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    read more: #commenteroftheday, #finance, #wallstreet, #false, #valleywag

    madox

    I'm a pretty simple guy. Hand me a bottle of Two-Buck Chuck and a Xbox controller and I won't bother you for a couple of hours, if not, days. So these posts talking about the harbinger of financial doom is upon us is like trying to understand the Bush Doctrine — I don't get it. Thankfully we have today's featured commenter, madox, to teach, correct, and maybe make you a little bit of money:

    In a previous post I said I would shut-up... But I just can't help myself: Probably because I know more about financial implications than the average Silicon Valley individual:

    @sample032: It is a well-known "fact" that all banks (including investment banks) fail on a Friday: Probably because everyone is out glow-stickin' it up or something during the weekend.

    @deathbychichi: AIG wants government assistance because they don't want private companies to take-over aspects of their business and create spin-offs. Or it's like a methadone-addict asking for help as long as the help provides perpetual heroin. In other words: AIG insured junk-debt; and now they're looking for a cash-based way-out of their debt: Enter the Federal Reserve. Seeing that the Fed is willing to now buy stock as collateral from various companies, as well as sub-prime MBOs; I guess that... well, I really have know idea....

    Things are fucked.

    Anyway, for an investment for Monday, September 15, 2008:

    If you (the active investor) think that financials will go down in price; then buy the ticker SKF: SKF is a double-inverse of the financial sector.

    On the other hand, if you aren't totally sure about the Financial Sector losing value: Then for every one share of SKF that you buy purchase four-to-six shares of XLF; that should create a nice hedge.

    Lastly, if you honestly think that the injection of liquidity from the Fed, plus the creation of a liquid-pool of capital from the major Wall Street players ($70 billion) will off-set any decline in prices of the Financial sector, then you would be best- off buying XLF out-right.


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