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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (24954)	11/8/2007 6:15:24 PM
From: carranza2	Read Replies (2) \| Respond to of 219919

The reason to short financials is a little known accounting rule change, FASB 157, which will require the valuation of subprime Level 3 assets to market not to theoretical scam models. And what is the only observable market indicator for all that toxic subprime ****? Why ABX, of course. And its down so low it needs to look up to tie its shoe laces. Roubini has gone absolutely nuts about this point. And in the Kingdom of Doom, he is the King and we're mere footsoldiers. Nonetheless, even if Roubini is off by 75%, there will be lots of juicy moolah to be made shorting financials. rgemonitor.com But there is always a catch to this rosy scenario. There is always a catch for something so obvious, isn't there? In this case, it has to be crony capitalism which will/may rear its ugly head. I don't see Benny and the Feds or Paulson letting the implementation of FASB 157 on November 15 - mark that date - crunch a bunch of global banks into dust. Look for political pressure of the magnitude we mere humans never see, but which is causing The Force to almost score on the Richter Scale, to be exerted to have FASB 157 either not implemented or 'delayed.' But maybe not, we are talkong about accounting and transparency. Any effort to make things even more opaque than they already are, especially since even no-name guys like me can see what is happening, would be deadly to the 'integrity' o financial markets. Buy your ticket, take your chances. I'm long SKF.