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Fast Money Recap: 100 Trades for 100 Days (1/13/09)

Why bother buying any stock? The market is structurally unsound and broken. Most of the rules are on the shorts' side. KEEP SELLING!

JPMorgan Chase: Poisoned by Bear's 5,000 Counterparties

JP Morgan needs to disclose the cash flows on the level 3 assets plus all the statistics regarding delinquencies, foreclosures, net charge-offs, interest rates, insurance, maturities, geographic concentrations, single issuer concetrantion, and average lives, etc. These data will help to allay fears and uncertainties. Not all level three assets are toxic.

S&P Set for 50%+ Gains? Not So Fast, UBS

The CDS market is being manipulated.

The ETF AGG has recovered close to the level of pre-Lehman.
The absurd, ill-conceived, flawed fair market value accounting basically implied that at the end of September, the net worth of all financial insitutions were close to zero. Now. the broad market index has recovered, the financial institutions' net worth has increased a magnitude of a few trillions plus the recent capital injection by the Treasury.

There are a bunch of big manipulators still trying to create a panic by advertising the easily manipulated derivative indices.

Normally, I am already bullish. But, the stock market is structurally flawed because of the repeal of the uptick rule and the unregulated CDS market. Thus, I have concluded that this is a casino, and it should be played accordingly!

Fast Money Recap - Who Cares about the Citi Rally? (11/24/08)

Investors should care. Here's why.

The purchasing strategy does not work because sellers do not want to sell the assets that are still performing.

With the new strategy, the Treasury will act as an insurance company. Taxpayers are protected, because the Treasury will get paid for insuring the investments. The insured invesments may carry an implied rating of AA or AAA. Citi will continue to hold the investments until they pay off or until they are sold. A very efficient model. Shareholders are not wiped out. Capitalism is saved! The stock market should appreciate this strategy much more.

Henry Paulson Could Have Done Better

Paulson and Bernanke just hit a home run!

The model they used to save Citi is fantastic. It's better than purchasing the troubled assets. The strategy used very little money. In the purchasing strategy, there is a problem that sellers do not want to sell assets that are still generating good cash flows, even though the assets have bad marks.

The market should understand the logic.