After the Fed injected 1 Trillion dollars into the investment houses and banks, are you afraid to buy puts?

Question

I was about to buy signifigant put action until the fed propped up the markets with cheap loans to the affluents. How do you feel about that? If the markets had been left to their own devices and we all bought puts and sold them now, we'd be millionaires, right?

But now, I keep wondering, when the next big government bailout will come and destroy my attempt to make some serious dough off the losses of the big boys.

When there is propping up, it is not worth it, right! Gotta buy on the way up and sell on the way down. But if the downside is limited by the government borrowing, how do you determine how much downside there is? The borrowed money can be injected any time, right, buying back their own or cooperative shares with another house in trouble.

Answer 1

You should be buying puts on the banks and investment houses like there was no tomorrow.

These companies are mostly a house of cards that is over due to come crashing down.

Look at Bear Stearns, Lehman, Merrill, Washington Mutual, Citibank, etc.  They are all members of the "good old boy" club.  Their top execs meet in their exclusive New York Club and conspire together to do the same thing - sell junk disguised as AAA securities.  Everyone of them has been doing the same subprime, CDO, schemes.

They will all come crashing down soon, within a few months at most.

Buy puts on them;  short the stock.

Government intervention is NOT ENOUGH to stop the mess from exploding in their faces.

Answer 2

Dear Skahhh I say that it doesn't really mean anything when you see figures running wether you buy PUTS or Grass or Hay.  If you read John Perkns book, "Confessions of an Ecomonic Hit Man" you will see how these things operate and boy do they make sense.  You see he would have to give reports and these reports were "Fudged",  remember they over sell and play  and the Market is how the game of OIL is manipulated.  Martha Stewart can tell you a BIG STORY and others like her.  She paid a Price for the SINS

and LIES of the Ones that are dictating Bad INFO.

Helping out Bear Sterns should tell you something.  

I can remember the lines for gas in the early 1970's, my husband and I had to push my VW to gas station to get gas, and we were only allowed $5.  and before we got there we had coasted down hills, myhubby knew howto get the most out of my tank.(CAR TANK)They ran out not but two cars after ours.  

The big boys never lose, unless they know you the little man

that want to get some wealth from marlet playing, then they would take the lose because they gained your being in the

poor mans corner, and if you are playing  with pention plans or retirement money from anywhere, they hit hundreds of thousands in the same shape and WHAMMO!!THEY WON

BECAUSE THIS WAS THEIR AGENDA.

See How it all ads up, it makes sense. Judge Judy always says," If it doesn't make sence it must be a lie"  All the pieces are coming together.

Remember I didn't get even $300. from the stimulous, I only get money from STATE and FEDERAL, so I alreadys get their money.  That was just a fancy Tax REBATE.

I hope I HIT THE NAIL ON THE HEAD!!!

Peace!!

Answer 3

I didn't earlier

Answer 4

The FED doesn't have $1Trillion to inject anywhere.

The FED (Federal Reserve Bank) is currently on the hook for $500 Billion in mortgages they guaranteed for US banks and brokers. DUMB MOVE!

If any of those loans default, the US tax payer picks up the tab.

The FED has guaranteed the money on behalf of taxpayers.

This move by the FED was the government "back door" bail out. They are bailing out the banks and brokers who made bad loans. The USG is not bailing out, nor should they bail out individuals who made poor investment decisions.

See my posts on real estate and the markets from last spring 2007 to date. I had been advocating short the financials, and put buying all last year. Easy money is done. Now it's some work.

Careful short sellers.

Shorting now on some of these companies mean you are betting on a bankruptcy. The FED has stated they have effectively given the major banks and brokers a put (no failures) since the 03-17-2008 BSC/ JPM deal.

Answer 5

WOW....

The FED injected 1 Trillion dollars into the market?

Why didnt anybody tell me.  Im screwed.  How do you know this when the rest of us doesnt?  I dont know anybody that has heard about this.  Give me a bone man...  Throw me a link, that is huge.  That and the fed doesnt have that much money.

And thats not a UFO in your backyard its a weather balloon.  Good h**l are you serious?