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Wednesday, January 28, 2009

Financials on FIRE After Hours

Some news came out after hours and is sending bank stocks higher. I have a feeling we could see a very strong open, but it may die off mid to late day. I will be selling most of my covered calls as early as possible bargaining for the best premiums. I hope the rally continues, it would be excellent for the market!

Earlier tonight while looking online I typed in the Google Finance BAC message boards about how I feel mark to market accounting should be done away with, well some other writers disagreed with that... Not like I care, I still stand by that honestly because I think it will get us out of this mess the quickest, cheapest, and easiest! I have pasted my post from the message board below. Click on the link to view that message board discussion.

ME at 6:44 PM:

Do away with mark to market for the short term... Don't nationalize
banks! No I don't see this stock at $10 unless this happens...

ME at 12:29 AM after numerous replies:

I am just saying they should do away with mark to market at least for
time being... Why mark assets at $0 when they haven't been realized
losses yet! Technically all of us that hold BAC at am unrealized loss,
haven't lost a dime, because it is not out of our portfolios yet... If
you don't take the loss realized, it is not a loss yet! When the asset
sells you can then see what the loss/gain is. We wouldn't need to
throw billions at banks and continue to see it disappear before our
eyes. This way would be a lot easier and cheaper! Why should we keep
granting billions to the banks when the problem can be solved without
the tax payers help! I stand with many brilliant minds on wall street.
This is not a transparency issue anymore, we already know its bad! Why
make these banks suffer to the point where they'll be nationalized?
Simply to make shorts happy? If banks get nationalized you'll see the
entire market sell off due to a lack of confidence; if they take over
banks why can't they take over other sectors etc...?

Option Maestro



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