The carnage today is unbelievable considering the fall these stocks have had already. Because I have the flu and can’t concentrate I am fixated on the prices as market cap evaporates. Thos that bought the deep dip, are buried by 20-30 percent in a few days and what was value just a few days ago, becomes…more value? Not for me.
If Warren Buffett steps in, I will pay attention.
I was talking to my friend Blair who lends money with me for a living and he was mentioning how all the signs were there for a few years. The market has quicxkly caugght up to the sheanningans. Most interesting is CountryWide reporting the higher delinquency in prime loans from 1/2 percent to 3.5 percent.
This is a good lesson for those wanting to learn about shorting stocks. The first break, while in hindsight the most important break, is not the one you need to catch to make money on an industruy or stock gone bad.