I read this headline this morning, “Bear Stearns Makes $1 Billion Bet on Subprime Market Decline“, and laughed. Why would a company which lost so badly being long subprime, take six months to decide to go short it and then make a public announcement about doing so?
As The Big Picture puts it:
” While I do not expect us to be done with the subprime slime yet, I do get a “Is this a bottom indicator?” sense from Bear on this.
No one firm is a reliable fade. Still, one cannot help but wonder how ironic it would be if they caught leaning the wrong way in both directions . . .
I could not agree more.
No related posts.
