Here is another stock that is going to ZERO. NYSE:PMI . They sell the insurance that people need to buy when they finance with less then 20% equity (the real at risk group of people). They are insuring BILLIONS of loans, yet guess how much cash on their balance sheet? 700mm.
They will be hosed.
You want a good trade if you believe this market is tanking? Go short PMI.
I’m not short yet, but I’m lining up my trades. Forget about investing in gold. If you want to get rich, then you’ve got to actively participate in the decline. There are numerous opportunities to do so.
Did you know that there is a swap market that allows you to short MBS? The risk of MBS has been spread to many people…will this pose a systematic risk or is this what the new global markets are all about? We shall find out…
