Wow, what a day huh? A historic bank bailout and a historic two day run for equities. Just last Friday SKF (the Pro-Shares Financial Ultra Shorts ) topped $300. Today back down to $173! There's talk of a homebuilder bailout circulating around, hence the thirty-three percent one day drop for SRS (Pro-Shares Real Estate Ultra Shorts). A bailout of the homebuilders? Umm, can someone tell me why?
All this bullishness got me thinking back to when I got my ass handed to me in April of this year when suddenly the financials were in the fourth quarter or the ninth inning of the crisis and were "dirt cheap". I was short them up to my eyeballs and got a public schtupping. Thank God the blog readership was a lot smaller then, although I remember a few of you buggers saying nice things like, "Hey Eric, how do all those SKF's feel up your ass??" Anyway, in early April I wrote this little song, sung to the tune of The Temptations Classic, "Just My Imagination";
I look at my Bloomberg and watch as the news scrolls on by
I say to myself I'm such a lucky guy
To buy the banks down here is a dream come true
With all the bad news in the world Citi is a steal at twenty and two
But it was just my imagination, once again
Running away with me
It was just my imagination
Running away with me
UBS wrote down 19 billion, that’s a billion with a B
I don’t know about you, but that’s great news for me.
Toll Brothers at 20, glee just blows my mind
The bottom finally is here and value I shall find
But it was just my imagination, once again
Running away with me
It was just my imagination
Running away with me
Every night I hope and pray
"Dear lord, hear my plea
Don't ever let another take Merrill from me
Or I will surely die
The Fed’s love is ecstasy
When their cheap funds enfold me
I hear a tender rhapsody But in reality, if they’re worried shouldn’t I be?
But it was just my imagination, once again
Running away with me
It was just my imagination
Running away with me
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