Goldilocks Lives

Another day another big intra-day spike in the market. Today's bailout was of the monolines resulting in the DOW closing another 189 pts higher on top of Friday's anticipatory ramp-job. Rating agencies have reaffirmed the monolines fraudulent triple-A ratings on top of a large cash infusion into the black hole that is Ambac. More belief in fairy tales and happy endings by market participants.

Tell me this, how overwhelming is the exposure to toxic waste of these financial concerns (Citigroup, Wachovia, etc.) that they would be willing to throw a couple billion dollars at Ambac? It must be pretty scary.

This bailout is just another Wall Street shell game. It's all a matter of shifting some billions around in order to hide the losses. Problem is the losses remain and further obfuscation doesn't change that fact. You can get away with all this fraud because there is no regulation whatsoever. Actually, I'd go so far as to say that the regulators (and the Fed) are complicit in the fraud. They've certainly enabled it to go on and on.

So here we are with the indices right back where they started the month. I'm up 5%-ish. I've covered most of my shorts to preserve capital. Having done so may prove premature and I'm anxiously anticipating the opportunity to start selling again. Fact is I trade to put food on the table not to prove how right I am. Sometimes you have to err on the side of caution. Should the market continue to trade based on fairy tales I'll pack it in and go kayaking.