Deep market Thoughts…Fannie Mae's Magic Act is OVER!

Posted by Howard
on November 19th, 2007

Not much to say about the shittkicking that the financials took today other than…duh!

Goldman ANALysts took a few moments away from adding up their bonuses to declare Citibank a ‘sell’. That’s just humorous at this point. If you expect more from research at this level, you are VIC .

Elsewhere in financial hell, CountryWide (CFC) is about to become a single digit stock and the long painful decline of Fannie Mae continues – now under $40. I am trying to dig up all my old short sale confirms of Fannie Mae from the last 6 years to see how much I would be up if I held it. It’s plenty! I did nail the beginning of the end back in August but past pain kept me from shorting it .

Fannie Mae is one of my ‘Tells’ at this point. It is in freefall and rarely does so. The financials are in pure panic mode nd everybody get short mode.

CNBC was a trainwreck of television today. I caught a muted hour while on the machines at the gym. They spent a bunch of money going to Dubai to interview people in malls. Genius.

They were also a walking press release for Citibank today. As I twittered earlier, Citibank was pimping their Private Wealth business in Arab countries. As I see it, Citibank is saying they have run out of idiots to squeeze wrap and commission dollars from in the US.

Why not issue the press release that sums up how you really feel about things:

We at Citibank feel your mortgage pain and are working hard to blame the right person internally. When we find that person, we will all have someone to blame. We will destroy him/her, likely him. Until than, we must move on to people with real money…The people of Dubai.

In the meantime, you can only own Goldman Sachs in this sector if you must own anything .

Disclosure- No positions

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