The Realist

Short Financial ETFs: Watch Out for the Fannie/Freddie Effect

Sure SKF might be down today but lets get real, look at that graph, are you telling me that you really think the banks are worth as much today as they were in January when everyone thought things were going to be contained. After all the horrible news for nine months banks are actually up? All this signals to me is that the people running this market have no clue.

Financials To Resume Meltdown Momentarily

Are you saying in point 1 that the banks are going down now only because of the short selling rule? It has nothing to do with the fact that these companies are in serious trouble and any one way collapse at any moment? It has nothing to do with billions of loans outstanding that might not be paid back in full? It has nothing to do with having to use what precious little money they have to buy back auction rate securities that they sold by deception?

With at least another year of write offs and to the real estate bottom, a contention that I believe is off by one to two years, why would the market rally in two months? Because it is forward looking and effecient? Just like it was forward looking in Aug-Oct of 2007 when it ran to a new high in the face of the sub prime meltdown?