Seeking Alpha

moneymcbags'  Instablog

moneymcbags
Send Message
Money McBags is the preeminent financial humorist and money maker in the world. While known for his ability to find and invest in undervalued equities, Mr. McBags is also a world class dick joke teller, an aficionado of lovely ladies, and avid reader of books without pictures in them. With... More
My blog:
When Genius Prevailed
  • 5/19/10 Midafternoon Report: VIX shoots up, claims it doesn't have a problem, just wants to try to take its mind off global recession 0 comments
    May 19, 2010 5:21 PM | about stocks: KITD, TGT, BJ, FHCO, RICK

    The market got clobbered again today (until a closing minutes rally) like it insulted Preston Brooks' uncle or like it had one too many shots of tequila while watching the donkey show.  Investors continue to fear the impending doom of Europe with their quaint monetary system, silly accents, and love of black jeans.  However, macro news in the US was marginal today with inflation at its lowest level in 44 years which should allow the Fed to keep rates at historic lows until it causes the next bubble.  Core inflation, which takes out the effects of things on which people actually spend their money like food, energy, and lap dances, was flat and thus led to the lowest 12 month gain since LBJ was president, yo-yos were a fad, and full muff was the style.  Overall though, consumer prices fell by .1% so on average the little money you have left will now get you .1% closer to buying some shit you can't afford.  On the housing front, mortgage demand shriveled up worse than your "jumbo arm" after diving into the arctic ocean immediately after viewing a Hanna Hilton opus.  With the federal tax credit for homebuying now expired, mortgage purchase applications fell by 27% despite record low rates and home sellers making sure all of their carpets match their drapes (and for the record, Money McBags is not in favor of carpeting for his hardwood).  Making matters worse is that foreclosures rose to a record high 4.63% and now 1 out of every 7 homes is either in foreclosure or delinquency or as it's known on the Street "a AAA rated Goldman MBS CDO."  Finally, the SEC is trying to put in circuit breakers for all S&P 500 stocks to combat the stranglehold high frequency traders have on the market (and as always, Money McBags is a big proponent of the Camel Clutch as the best stranglehold).  While these measures may have the effect of bringing a knife to a gun fight or hiring Magic Johnson to judge a grammar contest, the circuit breakers will seek to pause trading for five minutes if the price of a stock moves by 10% or more in a five-minute period or if Bar Refaeli show up on the floor of any exchange.

    Internationally, investors are still freaked out by Angela Merkel's preemptive strike on naked short sellers and will make sure they have an extra pair of pants with them at all times just in case.  Germany's new shortng regulation has caused investors to wonder what exactly German leaders know that is not public as German bank stocks have yet to come under attack and usually politicians wait for things to crumble before acting.  Strangely, the rest of Europe has not followed what could now be the biggest Merkel boner since Fred failed to touch second base (and Money McBags would never fail to touch Angela's second base).  The failure of other european countries to follow Germany's lead in regulating their markets is causing investors to question the strength of the EU while applauding Europe's sanity because we all know what happened last time Europe followed the Germans.

    In stock news, does anyone really care?  No seriously.  The market is not trading on fundamentals right now as forecasts for next year are more dubious than receiving a letter from Ted Kaczynski.  Money McBags has been harping on analysts using normalized earnings as a valuation metric for awhile now since normalized went out the door with subprime CDOs,...READ MORE.....

    Disclosure: Long KITD
    Stocks: KITD, TGT, BJ, FHCO, RICK
Back To moneymcbags' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.