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Microcap & Penny Stocks : Trading post-bankruptcy bounces -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (74)	6/9/2009 2:28:08 AM
From: Real Man	Respond to 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?

To: RockyBalboa who wrote (74)	6/9/2009 2:56:46 AM
From: Real Man	Read Replies (2) \| Respond to of 93

Until policies are implemented to shore up the real economy and punish large credit bubble speculators, we'll see the whole country go down the crapper. SP500 will trade like GMGMQ, worthless but higher, as the banks flush with printed cash and unable to find anyone credit worthy to lend it to will start speculating on stocks, commodities and falling clownbuck, while the real GDP will sink to virtually nothing. When inflation trade that died last year is reborn, it will go into overdrive this time, and early 2008 will seem like a walk in the park. This is not fun to see.