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Jim:
We have officially
entered into bizarro
world... where
laissez faire,
free-market
republicans have
become total
socialists with
pro-shareholder
faces. They have now
taken corporate
welfare for all, and
a bailout in every
pot, to a whole new
level. I've got to
tell you, I have
never seen anything
like it. Even the
democrats wouldn't
do something this
outrageous...
What am I talking
about?...
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Continued below...
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Wednesday,
October 22, 2008
(Cont'd from
above)...
The Fed and
Treasury are now
picking winners,
and telling us
about them
beforehand...
People
"familiar" with
the matter in
the Treasury
Department are
now talking
about investing
in
CIT Group, Inc. (CIT)...
a bunch of nice
guys, but a
company that's
totally
undeserving of
any bailout.
It's reported
six consecutive
quarters of
losses. It was a
$5 stock before
the news leak.
But that's not
even the
point... They're
saying, "we're
going to bail
out CIT" before
they actually do
it... so you
caught a 36%
move today, and
we know it will
go higher when
Treasury invests
in it.
These government
officials have
gone from
ringing their
hands about
moral hazard, to
picking winners
for you, telling
you about the
companies
they'll bail out
beforehand, so
you can get in
on the action
and make some
money. I think
it's the
ultimate in
socialist
capitalism. CIT
isn't even a
lottery ticket.
It's like if
there was a
Powerball
lottery, and
they told you to
play a certain
number, because
it's going to be
the only number
in the drum...
The Feds ought
to have lottery
scratchcards...
where every
scratchoff gives
you some CIT
shares. At this
point, the
Treasury is
literally giving
the money
away... So I've
been thinking...
I want to
brainstorm in
this outrage of
tonight. I'm
trying to figure
out who's next,
so I've come up
with one. You
know who's in
trouble?...
DPZ... they're
in trouble. The
stock's around
$6 bucks,
through no fault
of their own...
and we can
always have the
government buy
pizzas, or they
could buy you a
free share with
every slice...
two shares if
you order the
works!
MOT is at $5.
It's struggling.
Why doesn't
Treasury give
you 10 shares
everytime you
buy a phone,
just to stick it
to the Fins at
Nokia, or how
about the
cretins at LG...
S's in a jam...
another troubled
$4 name... How
about you get 1
share everytime
you text
someone...
I've got a whole
list of
companies that
could use some
federal
largesse... and
are every bit as
deserving as
CIT, if not
more.
Does all of this
sound crazy?...
It's no more
nuts than the
Treasury leaking
out that they'll
bail out CIT,
and letting
investors get in
ahead so they
can be showered
with free money.
I don't see why
they didn't just
put coupons for
CIT in the
morning paper,
instead of
leaking it
out... buy one,
get one...
The bottom
line...
The Bottom Line!:
This may be
pro-business...
it's definitely
pro-shareholder,
as anyone who
has been buying
CIT Group, Inc. (CIT)
here has
practically been
guaranteed a win
buy the Treasury
department...
but none dare
call it
capitalism...
[verbatim recap]
Read Jim's next Segment
here
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