If you're short, I'm the sucker going long....: Question...

Sunday, July 20, 2008

Question...

So, after that Rally? will you ever be able to get that many people bearish on the financials, ever again?

Is The low hanging fruit is gone?

2 comments:

tradewell said...: If you think this was the worst, then yes, this was probably the low point.

But with every significant bank problem people get more wary, as opposed to getting desensitized.

Maybe. I don't know, sometimes people seem dumb on the whole. They may not care or believe in the mighty FDIC.; July 20, 2008 at 9:25 PM
Eric said...: hmmm, in the 30's there was much less confidence in the banking system.

Sometimes, when caught up in some big "global issue" it's hard to get perspective, I remember Iraq, and people saying "why aren't more people outraged?"...

My comment was... "a lot of people are busy Mowing their lawns"(and that is proverbial 'lawn mowing'.)

People don't get what a CDO is, I have friends with PHD and masters, that don't get it.

I'd also offer that most people short the financials don't get it either.
Many of them, were caught "Selling the bottom" and took big hits. Once bitten Twice shy.

The worst problem is if they can't access Capital markets if they need to.

Even BR won't take on that there is another 25% lower in the financials... Seems like poor risk management to go after another 13%.

Most of the market feels like they Want the Bears to sell the financials back to them, so they can get another bite, at the apple.; July 20, 2008 at 10:41 PM

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