Nice Profits on the Call

In February 2000 one of the Street's most powerful executives petitioned the slimey old SEC (have NO respect) to allow his firm and others to raise their levels of leverage. He wanted the commission to alter something called the net-capital rule, which he said "is the single most important factor in driving significant parts of our business offshore." Four years later the Bushy neocons amended the rule, allowing Wall Street to borrow even more money to finance its businesses. At the most aggressive investment banks leverage ratios reached 30 to 1; for every every dollar in equity capital it had, the firms were borrowing $30.00

That CEO was Henry Paulson, then the CEO of Goldman Sachs, now the U.S. Treasury Secretary. All of this occurred under a Republican led judicial, congressional, and executive led focus, long before Democrats took over Congress.

Bill Clinton was part of this, as he allowed Greenspan to lie and use his Ayn Rand thinking, and he allowed the de-regulation. It worsened with a Presidency only interested in "victory", at any cost. We were led by those that "gained" from this. KNOW that.

It is important we know WHO caused these problems. False facts may otherwise mislead our small intellects again. Sarah cannot be President, and there is a 1 in 3 chance. Oh, my God.

From a subscriber in Israel:

"Hi floyd,
I thought you may be interested to read this article, which is in line with your (our :-) ) political thinking."

http://finance.yahoo.com/banking-budgeting/article/106023/Five-Myths-About-the-Election-and-the-Stock-Market

From a subscriber after reading my Atlantic article on TSA in yesterday's alert:

"Floyd, often I think you are 'out there' until you prove to me how wrong I am. When I finished the article on TSA and our airports I gained SO MUCH DISRESPECT I finally began understanding what you say when you tell us to 'not believe what you are told.' I was shocked, and appalled. Thanks for sharing this information"-BLD

GM, which now makes a HYBRID Cadillac Escalade (please laugh) and Chrysler, big on the muscle cars, have now filed with the FEDS for aid. Of course we must bail out bad businessmen that make crap cars and didn't catch the market right, it's the American way. Sigh.

The market Monday was classically schizophrenic, with highs of 8639 and lows of 8135. We were able to profit well on the Nov440C, buying as low as 18.40 and selling to 24.00. Puts were also profitable for us, but took a trader with true "online regiment" to catch it, and we'll keep this position open.

"Nice profits on the call. Bought 10 and made 3.00 per contract quickly, got out, and sat back. What a market". Jerry from Des Moines