Fish Gone Bad

The Imminent Equity Implosion

I have been thinking about how this rally will pan out. Options expiration is this Friday. Maybe FAZ can fall to $5 before this monster dies of a heart attack.

FDIC Troubled Bank List up to 252

You can create a bank list from thestreet.com's site.:
www.thestreet.com/scre...

Clark Jenkins
FishGoneBad.com

What Now?

The banking sector got electrocuted on September 15, 2008 and it is just waiting to die. Don't believe me? Here is what Rep. Paul Kanjorski of Pennsylvania had to say: www.marketoracle.co.uk...

To put this date into context, this is when Lehman Brothers went bankrupt.

Clark Jenkins
FishGoneBad.com

Eight Reasons Bank of America Is Going to $20

It looks like I am not going to be Mr. Popular with this perma-bull crowd.

BAC is insolvent. It ate 2 really big tape worms, Merrill Lynch and Countrywide. Does anyone remember a tool named Richard Bove? He was praising BAC a week or two ago. That is the exact same Richard Bove who hyped Lehman Brothers every single day before they imploded. He is personally responsible for luring people into an unsafe investment.

For those who want a better idea of zombie banks, check out this article:
www.marketoracle.co.uk...

The 'Doo Doo 32': Receipt of the TARP

good job Reggie. I am wondering how many of the TARP'ers are out buying their own stock.

Another Big Bank Failure: More Likely Than Not to Occur

Reggie,
Thank you once again for the time and effort you put in, trying to actually help people become better investors.

The sad truth is that things are going into the toilet (seekingalpha.com/artic...). As more and more people lose their homes, they sell whatever they can. People cut back where ever they can. They sell cars, homes, liquidate their IRA's and 401K's, and even pile on credit card debt. Perhaps it is because these impending defaults are so horrific that people refuse to believe them. An environment of "stuff blowing up" is not healthy for banks, brokerages, or people's livelihoods.

Right now there is a great deal of volatility and plenty of money to be made on either side of being long or short.

Clark Jenkins
FishGoneBad.com

Combating Cascading Short Spirals

The only reason to be in the stock market is to make money.

Markets move as tidal forces, money moves in, and money moves out. It is as simple as that. The trick is to be on the right side at EVERY given point in time. That said, the US Government can buy up every single bad loan and buy up every single share of every F'd up company on the stock market. This will destroy the dollar. Everything everyone has in the bank and retirement account will literally just vaporize as the dollar is inflated beyond recognition

AIG is on the hook to pay $225 Billion on Friday, 10/24/2008, in defaulted Lehman guarantees. My guess is that any company throwing lavish parties after getting an $85 Billion dollar loan, is not going to pay their obligation. This is what people who are about to "go under" do. The guy down the street from me has a drinking problem and went broke. Before he went belly up, he bought a new Chevy 2500 truck and ran up all his bills.

I am on both sides of this long/short argument. I have no idea how things will play out. That said, my best guess is that "crap happens". Plan ahead.

To anyone reading this. This is not about paper money, it is about toilet paper. In these uncertain times, please just go out and buy what you will need in the near future. Do you use toilet paper? Go out and buy a years worth tomorrow. If you "Threw your money away", it will just be for toilet paper.

I am your best friend ever (for free).
Clark Jenkins
FishGoneBad.com

Paulson in a State of Panic

Take a look at Paulson's face. See the fork mark scars on his forehead? When he was a little kid, he did not know how to eat. That is a sure sign of a retard.

Okay, that was mean.

There is no way that anyone this important can be doing something this stupid unless he is doing it on purpose. ** God that sounds like conspiracy theory **.

Give this some thought: If you wanted to destroy all the money in the world, how would you do it? Seriously. This is a good way to do it.

If you take a look at YouTube's "Money is Debt", you will understand why money blows up.

Clark Jenkins
FishGoneBad.com

BofA, Lehman, AIG: The New Financial Realities

If anyone watched McCain's acceptance speech, you will find this funny.

McCain said that newly unemployed Americans will get training and get better jobs. Jobs that will stay. So I am thinking, aren't those the jobs that everyone at Lehman, just had?

Clark Jenkins
FishGoneBad.com

Bank of America / Merrill: Shotgun Marriage

That really sounds somewhat less than healthy.

Bank of America / Merrill: Shotgun Marriage

So now BAC has all the debt of Countrywide and Merrill Lynch. That really sounds somewhat-less-than-hea... Any day now, Richard Bove will report that BAC is in talks with a Korean bank!

Good ole' Lehman apologist Richard Bove. Trying to sound important and not succeeding.

Clark Jenkins
FishGoneBad.com

More Problems for the Ailing Financial Sector?

My sentiments exactly.

My only explanation of the market behavior is that the market makers had to run the stocks up to unload them. That and the McClellan Summation index has been in an uptrend lately.

The special anti-shorting privilege disappeared today at 11:59 p.m. EDT, and is not being extended. If anyone needs to see which companies these are with pork chops tied around their necks, here they are:
BNP Paribas BNPQF or BNPQY, Bank of America Corporation BAC, Barclays PLC BCS, Citigroup Inc. C, Credit Suisse Group CS, Daiwa Securities Group Inc. DSECY, Deutsche Bank Group AG DB, Allianz SE AZ, Goldman, Sachs Group Inc GS, Royal Bank ADS RBS, HSBC Holdings PLC ADS HBC, J. P. Morgan Chase & Co. JPM, Lehman Brothers Holdings Inc. LEH, Merrill Lynch & Co., Inc. MER, Mizuho Financial Group, Inc. MFG, Morgan Stanley MS, UBS AG UBS, Freddie Mac FRE, and Fannie Mae FNM.

Clark Jenkins
FishGoneBad.com

Why Merrill's CDO Sale Doesn't Mean Big Writeoffs Elsewhere

Can you just see all the happy faces at Merrill Lynch when Lone Star bought the "worst of the worst". This has got to be a meeting of the liars club! This sounds like the hype when all the telecoms were booking these huge orders from clients to which they loaned all the money to buy the equipment. If Merrill Lynch is boasting the sale and pointing a finger at Lone Star for buying the "worst of the worst", AND Lone Star is not protesting the purchase of worthless assets, then this entire sale is a sham. Watch Lone Star turn out to be a shell corporation like Enron used.

A Critical Market Juncture (Again)

The McClellan Summation Index is still headed down. Money is still moving out of the market, and as such, as the tide of money moves out, all stocks fall (at least to some extent).
Now on to the Specialists. Specialists have been allowed to sell stock short and NOT replace the sold shares in a timely matter (3 days). This creates counterfeit stock. Now the scary part. Since the SEC has been downsized, it does not have the man power to enforce stock counterfeiting by the specialists, there is nothing to stop them from selling as much stock short as they want.