I just had a feeling yesterday, when it seemed like we were going to unwind about ten years worth of leverage and insane risk management in a forty-eight hour period that our "free" market was going to get a lot less free. Early this afternoon when Putnam closed their Money Market Fund and BNY Mellon broke the buck I think the Government issued the order to launch "Operation Stalin".
From this point forward you can't play any equity from the short side, even if you've borrowed your shares, which I hear you can't anymore because huge stock lending operations like Calpers have stopped lending financial stocks. Also, if you think about it, AIG was big in that game and they are now the property of the U.S. Government so you can't borrow shares from them either. Hell, you won't be able to buy puts because the short selling rules put option market makers at huge risk as they have to "pre-borrow" shares. You just can't trade against the government when it can change the rules on you in a flash. In fact I'm a little worried I called John Mack a "Fredo"!
I also think a Resolution Trust II plan is going to happen soon as well. The toxic assets of Lehman and AIG are going to go to a place as secret as "AREA 51", the base where the Air Force keeps the UFOs! You ain't gonna see them no more! It's a new world comrades!
Lastly, someone just sent us a GREAT email about letting us join them in Montana where's there's plenty of food and ammo! My fat fingers lost the email so here is a VERY big thank you from your pals at Monkey Business!
Mario must be so proud.
Posted by: eric | September 18, 2008 at 06:14 PM
Andrew Cuomo is a dirty douchebag.
Posted by: Jackal | September 18, 2008 at 06:08 PM
Sure, why the hell not.
Posted by: eric | September 18, 2008 at 05:55 PM
Will the resolution trust also take currently solvent bank's "toxic" assets?
Posted by: RPB | September 18, 2008 at 05:12 PM