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September 2008



Warren Buffett takes $7.5 Billion stake in Goldman Sachs

September 23, 2008 – Comments (7) | RELATED TICKERS: GS , BAC , GE

That represents roughly 20% of Buffett's available cash. For several days I have been discussing Goldman and the patent fact that it is grossly undervalued. When I say it nothing happes, the Craps gamers come at me with their pitch forks and Medieval Times costumes posting messages to me in DruidSpeak which are of course meaningless. The guys with the 98 or higher Craps scores , play the game in dollar stocks, even though they can't short them in the real world. That is not my style. I am a long term value investor and that has been tough this year when the markets are trying to destroy everything including stocks like GS, GE, and many others and Obama wants to raise the capital gains. hmmmm I wonder if he has ever owned a share of stock in his life.   [more]



Goldman morphs overnight to become the 4th largest bank holding company

September 22, 2008 – Comments (0) | RELATED TICKERS: GS , MS , BAC

The reason Goldman didn't want to buy a bank is because they didn't need to, they become one overnight without having to buy someone elses debt. The same with Morgan. So it looks like the big guys, especially Goldman are in great shape at this point going forward. Goldman's got lots of cash and the confidence issues of investors to the sudden dislike of the investment banker model have no more complaints. The has been visibility and that issue will be eliminated. Goldman has clean books and they now have access to Fed credit. Goldman already has customer deposits that are as big as third /fifth banks deposits and GS Bank USA has not even opended for business.   [more]



Suicide short sellers air supply almost gone

September 21, 2008 – Comments (5) | RELATED TICKERS: MS , GS , C

A lot of conversation has followed about the Naked Short sellers into the markets. Nobody can explain the new oddly aggressive shorters. Their trades don't make sense. I would call them suicide short sellers. Some have suggested terrorism is behind the shorts. Some Russian hedge funds are speculated to be linked with Middle Eastern or Persian money. One hypothesis that has not been presented is that many small investors may be mindlessly shorting stocks through their brokerage houses from their terminals at home. That would be a frightening thought, millions of minnows tearing the flesh off a cow. In some ways this reminds me of the Caps game.  [more]



There will be blood... Dow may be up 500 points today! Shorts doomed.

September 08, 2008 – Comments (5) | RELATED TICKERS: WB.DL2 , WAMUQ.DL , C

Revenge is a dish best served cold. Tomorrow morning we kill the serpent. The financial markets have been nearly destroyed by the SEC policy of allowing naked short selling. You know the pain. Many of the highest ranked CAPs players are just shorting everything. That is ok if you don’t have real money at stake. That is because there are a lot of stocks that you as an individual investor can’t short but a hedge fund that doesn’t play by the rules can short without first borrowing shares. It is a huge disadvantage to the individual investor.   [more]



"Goodbye old sausage!" Fed Gov coup d’état has nationalized mortgages and residential property!

September 07, 2008 – Comments (2) | RELATED TICKERS: GS , C

The SEC, Treasury and the Fed have just picked American’s pockets to the tune of 5 trillion dollars. They did in months what Al Gore tried to do with global warming following two years, a movie, and Nobel prize. Need I mention that was not the prize in Physics.   [more]



Are Naked Shorts killing KLIC?

September 06, 2008 – Comments (3) | RELATED TICKERS: KLIC , MER.DL2 , AMAT

Why isn't KLIC starting to take off? In a word, naked short selling and management that is oblivious.   [more]

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