Black Monday

I guess my real point is..

Do you really think the US Government will let the banking sector go much lower?

Obama is a socialist who believes in governement intervention in such matters. as a banking crisis

Logic says that Uncle Sam will step in if things get much worse.

There is a limited downside, an unlimited upside here for banking stocks.
 
Quote from peilthetraveler:

hehe me too!


Think about it...You got two guys...one guy puts all his money in a stock when its at 100. Stock drops 73% and the price is 27 per share now. New guy says "Hey! its down 73%! Cant go much lower" so he puts all HIS money into that stock at the 27 dollar per share price and then the share price goes down to 1 dollar lets say.

The guy that bought at 100, lost 99% of his money
The guy that bought at 27, lost 96.3% of his money

If both guys started with 100k there is only a 2700 difference between their accounts now.

This is actually kind of funny, because I remember someone on this board that said something like "FNM cant go down any further...its already in the 20s!" Or those guys on the peter schiff video last year that said GS was a buy at 175 and it was a bargin! Look at GS now 54 dollars per share and its STILL trading at a premium i say! GS, based on last quarters results, is a FAIR price right at 51. Thats not looking forward, that is the FAIR value RIGHT now, with its earnings where it is, yet its still above 51. If you are looking forward, I would say the price should be much lower. They aint comming back next quarter. Their earnings are going in the toilet and no telling how bad its going to be next quarter. I know what you are saying...they have 40 billion in assets and their market cap right now is 20billion. If they liquidate...you double your money! WRONG! If their short & long term assets dropped in value just 5%...just 5%, thats it...no assets left. If it drops 2.5%? Then they are at exactly where their stock price is. You think if they tried to liquidated all their assets right now, the would get 100 cents on the dollar? They would get less than 80 cents on the dollar. GS is going down bad.

Ok...now i've rambled on too much. I always seem to do that...start on a topic and then 5 minutes later, im talking about something else...
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Well thats fine if you're looking at GS or Shittypuke. But getting into XLF here is not the samething as buying GS. In order for XLF to lose significantly more, ie down to 0 or $1 you would have to believe that the government and Obama will allow the entire financial sector crash which seems very doubtful! Frankly if XLF goes to 0 then the $1000 investment in a 100 shares of XLF is the least of your worries!

So while I agree that thinking that any individual financial is cheap at these prices might not be a smart strategy but XLF at this level seems like an easy double if you buy and hold for a couple years....combine it with some simple covered call writing and its an easy double in a year or less.
 
I think the market is shaling all the bottom pickers loose hope
I have seen it before.
No one can nail a bottom
But when the buying come in there will be such a surge in Financial ( a Major short squeeze ) that we will wonder why we did not buy at those levels.
IT is only matter or time and the stock.
 
bond4tspanker- we have had enough of you.

we all know you are "the kin" and you are just a scrub who belongs on yahoo

just try someday and get a life---- you may actually like it
 
Quote from mxjones:

Yet another insightful thread by "bond tr4der" or one of his numerous aliases...

http://www.elitetrader.com/vb/showthread.php?s=&postid=2189536#post2189536

What a sad life you must have to start thread after thread of "doom and gloom" and bogus links weekend after weekend.
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mxjones, the wannabe be cop of ET and cock ryder of bond tr4der. :D

internetpolice.jpg
 
Uh, a little more than "some" doom & gloom is priced in. Go back to beginner's logic 101....

Quote from short&naked:

Just because some doom and gloom is already priced in doesn't mean there isn't more to come.

I love this beginner logic, "it's gone down 73% already, can't go down much further!"
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