Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

[Munger]

No mincing words or masking anger from Mr. Rogers:




(Link found courtesy of Barry Ritholtz)

[Jim Nickerson]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

No mincing words or masking anger from Mr. Rogers:

(Link found courtesy of Barry Ritholtz)

I did not watch Mr. Rogers yet, but if he was pissed off yesterday or two days ago, and is still short banks as he was, I expected "pissed off" would be a mild description of how he feels right now if he isn't sleeping.

$BKX up 14.4% today, SKF down 22.23% or so, UYG up 17.08%, C up 12%, FNM up 31%, WFC up 31%.

I'm not sure that the debacle to the downside with financials is done, but for those short, there may be some pain in here before the slide might resume.

[olivegreen]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

I have now concluded that there is nothing "rational" or "scientific" about economics. I think its voodoo in a suit.

OG

[Munger]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

I did not watch Mr. Rogers yet, but if he was pissed off yesterday or two days ago, and is still short banks as he was, I expected "pissed off" would be a mild description of how he feels right now if he isn't sleeping.

$BKX up 14.4% today, SKF down 22.23% or so, UYG up 17.08%, C up 12%, FNM up 31%, WFC up 31%.

I'm not sure that the debacle to the downside with financials is done, but for those short, there may be some pain in here before the slide might resume.

I'm not sure when the interview was given, but he doesn't seem to be mad that the financial stocks have gone up very recently; he says that merely gives him more opportunity to short them.

[jtabeb]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

I'm not sure when the interview was given, but he doesn't seem to be mad that the financial stocks have gone up very recently; he says that merely gives him more opportunity to short them.

Shorting them is ILLEGAL on Monday. I would be freaking pissed too. (that's why I don't short, too exposed to external market intervention). You do everything in your power to make sure you are correct in your analysis, and you are, but you lose because someone else doesn't like THAT outcome.

Freaking Bullshit if you ask me. (what about all the naked shorting IN OTHER stocks, that should be BAD too, right? Do they halt the practice across the board, of COURSE NOT!)

I'll stop now because I'm to the ANGRY, SPITTING stage.

[jk]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

anything rather than think that maybe bank stocks are down because their assets are junk. [see e.g. the merideth whitney presentation i posted in another thread] when are they going to investigate manipulation to the upside, e.g. painting the tape at the end of each month and especially at the end of each quarter? never.

paulson wants a blank check to spend what he wants on the gse's, without any demand that the stockholders get wiped out or the bondholders take a haircut. privatize profits and socialize risk.

i've never been a conspiracy theorist, and i'm still not, but i'm also becoming more and more convinced that you don't need a conspiracy theory to believe that the deck is stacked to produce payouts to an elite at the expense of the rest of society.

[GRG55]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

I did not watch Mr. Rogers yet, but if he was pissed off yesterday or two days ago, and is still short banks as he was, I expected "pissed off" would be a mild description of how he feels right now if he isn't sleeping.

$BKX up 14.4% today, SKF down 22.23% or so, UYG up 17.08%, C up 12%, FNM up 31%, WFC up 31%.

I'm not sure that the debacle to the downside with financials is done, but for those short, there may be some pain in here before the slide might resume.

Rogers has been short financials for so long I doubt a one day bounce has seriously eroded his trade profits or his resolve.

[marvenger]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

yep as rogers said the fed and treasury are answering to no-one except wall st. No-one who sticks up for the little guy gets close to power; unless there is a crisis on. When the crisis is over the power brokers come out finding those willing to be rewarded handsomely for influencing things in the special interests direction. Not a conspiracy, just the way it works when greed is fundamental to 99% of people's makeup.

[GRG55]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

anything rather than think that maybe bank stocks are down because their assets are junk. [see e.g. the merideth whitney presentation i posted in another thread] when are they going to investigate manipulation to the upside, e.g. painting the tape at the end of each month and especially at the end of each quarter? never.

paulson wants a blank check to spend what he wants on the gse's, without any demand that the stockholders get wiped out or the bondholders take a haircut. privatize profits and socialize risk.

i've never been a conspiracy theorist, and i'm still not, but i'm also becoming more and more convinced that you don't need a conspiracy theory to believe that the deck is stacked to produce payouts to an elite at the expense of the rest of society.

I still think they are making it up as they go along jk, with each crisis spawning a solution created by an elite that long ago evolved and learned to protect its own.

Hank isn't in there by accident. As we have seen he makes a lousy priest when it comes to administering last rights.

Bernanke seems the odd man out...the doctor they had to call in to give the whole malodorous affair a camphorous overscent.

[Jim Nickerson]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

I'm not sure when the interview was given, but he doesn't seem to be mad that the financial stocks have gone up very recently; he says that merely gives him more opportunity to short them.

From the recent past, regardless of when the interview was, all the financial stocks (see $BKX) have done recently is go down. Today if one was short, one was hurt, but if one had enough profits to ride it out, then perhaps it will develop into a good shorting opportunity in a while, or maybe tomorrow the decline resumes.

[marvenger]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

they're making the route up as they climb the mountain, but they know what mountain they're clinbing. Hope they fall off soon though.

[LargoWinch]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

GRG55, what is your view on Canadian Banks?

Royal Bank of Canada (RY) dipped below $40 recently for the first time in 2+ years. The stock yield 4.70%.

Do you think RY is a falling knife as well?

[GRG55]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

GRG55, what is your view on Canadian Banks?

Royal Bank of Canada (RY) dipped below $40 recently for the first time in 2+ years. The stock yield 4.70%.

Do you think RY is a falling knife as well?

LargoWinch: Frankly I am just staying away. I just do not see how one can be reasonably certain the write-offs are behind them, nor do I see how they will ever get back to the fabulous earnings growth rates they enjoyed in the closing years of this cheap-credit frenzy. I think banks all around the world are perfect candidates for what Don Coxe calls a triple waterfall decline.

I can understand the yield attraction, especially if you are Canadian and can benefit from the dividend tax credit in a non-sheltered account. The Canadian banks (and Manulife) have been "must haves" in any Canadian's portfolio for so long that it is hard to imagine not having an allocation to the sector. The argument is made that the Canadian banks (except perhaps CIBC :rolleyes did not participate in the excesses that US, European and Japanese banks went through. That may be a valid observation, but that doesn't mean they are healthy; just means Canadian banks have treatable skin cancer instead of lukemia.

The other argument is the lack of competition and therefore high consumer fees the Canadian banks can get away with charging. Again valid; but if there was ever a time when competition would be introduced it will be soon. Mergers in the sector won't be blocked like Paul Martin did some years ago (latest rumour I hear is Manu takes out CIBC), but the quid pro quo for that will be an opening to international competition in some form I would bet. Not good for their stock price I would think.

Having said that, we could well be in a tradable bounce environment on all the financials. BUt I am not a trader so do not usually try to catch that sort of move.

That's my two loonies worth FWIW.

[phirang]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

anything rather than think that maybe bank stocks are down because their assets are junk. [see e.g. the merideth whitney presentation i posted in another thread] when are they going to investigate manipulation to the upside, e.g. painting the tape at the end of each month and especially at the end of each quarter? never.

paulson wants a blank check to spend what he wants on the gse's, without any demand that the stockholders get wiped out or the bondholders take a haircut. privatize profits and socialize risk.

i've never been a conspiracy theorist, and i'm still not, but i'm also becoming more and more convinced that you don't need a conspiracy theory to believe that the deck is stacked to produce payouts to an elite at the expense of the rest of society.

What do you think of the WFC accounting for deliquiencies?

[LargoWinch]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

[...what Don Coxe calls a triple waterfall decline.]

well said GRG55


[...but that doesn't mean they are healthy; just means Canadian banks have treatable skin cancer instead of lukemia.]

and again: well said.


This is a challenging environment indeed then: everything seems overbought (commodities) - what is down substantially will likely go lower i.e. financials and inflation is high... confusing indeed.