We hit bulls eye by informing you before it was generally known that the bailouut will not cover non US institutions and providing you with the oppotunity to exit BCS position with over 30% profit in three days.
Following is the text of the Treasury plan:
September 20, 2008, 1:05 pm
Treasury’s Financial-Bailout Proposal to Congress
The following is the legislative proposal from Treasury Department for authority to buy mortgage-related assets:
Section 1. Short Title.
This Act may be cited as ____________________.
Sec. 2. Purchases of Mortgage-Related Assets.
(a) Authority to Purchase.’“The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.
If you are long UBS and RBS, consider selling them because they are not US headquartered and had massive moves. Let us watch what happens to Foreign institutions when they open Monday. Unfortunately because of the ban on short selling we can not short US, UK and German banks.
Aggressive accounts may consider shorting Japanese, Chinese, Indian and French institutions with toxic mortgages in their home markets at the open before the foregoing information becomes widely understood.
At the open in New York or in thepre-market trading in US on Monday consider shorting ADRs of French, Swiss, Dutch, Japanese, Chinese and Indian banks and insurance companies, depending upon the opening prices .
There may also be arbitrage opportunities on the foregoing securities between New York and their home country prices.
