Darwin, I kinda dropped the ball not being short certain subprime lending shares, since I was aware of this problem and figured it would collapse sooner than later.
If major banking stocks start falling like jpm, c, fnm, fre, and others, trust me the entire market will fall apart and short sellers of just about every sector will be making $.
Very tough to get the large bank stocks falling as wall st is in bed with federal government and they know once a panic/fear starts its difficult to end.
Theyve been manipulating these markets for a long time and they arent going to stop anytime soon. However, the more and longer they manipulate markets the longer and more severe the damage will be.
A person not watching these markets daily would think by only listening to these dopes that oil was $15 bucks and other commodities had only increased 5-10% past several years.
The economy is now a one legged stool since housing has been main source of job creation the past several years and many people playing the refinancing mortgage games via bloated real estate prices.
In an inflationary environment like we have today, its tough to get stocks to fall nominally, but real returns are nothing close to what the naked eye is seeing. When markets start falling, the govt simply turns on printing presses and hands these large banks money to keep stocks artificially lifted. Its not a game that can last indefinitely, but one has to be very nimble trying to be a short seller.
Its much easier being long markets than short, but sometimes the best trades are made on short side.