Cesar Valencia

10 Financial Entities On the Brink

Big, I have to agree with you on the risks inherent to shorting these banks. But the numbers just don't fit. I won't be short these banks when they reach 0 but I still don't believe they are attractive. These guys, together with WaMu have too many liabilities, too much downside, my guess is that they are allowed to die and then some vultures will pick up their assets.
It's so much easier to make money when everything is going up that being a bear is just sad. That being said, you can't be anything but bearish in this environment. Let's hope the institutions that are going to fail fail and the ones that survive thrive in the new financial setting. I still won't touch banks since I just don't know how they are going to make money going forward.

10 Financial Entities On the Brink

I am short DSL. Have been short for months now. It's ratios are along with Vineyard's one of the weakest in the industry. I've been trying to short more but shares are hard to locate. I understand the pain in losing money in the stock market, but fighting the numbers and replacing analysis with patriotic crap is just stupid. These companies were grossly mismanaged. That's it, if you want to blame someone for their fates, blame 1) It's stock holders for not having the diligence to research the firm 2) It's the stock holders for having such negligent boards 3) the stock holders for allowing the boards to keep suck mediocre management. This is capitalism, wealth is created, transferred, and destroyed. Capital is supposed to flow from bad companies to good ones. This is what's going to continue to happen for the foreseeable future.
For you guys that believe "short selling" BS take note. First of all, the great Mr. Cox from the SEC said that no naked shorting had gone on and that he was just trying to prevent things from happening. Second, just try to short one of those stocks, just try, ONE. You won't be able, and if you do, you'll have to pay rates as "low" 10 cents per day per share.
I'm sorry if you have lost money with your financial stocks but this is all your fault. Do your homework. Pull up each company's 10-K and then the latest 10-Q. If you're going to sink your money into anything please be diligent because if you're not, you'll have no one to blame but yourselves.

The New Bankers

Buffet financed Salomon Brothers in the 80's. He knows how to turn "loans" into investments.