Trading post-bankruptcy bounces Message Board

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Microcap & Penny Stocks : Trading post-bankruptcy bounces

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To: RockyBalboa who wrote (74)	6/9/2009 2:28:08 AM
From: Real Man	of 93

I'm not trading GM, but if I did I would go long this week. Just way too scary to get long something completely worthless. I already did it once in May. I made a profit, but I lost sleep. GM call options was it. -g- That said, GM stock trade is not any worse than an options trade. The dynamics is of course short squeeze, as the stock has been overshorted. Many of those long bond are also short the stock. As they get paid, they will cover. So, if someone is liquidating a GM bond, they buy GM stock. At this point in time it's just a "who knows" trade, a gamble. Got to die soon. But a few sessions ago it was good -g- Things sure have changed since the last recession as derivative markets really took off since then. Now it appears they keep the dead man walking a lot longer. The anger? I am angry the automakers died. I am angry the government has been in bed with Wall Street and is bailing out speculators while letting the real economy collapse. 2 page application for TARP for financial companies, GM could not get a loan. Why did the automakers die? Because the credit bubble made it unprofitable to run a normal brick and wall business. Not to mention lives affected. If we let that happen, and we did, things are going to get much worse. What is the dollar worth without the real economy?

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