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Friday,
March 13, 2009
(Cont'd from
above)...
Jim (cont'd):
How are these
killjoys… and what
is their agenda… I
used to run a hedge
fund… I know how the
bad guys think… but
now I work for you…
so I am going to
tell you what the
insiders to know…
who wants the
markets to go down…
alright, some are
the underinvested
mutual fund managers
who need the market
to come down so they
can get in at better
prices… they are
just routing for
things to go lower
temporarily… but
then there is the
other group… the
group that wants to
see stocks fall… the
hedge funds… hedge
funds that have a
field day with the
endless declines… at
your expense… these
hedge funds by the
way, these mangers,
they exist in a
total bizarre world…
they like em ugly…
because right now
they typically don’t
have more than 50%
invested max… and
they are betting
against more
companies than they
are in favor of…
these guys are
hoping for the exact
opposite of what the
rest of want to see…
those of us who just
want to make some
money with the
market going higher.
Why would they feel
that way… first a
lot of them are
short a lot of
stocks… betting
against you and your
stocks to profit for
themselves… and if
they haven’t covered
their short
positions and gone
long yet, that is
Wall Street
jibberish for having
bought the stocks
they were selling
back, then I am
guaranteeing that
they routing for Tim
Geithner to flub it…
they are looking
forward to more
anti-business
rhetoric from Obama
that could drive
stocks down… in
other words, the
hedge funds that are
still short need
help from
Washington… the kind
of help that wrecks
stocks… they were
most likely
chagrined when Obama
extended an olive
branch to business
yesterday… they
probably couldn’t
stand the positive
talk today by Larry
Sommers, who gave an
upbeat update about
things that are
going right in
business… and how
the administration
will do what is
necessary to have
that continue… I
almost thought a
love fest had broken
out between the
administration and
big business… I am
sure the shorts felt
the heat of the
bulls.
Second, these hedge
funds are looking
for China to get
killed… they want
copper to go done,
hardly… they want
oil to absolutely
plummet… why, they
want signs that the
world economy is
weakening… that is
not happening… it is
a win for the goods
guys.
Third, the hedge
funds in this
position needed
retail sales to be
absolutely terrible…
they needed GM to
ask for more money
desperately… to meet
payroll… not a
return of $2b to the
government… they
despise the fact
that retail sales
were slightly better
than expected… two
victories for those
who want stocks to
go higher… and pain
for the people who
want them to go
lower.
Fourth, they needed
to see Bank of
America to go the
way of Citigroup,
with a government
stake in its heart…
instead we heard
that Bank of America
is going to make
money… we even heard
positive news about
an easier going
version of mark to
market accounting…
that says the
regulators won’t
push banks into
bankruptcy in
nationalization…. we
also heard that…
look out… the shorts
principle weapon…
the ability to short
stocks without
waiting for an
uptick may be going
away… which would
also crush the ETF
of mass banking
destruction… the
dreaded UltraShort
Financial Proshares
SKF.
Fifth, these guys
who want stocks to
go down need to see
more companies file
for bankruptcy… as
well as more Madoffs…
more Stanfords… to
undermine our faith
in the market… even
Madoff going to the
clink struck fear in
the shorts hearts
that the public
might like the
markets now… now
that justice has a
pulse.
Sixth, the hedge
funds really need to
see Warren Buffett
be scared… instead
he was confident…
they needed him to
cancel his terrific
interview with Becky
Quick on CNBC…
instead he came out…
he came out and
inspired confidence…
good for you… bad
for the shorts.
Seventh, they needed
to see GE (parent
company of this
network)… get
stripped of all of
its good ratings…
right, A, A, B, B,
C, C, off the honor
roll, D, D, parent
conference with
teacher… no, instead
it got a minor
downgrade… and a
stock that they had
been keying on to go
down…. rallied.
Eighth, the hedge
funds that were
still short needed
more analysts to
downgrade stocks…
like the untimely
downgrade of Cramer
fave Hewlett
Packard, which is of
course at $25, that
made a lot of sense…
they needed to see
strategists come out
and say that they
were headed into a
depression… and make
no mistake, I bet
there are plenty of
people pushing
behind the scenes
for exactly that…
where is that guy
Roubini, the Mr.,
the Swansea, the
Ugly Duckling, I
don’t know it is a
fairy tale… I got a
little more about
fairy tales in a
second.
Nine, the people who
want the market to
go down long term
needed to see the
market up huge today
so that they could
reverse… could
reverse and start
causing some despair
among the buyers…
these guys need you
to feel buyers
remorse… and for
once this week we
didn’t have any.
Tenth, these
negative Nancy hedge
funds need to see no
deals… no takeovers
happening… because
that would mean no
new money coming
into the market…
instead we got $193b
of pharmaceutical
deals… and you can
bet that all of the
new money is coming
right back into
stocks sending them
higher… even worse
for the bad guys…
the stocks in the
acquirers rally… no
doubt encouraging
other companies to
take the acquisition
game… so soon, we
will be back to
merger Mondays…
remember those days…
merger Mondays… just
you wait… those are
the short sellers
nightmares.
How do I know that
this is what the
hedge fund who got
caught with their
shorts down were
hoping for… because
I used to be one of
those guys… I used
to run a hedge fund…
they need chaos…
they need the
plagues to happen…
chaos, chicanery,
hardship and pain…
you know what they
are hoping that
winter never ends
and spring never
begins… these hedge
funds are anti-acliesiesties…
for them to
everything there is
not a season… they
don’t think that
there is a time to
kill and a time to
heal… they just want
a time to kill… a
time to break down
and a time to build
up… not for the
shorts… they want
the time to
breakdown to be
permanent… whatever
you are hoping for,
they want the
opposite.
Now, okay,
seriously,
seriously… these
hedge funds… here is
a couple of things
that they wish… they
wish that Bambi had
got shot with his
mother… they wish
that Heidi had got
shanghaied into the
slave trade… they
wish that Goldilocks
had made for a tasty
bear meal… they wish
that Little Red
Riding Hood was wolf
meat… that all three
of the little pigs
were turned into
spam… that
Cinderella’s evil
step-sisters marry
the prince… that the
monster on Zombie
island ate Scooby-Doo…
that the Wicked
Witch made mincemeat
out of Snow White…
and get this, above
all what do they
want.. they want the
Seven Dwarfs to get
mowed down like
gangsters in the St.
Valentine’s Day
Massacre… or at
least like Sonny
Corleon at the phone
booth, and Moe Green
right in the eye… it
is my job, my job to
expose these
shenanigans… even if
some would say that
I am in bed with the
people who want
Dorothy to be
crushed by her
house… or maybe be
turned into people
chowder by the
Wicked Witch of the
West… but the
tyranny of the hedge
fund short sellers
seems to be coming
to an end… they
endless spiral of
bad news has been
broken… and once the
hedge funds and
mutual funds think
it is okay to plunge
back into the water…
you don’t know what,
they think it is a
game, they think it
is a game… then they
give up on their
short positions and
it is time to go
long… then they will
panic and come in
with billions
blazing… perhaps
taking us up to Dow
8,000 before things
are thru… in order
to make up for their
new found losses
that they have
absorbed with their
number one activity…
shorting the banks
during this
miserable period.
Here is the bottom
line…
▼ ▼
▼ ▼
▼
 The Bottom Line!:
There are a lot of
hedge funds that
wanted to break this
market but they
didn’t get the news
they needed this
week… this time
regular investors
won… and because the
hedge funds and
mutual funds will
eventually copulate
and switch sides…
betting for
companies rather
than against them… I
think we go still
higher.
The big money wants
this market to stay
broken, but it looks
like Main Street
could win this
round...
Okay, the Dow was up
54... the big money
guys want this
market to stay
broken… but it looks
like this rally I
think is here to
say… and memo to one
of the Stewarts out
there, I am so sorry
about having some
fun and
entertaining… next
time I promise to be
more like Kenneth
Clark.
[verbatim recap]
▼ ▼
▼ ▼
▼
Jim went on after
this segment to take
questions from
callers, and
responded with his
comments...
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Q:
Who are the short
sellers that are
making all of the
money in the down
turned market? And
could we stabilize
the market by
pumping up the
capital gains by
short sells to say
50%?...
Jim:
Well, that is an
interesting thing
whether there should
be symmetrical
gains… I actually… I
don’t want that… I
do want the short
sellers and the
hedge funds, I
totally agree with
Obama on the idea
that their gains are
ordinary income… and
just so you know
that as a hedge fund
manager for 14
years, my gains were
all ordinary income…
and the people who
are taking it as
capital gains, the
government should go
after them… they
should just a build
a case… you don’t
even need to change
the law… the IRS
should go after
them… because every
right thinking hedge
fund manager knew
that those are
ordinary income…
that is our
paycheck.. it should
never have been
capital gains.. and
the government
should never have
allowed them to get
away with it… but
the previous regime
absolutely insisted
to give the rich at
the hedge funds a
clean break… bring
back the Uptick
Rule… get rid of the
ETF’s of mass
destruction… and we
will be fine.
```````````````````````````````````````````````````````````````````````````````````
Q:
I have four pawn
shops and two retail
stores in New York
City. Lately the
pawn shops have been
slow, but the retail
has picked up. Most
people pay with
cash. Can you tell
me what you see in
the future?
Jim:
Yes, I think there
is a major change
going on as people
begin to recognize
one that inventory
levels got so high
that a lot of
companies had sales
that made it so that
if you had been
waiting or holding
back for 18 months
because things
aren’t good, you
just kind of had to
take advantage of
it… second, it is
really dawning on
people that their
heat bill turned out
to be lower than
they though, their
gasoline bill is
lower… so they are
beginning to spend
incrementally… and I
think that that is
really the
difference… and that
is why I think
things have gotten
slightly better.
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[verbatim recap]
[end of segment]
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