Relax

Here in the good ol USSA (United Socialist States of America) our buddy Hank Paulsen decided that public funds should not be used to bail out a failing private company...that is, today.

Of course that didn't stop the use of public funds to guarantee funds to back Bear Stearns' purchase, and of course we are in the process of spending darn near 1/2 trillion dollars nationalizing Fannie Mae and Freddie Mac...but what's a trillion dollars between friends? After all, we can just print more, right?

Now here's another pop quiz:

Why aren't the heads of Bear Stearn, Fannie Mae/Freddie Mac and this Lehman bozo Fuld doing the orange jumpsuit clad perp walk with handcuffs into some Washington Courtroom?

After all, Enron was just a little scam compared to the global scam that has been committed by this bunch a greedy liars.

Answer: the regulators and the regulatees are FRIENDS and coworkers. The regulators actively encouraged (and legislated) mortgages with no collateral and no credit.

IN THIS INSTANT, THERE IS PRACTICALLY NO DIFFERENCE BETWEEN THE LYING BANKERS AND THE LYING REGULATORS, BECAUSE THEY ARE/WERE IN ALL SENSES OF THE WORD CO-CONSPIRATORS

So in my opinion, that is what makes all these promises of a government led fix all the more laughable because THEY CAUSED THE PROBLEMS IN THE FIRST PLACE BY ARTIFICIALLY LOWERING INTEREST RATES, EXPANDING THE MONEY SUPPLY, AND LOWERING LENDING STANDARDS.

OK, having said that, here's a quick update on the portfolio: I am all in bear funds at this point because they are the only funds in technically great shape

Today I added SDP and DUG into the mix. So now we have

SDS
QID
TWM
FXP
SSG
SDP
DUG

There is still plenty of ready cash on the sidelines in the event of more setups (ie a little rally to make it worthwhile to add to short positions)

I am making an effort to go slow and buy in small amounts as we pyramind through this next down leg in the overall market.

We pulled in roughly 3% today which is fine; I'm not trying to go crazy with leverage because at some point I anticipate a violent bounce. I'd rather be conservatively aggressive, whatever the hell that means.

But I'm overall very satisfied with my trading system for the moment.

But let us conclude with pretty baby pictures...after all that's what is important here:


This is Alexandra at the Princeton Ballet Studios. I thought it was a rather artistic pose.



And this is Alex helping out at a recent American Repertory Ballet class.

More cuteness later!