will not listen to this. It will not have it.

David Einhorn's recent book on Allied Capital shows the mechanics of fraud in one company that is now clearly pervasive in the financials as a sector. Allied simply refused to mark securities to market, giving a rationalization for some other price, one it made up.

The analysts let them do it.

As Allied fought his short selling, so Paulson and the SEC are doing the same on a massive scale. The battle is now. And Paulson will win for a time, because Wall Street will not have it otherwise.

http://mauberly.blogspot.com/

... game played on the world with many non-US entities ending up holding the bag. There will be a price to be paid for this. I strongly suspect that we are witnessing the beginning of an inevitable decline of the US financial institutions' dominance over the global marketplace.

down under tells of talking to the Aussie banks re any exposure to sub-prime mortgages months ago. He was told, 'no we don't have any exposure'.

so bank shares drop to $25.00, he buys.
bank shares drop to $20.00, he buys.
bank shares drop to $15.00, he still has cash so he buys some more.

but he is not too sure today...

he has asked the bank people wtf, and they told him, we did not know!

He is forecasting sales on par with Christmas 2007 for the next six months. anything above that is bonus, big bonus.

hahaha. 90%. Holy fuck.