All you eggs in one basket.

http://www.nypost.com/seven/12132008/news/regionalnews/investor_furor_over_50b_scam_143966.htm

http://globaleconomicanalysis.blogspot.com/2008/12/madoff-madness-i-knew-he-was-cheating.html

Rule #1 before I learn buy low and sell high, I heard do not put your eggs in one basket. For all those weathly investors it is a tragerdy but you can not trust one thing. I am shock to see how many people had all there money in one spot. In the end few people understand financial markets, or making money. We are searching for the easy money. It is a illusion. There is no perfect stragery, there is no safe investment.

#2 Why the hell would you invest thinking he was doing something illegal??? In the end it will crash. Ponzi scheme or insider trading. In the end you will get screwed. Greed is not good. Wall Street the movie has created a legion of Gordon Geckos. Everyone is searching for the easy money and does not care if we screw people in the end. Sad.

#3 The even worse part, if you took money out in the last six years you can be sued to return it. Since you received illegal money you have to give it back. So not only do you lose all your princiapl, but you lose six years of returns. Ouch.

24 and 25...

http://www.fdic.gov/news/news/press/2008/pr08134.html

Haven Trust Bank, Duluth, Georgia, was closed today by the Georgia Department of Banking and Finance, and the Federal Deposit Insurance Corporation (FDIC) was named receiver.

http://www.fdic.gov/news/news/press/2008/pr08135.html

Sanderson State Bank, Sanderson, Texas, was closed today by the Texas Department of Banking, and the Federal Deposit Insurance Corporation (FDIC) was named receiver.

I would not be surprised to see mulitples of banks each time now as the problems increase.

Bloomberg V Fed

http://alephblog.com/2008/12/12/what-do-you-have-to-hide-ii/
Fed 1. Bloomberg 0. Sicking. Excellent read.

GMAC fading

http://www.reuters.com/article/ousiv/idUSTRE4BB5FZ20081212
When GMAC fails,GM is done. Along with this breaknews on CNBC says it is going shut most of prodcution in Q1, this effectly will take out the suppliers who depend on GM since they will not be buying and means no receivables since the car makers take profit when the car ships to the dealer. If GM goes, the dealers will go right behind them. Why? Cause there inventory will lose 30%-40% of its value with the GM BK. Dark times.

Jim Rogers calls most big U.S. banks "bankrupt"

http://www.reuters.com/article/newsOne/idUSTRE4BA5CO20081211

Jim Rogers, one of the world's most prominent international investors, on Thursday called most of the largest U.S. banks "totally bankrupt," and said government efforts to fix the sector are wrongheaded.

Ouch. I take a great interest in what Jim Rogers thing.

"Without giving specific names, most of the significant American banks, the larger banks, are bankrupt, totally bankrupt," said Rogers, who is now a private investor.

I have already bought puts on the remain banks for July-Dec 09.

General Growth

http://www.washingtonpost.com/wp-dyn/content/article/2008/12/12/AR2008121201349.html
We are now looking at the largest commercial real estate BK in histroy.

Ponzi

http://www.cnbc.com/id/28195029
Imaging thinking you worth millions only to find out you are now broke. WOW.