Thursday, January 10, 2008

What's in your wallet?

Not much in Capital One's wallet so it seems.

And here we go again. Financial firm says they're in deep doo-doo. So-called experts are shocked. Massive sell off on Wall St.

Geez how many times will this cycle occur? Why the hell is anyone still shocked when a financial services firm comes out with poor numbers. It's as if the so-called experts figure OK Citi, Merrill, Bear Sterns, Countrywide all lost gajillions of dollars. Yet we still are bullish on Capital One. That is just plain idiotic.

They're all related. If Citi loses billions then it's a good bet that everyone else will lose billions as well. They all lent out money recklessly over the last few years and they are all in deep trouble now as those loans are not being paid back. It's really not that hard to understand.

I was hoping for another 1 day rally though as I bought some CFC calls yesterday when it was at $5.00. Still just under $5 today and the calls expire next Friday. Might still have a sucker's rally this or next week. Benny B will say the words rate cut and click his shoes 3 times. Then the sheep on Wall St will start salivating and hit the BUY button only to realize 48 hours later than a rate cut won't fix the mess we're in any time soon. It is so predictable you can set your watch to it.

And how about those retailers? Worst Christmas season in years. Again who woulda thunk it? I thunked it as I mentioned here numerous times that RTH was a great short. It is down 15% over the past 3 months.


Wow that was fast. The sucker's rally has begun.
Benny B has clicked his magic shoes and all will be well.

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