Friday, July 11, 2008

Indy Mac now secretly run by the government.

So within the next few hours, the United States government is going to inform us that the FDIC now commands IndyMac (IMB).

When I shorted this company publicly in CAPS in January of 2007, IMB was trading at $36.29. Today the FDIC has secretly (for now) assumed command and trading has been locked at $0.28 per share. That's a gain of 99.17% assuming you didn't buy puts. I've been half-heartedly updating pics on Motley Fool's CAPS website since it began. It is interesting to go back and look at all my housing shorts and reading the comments from Californians claiming "there is no bubble." For those of you who don't play CAPS, it is an easy way to keep up with my picks. I am ranked around 200th out of 60,000 people.

So everything is being taken over by the taxpayer. Funny how Republicans/Libertarians work, isn't it? The profits should go to the CEOs (with a small amount going to the shareholders), but the enormous losses should be paid for by the tax payers, because when the Republicans got their way and kept "big government" away from regulating them, they got too big to fail and did things far too risky, and now they need to be bailed out to prevent total systemic collapse of the U.S. financial system. So we assume all the risks and they keep all the profits?

Are you scared yet? You should be. You want to know how to profit immensly from all of this? Wait for my next post.

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