Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Thursday, September 25, 2008

I swear I'm not becoming a republican.

...What they wanted to do was create a Liquid market for the CDO's.

To do that you need as many participants as possible.

as congress puts in things like the Warrants, CEO compensation rules.

it starts to exclude some companies.... Like credit unions, And some of the "good banks", From coming after the Liquidity.

Thereby, doing exactly what they don't want to do... Reward the people who did the bad things, and punish the Good.


In these cycles... you have to understand that the banks don't have to lend, They can sit for years and only let lose the slightest of loans. We have to convince them to loan. These are publicly held companies, they don't loan to "help america". they want to make money. Which is why we have to use socialism to entice them to loan.... We give them socialism, they give it to us.

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