Financials Back to Zero?

[stocktrader2007]

If Bailout II doesnt really solve the issues the financials are facing.. We might see nothing other than zero in all mortage hit bank stocks.. Possible wipeout of C,BAC and AIG??

 

[Ribs]

what I like about great depression if it ever happens in my lifetime

is this

I will have plenty of company in soup lines

me and other traders can crack liquidity jokes as we wait for soup and a small piece of bread

 

[nazzdack]

Quote from Ribs:
.......soup lines......and soup.

You can also brag about your "long" position in CPB.

 

[makloda]

Quote from Ribs:me and other traders can crack liquidity jokes as we wait for soup and a small piece of bread

Market inefficiencies tend to gain strength during big economic dislocations. As long as your broker(s) stay afloat, you should do very well as a trader.

 

[asap]

Quote from makloda:

Market inefficiencies tend to gain strength during big economic dislocations. As long as your broker(s) stay afloat, you should do very well as a trader.

that's probably the reason most hedge funds are doing very well!

 

[makloda]

It's pretty hard to take advantage of small and mid cap price dispersion if you're handling $10bln.

Much much easier if you're handling just $1m.

 

[asap]

Quote from makloda:

It's pretty hard to take advantage of small and mid cap price dispersion if you're handling $10bln.

Much much easier if you're handling just $1m.

imho, price dispersions translate into wider spreads and lack of liquidity. i dont see how those attributes can help you "do very well" irrespective of your size. but i am always eager to learn, so let me know.

 

[makloda]

Lack of liquidity if you're swing trading a simple $1m long/short portfolio of small and midcaps? Please.

Many of these stocks are turning over >$1m a day each stock individually, so easy to get in and out with baskets of a couple dozens of them if you're not day trading.