Thursday, January 1, 2009

Deleveraging is still in process

Happy New Year!

Things are relatively quiet during this holiday break. But don't be fooled by the lull in the action.

The Fed has nationalized the credit card securitization market (AXP, COF), the commercial paper market, the auto industry (GE, GJM), the world's largest insurance company (AIG), and the world's largest bank by assets managed (C) within the last three months.

My point: The credit crisis is not over. The bank system still are deteriorating. Short the financials across the board.

Transparency: The author purchased SKF July $100 Call contracts on 12/31 at $36/contract.

2 comments:

Lockstep said...

The author sold the SKF call contract at $84/contract on February 19th.

PENNY STOCK INVESTMENTS said...

The deleveraging process could take decades.