ari5000

Whitney Gets Bearish: Will She Be Right Again?

given low interest rates that will last forever, constant stimulus from all global banks... the destruction of the dollar....

and the complete neutering of accounting rules so that Citigroup and other banks never have to book losses... I don't see a big financial blow meltdown.

M. Whitney is 'right' in that there's no 'good' reason for the market to be rallying. But there are plenty of bad reasons why it is. Saying she has "no idea" just kind of shows how clueless she is. But I feel her pain.

S&P 500 Stocks with the Highest Short Interest

the HFTs are playing a different game. There may be several operators who are long and short the same amount -- so the basically have little to gain or lose by the actual price.

But they do make 1/4 cent for every share traded -- which is why we're seeing enormous volume on a few select crap stocks. The game is always the same -- a very sharp run up over a 2/3 week period... and then a slow, managed decent as retail investors move on. Over that period -the billion shares a day volume probably means millions in profits... with options, I'm sure they can pull in close to a billion or two from the move in AIG.

There's no doubt in my mind they've got ETFC as the next target name. It may not be as successful as AIG -- I'm sure someone is pushing for a 10:1 reverse split to get the liquidity down and make it harder to short. I would suggest going all in if you see a reverse split announcement on any crap bank -- especially FNM/FRE -- that would almost guarantee a double overnight.

Game is rigged beyond belief now... but play the hand they deal.

Private Equity Releverages with a Vengeance

so basically once all these banks start loaning again, we can expect to see almost no tax revenues to benefit the U.S.?

Yep, sounds about right.

How High Leverage Has Brought Down the Whole Banking Industry

Very good article.