Wednesday, July 23, 2008

Housing Short-Seller Will Start To Buy Bank Stocks

Randal Quarles has competition.

John Paulson, the money manager whose short-sales against the U.S. housing market helped him earn an estimated $3.7 billion last year, is now seeking to profit from Wall Street's search for capital to offset mortgage writedowns, according to Bloomberg.

Paulson plans to open a hedge fund by December that will provide capital to the world's biggest banks and brokers, according to two people with knowledge of the matter. His firm has hired employees this year to research securities firms such as Citigroup Inc. for long-term investment positions.

The New York-based firm's credit funds rose as much as sixfold last year, in large part as a result of shorting subprime home loan securities.

1 comment:

  1. Everyone is pumping the possibility of making money in the volatile markets today.

    And yet, in retail stock trading accounts, accounts such are offered by Ameritrade and E-Trade, typically 95% of their customers lose money year in and year out.

    And fully 80% walk away from the table with absolutely nothing exactly like every gambling addict.

    So, anyone who is telling you there's money to be made in the stock markets, or in the commodities markets, note how THEY are making their money.

    These games are rigged worse than state lottery scratch tickets.

    And there is no intuition or analysis that can tell anyone where the big money is going to start slaughtering the suckers at any given time.

    This is all nothing but a very sophisticated swindle, a sting that is going on every minute of the day, and in every corner of the market.

    Institutional brokers are high-fiving themselves as they slaughter the new suckers who've been lured into their fine mesh nets.

    And the government is in on it 100%