Wednesday, April 1, 2009

m2m "purity" is lunacy

So we want m2m purity huh? yes, i know, it always makes sense to mark a $1 billion portfolio on the last $1 MILLION sale. fine. if i knew for certain that FASB would stick by its hard line, i would load up on puts, all strikes, on wfc, usb, jpm, bac, pnc, etc. if i was able, i'd be buying credit default swaps on these banks and when the positions were on i'd fly right into skf exchange-traded fund, then cash out of it for huge gains.

and i'd do it again the next day, as the common stocks broke and the ratings agencies downgraded, simply on stock price and cds price action, and make a fortune. maybe that's the goal of these people who back this absurdity of breaking the "bad" banks and "good" banks alike. maybe that's been it from day one.

all i can say is the day that the rules are all about wiping out the banking system for the sake of misguided purity are days when the government is strictly the United Shorts of America and it has no interest in protecting the economic interests of the people of the country or its government.

the purists don't have a realistic, real-world leg to stand on.

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