Nov 20

Millions of Americans are waking up to margin calls right now. We are right at the Oct 10th low and anyone that could hang on until now is finding out that they can’t. They have two options….put more money into their account or sell. If they do nothing, their broker will sell their stock. Hopelessness is setting in and people that buy and hold are getting killed. I feel bad for the baby boomers that have lost so much money in their retirement funds and it will not come back for a long time.

I will tell you someone that I don’t feel sorry for….Rick Wagner (my new name for him is Rick Wanker). Rick Wanker is a disgrace to the title CEO. This guy has no shame or humility. I listened to GM’s Q3 conference call, saw some of the hearings this week, read the letter from GM and seen many interviews from Mr. Wanker. Wanker doesn’t know the first thing about leading. A true leader own up to mistakes and doesn’t blame anything or anyone. If a leader can’t admit to mistakes made, he can’t fix them. Wanker has done nothing but place blame on others. Wanker is fighting hard to keep his job and really thinks he is doing a good job. Have some pride Wanker….you failed and it is time to fall on your sword. If Wanker was the Captain of the Titanic, he would have been the first person on a lifeboat (he proved this the way he treats GM dealers) and he would have blamed the iceberg on global cooling. He makes me sick!!!

Now what I think is going to happen today…..this is a tough one. We are right at the lows which mean we could really break and go down fast with force selling or many people could cover and push it up. This makes me think that we will go down in the morning and rally at some point in the middle of the day. I think it is prudent to 50% off shorts and add a little to SSO. Nothing goes straight up or down. I sold 50% of my SDS yesterday at 113 and added half of that money to SSO at 22.50. I’m now in a great position to win no matter what the market does. I suggest doing the same.

Oh my God….I’m just reading a headline that GMAC files application with Federal Reserve to become a bank holding company. Do they have any shame? Wanker and Cerberus is a match made in heaven…or hell. Great move Cerberus buying 51% of GMAC at the top of the market in 2006. WOW all of these guys are terrible!!! What moron is investing in Cerberus?

I did see some good news today….Prince Alwaleed is increasing his stake in Citi. He saved Citi in 1990 and I believe he purchase a lot of Citi at $3.00 then. That is really good news and could spark more oil money. It will not save us but it is good news.