Fitz919

Smells Like a Bottom, But Confirmation Will Be Required Today

From long experience we all know that the Government always lies to us. That's one thing we can always count on. So, if the Govenment is saying this is a crisis....and the worst is still ahead of us. Why would you believe them, I certainly wouldn't. In just a few days, reverse auctions will be held, and everybody holding their toxic mortgage backed securities will get a chance to sell some of it. At the same time, some of those Credit Default Swaps circling above our heads somewhere in the stratosphere like B-52s will simply vanish, because those securities sold to the government won't need to be backed up by insurance policies any longer. That means the banks can stop paying the premiums. Citigroup for example has been selling everything that isn't bolted down. Why? Because they have to keep paying those premiums. As soon as those toxic securities are gone, so are those enormous premiums. I'm telling you, it's time to think about going long, especially in the financials. When the really big players jump in, they'll probably push the entire sector 25% in a single day. You won't see any real retracement, so you won't get another chance to buy the sector this cheap. In a few months everyone will look back and see the bottom was in early October.