Back in 2006, one of my largest short positions was in Golden West (World Savings) because most of their mortages were in California, and most were ARMs, with many neg-ams and other exotic “products”.
Then, the idiots at Wachovia bought WS in May of 2006, IIRC — when any toad should have been able to see the writing on the wall — and paid an f’ing premium for it!!!!
Whooosh, went all of my money on that trade (usually trade options), just like that.
If I could see it, why couldn’t they?
That’s why I don’t buy the theory that CEOs (and their executive entourage) “deserve” their pay. They are well-connected, and that is all!!!!
