Chicago Tea Party

by Larry Levin


The internet is buzzing with my buddy's rant from the floor today. Rick Santelli is, LIKE ME, steaming mad at the insane bailouts. Rick was against the bank bailouts. So was I. Rick was disgusted by the federal takeover of Fannie Mae and Freddie Mac, which effectively made Uncle Sam the great overlord of 80% of every home in the USA. Oops, did I say "overlord?" I'm sorry, I meant benevolent landlord. How silly of me. Anyhow, I was just as outraged. We were both against the auto bailouts.

But this latest bull$#&* where we have to pay for someone else's monthly mortgage AND pay down his note is just too much! If you make a rotten decision to buy Cisco at its high - too bad. If you go headlong into stocks with the worthless Buy & Hope strategy and you are down 50% today - too bad. Should I pay you money to get you even?

HELL NO! And neither should we have to pay for someone's bad housing purchase. Last night on ABC's Nightline I watched their piece on the housing problem in part of Arizona. The story highlighted a woman who wants you to pay her mortgage. I waited to hear her plight, but was surprised at the outcome. She did not get a subprime loan with bad terms. She did not go into an option-ARM contract with skyrocketing interest rates. She did not lose her job. She just bought at the wrong time.

Whoa, wait a second! She just overpaid - bought a house at the top of the market - and she expects you, me and Rick Santelli to pay her mortgage? YES! She said it would be nice if you chipped in $300 to $400 per month because then maybe she wouldn't move out. Is that all honey? Shouldn't we be forced to throw in a little free healthcare while you're making demands of MY income?

Look, helping people because they have lost their jobs may be acceptable - with strings attached. However, paying off this woman's home because she bought at the top of the market is insane.

That must be what sent Rick off the ledge this morning. Please watch the video here http://www.cnbc.com/id/15840232?video=1039849853&play=1

Later in the day Rick said he was organizing a Chicago Tea Party to protest these idiotic bailouts. It is just another form of taxation without representation!

I'll be there for sure. I hope you will be too. When I have details, I'll pass them along.



Previous Day's Trading Room Results:

Trade Date: 2/19/09

E-Mini S&P Trades*
(before fees and commissions):



1) B/away buy @ 8:30am at 794.00 = -1.50 (1 lot)

2) OTF sell @ 10:00am at 790.25 = -2.00 (1 lot)

3) VA buy @ 11:00am at 782.00 = b/e (1 lot)

4) OTF sell @ 11:30am at 784.00 = b/e (4 total with Larry's trades)

5) Engf (jumped) sell @ 12:00pm at 784.00 = -1.50 (1 lot)

6) VA buy @ 1:20pm at 782.00 = +1.75 (1 lot)

7) Algorithm positions (0)...combined SofT and Algo total...-3.25


Electronic (YM) Mini-Dow:


1) No trades today



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