Broad Oak: your emotional support animal

Wednesday, September 17, 2008

Financial stocks at risk

Denninger explains why rescuing banks and insurers mean the shareholder should exit now. Perhaps this explains the ruckus with HBOS?

UPDATE: looks as though Lloyds is angling to buy HBOS!

2 comments:

dearieme said...

He excels himself in that piece. But a question: if "shorting" and such is really taking one side of a bet, then if it's a sure thing, why does anyone take the other side of the bet?

SACKERSON said...

I'm not sophisto, DM, but I gather that some of the players do combinations of "long" and "short" on the same stuff - like both putting and laying ante-post on the horses in a number of bets spread over days and weeks. "Two views make a market" - there will almost always be someone else betting that it can't be as bad as you think, or that it's worse.