Couple of Updates

By Philip K. on October 6, 2009 2:08 AM | 0 Comments
*MGM slashes CityCenter condo prices by 30%.  Good move.  (Bloomberg)


*Just like that --poof-- I will have to officially end my two day recommendation of longing the S&P by today's closing price.  I'll consider Monday's 1%+ gain good enough.  According to my system (you should be suspect whenever anyone mentions system), the market inefficiency has been quickly corrected.  This doesn't mean I'm short.  I'm definitely still long, but that's for various reasons that I just don't want to get into right now.


*The possibility of war with Iran is very real.  Intrade has a proxy-ish estimate of about 7%.  By my definition, an air strike against Iran is war.  That old saying about war being good for the economy was a fluke of an instance to describe World War II.  Any war with Iran will be bad for this fragile market and economy.


*Fuck you Robert Benmosche.  AIG's CEO is thumbing his nose at the US Government.  (Money).  The problems of moral hazard has just got worse.  Freerolling on limited liability and government guaranteed programs has lead to an unchangeable culture of moral hazard.  2008 Credit Crisis, LTCM, Bear Stearns.  We'll be seeing these events again, if Bob's attitude is representative of other executives.  

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