The Market Is About To Plunge (Day 6, Vol. 4)
May 05, 2009
– Comments (42) |
RELATED TICKERS: GM
, DE
I have better things to do, like study for final exams, than lecture ignorant feeble-minded posters that somehow think that the parade of bullishness will continue unabated despite the ongoing depression. That said, I did say I'd keep posting until this bear market rally distinctly ended. Well today, we fact have exciting news:
GM IS DONE! If you have common stock, you own 1/100th as much as you did yesterday. GM has decided to do what we all knew (well, we being people with IQs over about 65) all along was going to happen and declare their common stock worthless. While I'm surprised there is no bankruptcy yet, this is still a positive sign.
However, proving again the simple maxim that my cats know more about the stock market from overhearing my ramblings than the average trader, the futures have started dropping as traders had not "priced in" the blatantly obvious. The futures are dropping...
and dropping
and dropping
and dropping
and dropping
and so on
With the S&P futures down more than 2% already this evening and signs pointing to more exciting activity such as the hareraising volatility in the FOREX market tonight, it appears that we finally have a top in the S&P. With the death of GM--it should open well under 10 cents tomorrow, people will start thinking and realize all the stock they bought in ongoing PROSECUTABLE CRIMINAL SCAMS such as American Krapital (ACAS) and Bulls*it Homes (BZH) is worthless too. Oh, and how about Bank of the American Government? Needs $30 billion in capital yet you ignorant fools are buying it at $10 a share? Are you nuts? Are you mad? Investing in a ponzi scheme is smarter than that!
Finally, it appears order may return--all the garbage like S will return to the land of magic pennies as the S&P heaves, sputters, and then crashes down into the 600s. The cheap-money stimulus crack induced high you bulls all feel will turn into a long and painful hangover. I fear the brain cells you lost during this druggy high will be dearly missed as you panic the next time we hit the skids.
(Sorry for the tone everyone--I'm a little angry. I, as a bear, feel the same emotions you bulls felt with the market at 666. The hopelessness, confusion, and rage you felt courses within my every heartbeat. Is America and in particular the few of you who are morons reading this that taunt me with oblivious comments really so stupid as to be buying stocks NOW? Particularly stocks in clearly and obviously bankrupt companies like GM? It makes me weep.) Back to studying. Enjoy the blood red futures, I know I am.
P.S. a clip from Karl Denninger's blog post on GM:
"
You didn't/don't hold the stock, did you?
If so, I hope you sell tomorrow, assuming it opens over 2 cents/share.
Seriously.
No really, I'm not kidding.
In a filing with the SEC late this afternoon it was disclosed that the GM "restructuring" would:
Increase the number of authorized shares to 62 billion (!) Reduce the par value to one cent. Effect a 100:1 reverse split for the existing shareholders. The effect of this as disclosed would be that the existing common shareholders would have their holdings reduced in value to one percent of their current market value.
So as of 4:00 Eastern today, your $1.85 stock price would be.... drum roll please..... $0.0185 per share[. . .]
PS: You think there's a thing called "senior debt" in this country any more? Uh, no. There is not. The Capital Structure no longer has ANY legal meaning. Guess what this does to the banks in particular (anyone with government "rescues") along with the potential for ANY firm in the US? Yep."
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