Should I Feel Guilty?
I bought a load of Hartford Insurance (HIG) calls earlier in the week at $1.50 a pop. Due to bizarre news, they now trade well over $3 each.
The bizarre event is that the venerable Hartford insurance firm is buying out a Savings and Loan. Not a big S&L, but some run of the mill Florida joint for a paltry $10mil. The execs spend more than this on the corporate jet each year, I'd bet. Yet, now HIG is eligible for TARP as it is now a "bank" and will get to steal (sorry borrow) billions from the taxpayer... i.e YOU. Result, stock rockets 20% north today. Should I feel bad for making $3,000 (and counting... I'm still long, and you can bet we'll gap north Monday) off the taxpayer? On the one hand, I feel like I stole some of your tax dollars... but on the other hand, I'm paying for each bailout, so I might as well profit from it right? I wonder, who lost the $3,000 I made directly... short sellers? Option writers? Somebody else? Anyway, I've got another semester of tuition paid for--should I feel bad about how I acquired it?