our omnipotent government, specifically Fed and Treasury and Lehman being the Lehman bankruptcy. This is spoken in the context that letting Lehman go under was a huge mistake which has caused all our problems. I would humbly counter that the Lehman bankruptcy is the ONLY thing they got right! But don't take my word for it, just look at the major market indices.
When you hear pundits and other shills claim that Lehman caused this or started all 'this', know that the person uttering the claim has absolutely no clue what caused it. I cannot stress this enough nor say it loudly enough;
" LEHMAN IS THE ONLY THING THEY HAVE DONE RIGHT ! "
But hey, don't take my word or the the markets word for that matter, just look at the wreckage left in their, (politicians, Fed and Treasury's), wake.
Lets start with Bank America.
You have a troubled lender like Bank America, an outfit that given the extent of downturn in the economy would have trouble getting through it on its own. You then merge this with a disease plagued outfit called Countrywide, a toxic ridden cess pool of fraud and malfeasance. Now if that was not enough to kill the healthy host, Bank America, you pile on another disease ridden basket case, Merrill Lynch and you end up with a formerly healthy bank in the intensive care unit, tubes down its throat, medicated up the wazzoo.
Countrywide + Merrill Lynch + Bank America = Death/Zombification
Now lets move on to Wells Fargo.
You start with a mushroom cloud in the making that was Golden West Financial, combine that with, lets just call it a bunch of empty suits and be done with it at Wachovia and then mash it all together on top of an already ailing lender, Warren Buffett endorsed or not Wells Fargo and.... hey wait a minute haven't I just seen this formula before somewhere.
Golden West + Wachovia + Wells Fargo = Death/Zombification
At least Dr. Frankenstein had the humility to only create one monster.
In the Washington Post yesterday, President Obama warned in an op-ed piece that; "This recession might linger for years. Our economy will lose 5 million more jobs. Unemployment will approach double digits. Our nation will sink deeper into a crisis that, at some point, we may not be able to reverse," Obama wrote in the newspaper piece.
I think he omitted an important item while using the bully pulpit. He forgot to mention martial law is coming to a town near you or maybe he saved that for his next piece.
I want to state that while I have been writing this blog, I have written some extremely bearish forecasts, extremely negative outlooks, to the point where some could say I was all doom and gloom. But.... never, never, never, ever did I state that our circumstance was irreversible. I have stated early and often that... EVERY ACTION THE GOVERNMENT TAKES WORSENS OUR SITUATION.
I am shocked our President has such little faith in the fabric and the backbone of this great country. Mr. President, this country will MOST CERTAINLY recover if only just left alone, it is the purported help that is distorted and disrupting everything. Stop trying to help the economy ! PLEASE STOP THE MEDDLING AND MANIPULATION NOW !
Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".
Long 2 units Ultrashort MSCI EAFE ticker EFU @ $89.80 stop at $89.80
Long 2 units Ultrashort S&P500 ticker SDS @ $69.80 stop @ $66.15
Long 2 units Ultrashort Real Estate ticker SRS @ $53.80 stop @ $47.18
Long 1 unit US Gasoline fund ticker UGA $21.85 stop @ $19.58
Short 2 units Darden ticker DRI @ $27.15 stop @ $28.70
Short 1 unit Wells Fargo ticker WFC @ $20.20 stop @ $20.20
Short 1 unit JP Morgan ticker JPM @ $27.35 stop @ $27.35