Dan Walker

Where's the Bottom? Still Anybody's Guess

Regrettably, I fear you may be right. As much as I decry fiat currency, as much as I would love to see a stake driven in the heart of the federal reserve, as much as I fear the proposed bailout will decimate the dollar and collapse bond prices, he fact remains that our economy is still in better shape than its compatriots, and we may, in fact, emerge from this "crisis" smelling like a rose in global comparison. This is about as depressing a scenario as can be imagined. There is no reason to get long, but neither is the risk on the short side worth the reward. I can envision a post-bailout scenario where equities trade in a range the next two years while the dollar grinds down incessantly. This is the worst case scenario where short the dollar is the only remedy but the dollar keeps popping up because of weakness overseas. About the only thing to do is jump on gold and hope the PPT gets distracted or runs out of money.

The Reign of Uncertainty in Financial Markets

Never try to teach a pig to sing. It is a waste of time and it annoys the pig.

Banks: Is This the Biggest Bear Squeeze in History?

Number one, let me go on record that naked short selling was banned in the 30's and it served us well for 75 years. I think it should still be applied for ALL stocks and not just the ones who can continue to fund the FED's malfeasance in favor of the banking industry.

Assuming that protection is in place, short sellers are NECESSARY simply because they provide a bid in a downdraft (sub-optimal price discovery process for you liberals). You want an air pocket under a collapsing stock? That is the shortest path to zero.

Applauding the Fed's GSE Action

I share your dismay at seeing these two bailed out. However, I agree that allowing them to slide into the abyss is probably not an option and would more than likely append at least 3 years onto the current mortgage panic.

Options Trader: Friday Outlook

Phil, you ought to be happy as a dead pig in the sunshine. They managed to get everyone short Friday before expiration, vix got within a hair of 30, it is all on their bullsh*t, there is no Dow support below the low for a 1000 points and Ben announced that Fannie/Freddie could borrow all they wanted at the discount window reallll-ly late Friday afternoon. What more do you want?