Sunday March 16, 2008 – Go straight to jail Schwartz, do not pass go. Do not collect $200 million

Alan Schwartz (CEO of Bear Stearns) I hope you go straight to prison. You lying piece of poop.
Last week all was well and they did not face “liquidity issues”, I could live with that. So I bought some slightly bearish calendar positions. That was $1500 down the toilet. Alan will probably get off with a $150 million dollar golden parachute. Mr. Schwartz, NEVER come to Breckenridge. You are not welcome here. You belong in prison.
Jimmy Cayne screwed it up, but Schwartzki lied about it. Both of you SUCK.
I like the way Tim Knight puts it on his blog Slope of Hope
Now the S&P futures are down 2%, and the Fed made an emergency rate cut of .25% effective immediately. Then get another chance to cut on Tuesday. The dollar has dropped further. Gold has risen, Oil is hitting new highs. Inflation is here. Damn. At least I filled up my car at $2.96/gal this afternoon. That should tank should last me 2 weeks.
I normally don’t weep for billionaires when it comes to money (and I won’t start now), but how about Joe Lewis?
Joseph Lewis, the billionaire investor who bought 9.4 percent of Bear Stearns Cos. last year, lost $1.16 billion on his stake after JPMorgan Chase & Co. agreed to buy the securities firm for $2 a share.
Lewis, the New York-based firm’s second-largest holder, paid an average of about $107 apiece for 11 million shares, according to a filing submitted last year to the Securities and Exchange Commission. The stake has plunged 98 percent in value since the purchases. Bear’s biggest investor at year-end was money manager Barrow Hanley Mewhinney & Strauss Inc., whose 9.7 percent holding has fallen by $991 million. Holy haircut Batman!
Joe Lewis (born East London in 1936 or 37) is an English billionaire who lives in Lyford Cay, Bahamas. Lewis is the 369th richest person of Forbes The World’s Richest People list 2007 (NOT ANYMORE!!!). The loss is almost half his $2.5 billion fortune, as estimated by Forbes magazine in its 2007 survey. Lewis WAS listed as the 16th richest British person in Sunday Times Rich List 2007.
My bad for not getting out for a 50% loss. I should have got out when it dropped below my 50% target. Damn it. Now I am taking the full loss, although it is spread lightly through 4 accts. One last thing, I just put on a fraction of percent of risk due to the speculative nature of this trade. Thank Jesus.
In lighter news. My GS bullish calendars are now heavily at risk. The market should crash about 1000 points in the morning, and I am now 85% in cash. I should be 95% at some point tomorrow. I am delta negative, but with my calendars that can change at the open. How can one invest in this market if the CEOs can flat out lie? The market may not stop falling. I plan on making this BSC money back when we bounce off the previous S&P low. We should see a bounce, and then all hell will break loose. The next few days are going to be bloody. Bring it on!
Here is my Monday morning update:
I am clawing back from friday’s losses.
The morning gains were made with a 1 to 6 A/D line, and relatively light volume. Bearish
GS- Sold Mar/Apr 165c calendar for 5.15. Made a .20 profit, even though the underlying was $8 less than what I paid for it. With earnings tomorrow, I was squeezed out of my 170c calendar positions. I am mad at myself for this. I could have sold them out from a profit this morning, instead I took a 30% loss. Sold for 4.15 and 4.3. Very Disappointing, as if I had waited for 15 minutes I would have been able to do much better. And I knew it. Horrible trading on my part.
APOL – Sold 3 units April/May 60p between .91 and .95 near the open. I purchased these on friday morning for .75-.84. Very pleased, even though the underlying was slightly against me. The volatility skew was massive, and I was willing to take this one on.
APOL – Bought 1 unit of Apr/May 55p for .77. Sold it for .87. Sold last unit of Apr/May 60p for .80.
SDS – bought 1 unit @ 69.5, sold @ 70.76.
I am so very bummed out today. My acct is flat on the day, I have missed trades, and screwed on GS. I should not have lost money on that trade. dang it. And now that the day is done, I am in 88% cash. I have not seen too many appealing setups for more than a day trade, especially with the Fed announcement tomorrow. The decks are cleared, and I am ready for some wild action at 2:15 EST. I would like to see a lift right into the 50 day MA, and the bottom of the February consolidation channel.
Oil Shorts look good, and overall market shorts.
As I prepare for tomorrow, I am looking at JPM. Fundamentally, they were solid enough for the Fed and the BSC trade. There is now a Fed put on the JPM business. I am not sure which calendar I want. Either the 45 or the 42.5. Maybe both. Here is the Apr/Jun 42.5c breakevens.