6/17 That Darn Hole

Written on June 17, 2010

Alo-

Thought I was crazy with my underwater Tomahawk missile…now we’re talking…

From UBS this am:

In his terrific “Big Picture” blog, Barry Ritholtz cites a Bloomberg Radio interview of Matt Simmons.

Here’s a bit of the citation:

Matt Simmons was on Bloomberg earlier, adding some additional perspective to his original appearance on the station, in which he initially endorsed the nuclear option as the only viable way to resolve the oil spill. Simmons refutes even the latest oil spill estimate of 45,000-60,000 barrels per day, and in quoting research by the Thomas Jefferson research vessel which was compiled late on Sunday, quantifies the leak at 120,000 bpd. What is scarier is that according to the Jefferson the oil lake underneath the surface of the water could be covering up to 40% of the entire Gulf of Mexico. Simmons also says that as the leak has no casing, a relief well will not work, and the only possible resolution is, as he said previously, to use a small nuclear explosion to convert the rock to glass. My buddy Mike told me that the Soviets had to do this to stop some major gas leaks in the 60’s.

Obviously more than one whacko in the world, me and Matt.

By the way, I was wrong. The new Dept will “only” get $20 bln from BP not $40 bln. I was writing in jest when I wrote that. But this is frightening. The President of the US just took $20 bln from US taxpayers retirement funds in the form of BP dividends and will distribute them as they see fit. FRIGHTENING. Shame on us.

Gartman points out today, the man we are sending to head the Director of Minerals Management Service that will oversee offshore drilling (SLUDGEDept.-Strategic Limitation of Underwater Discovery & Greasy Endeavors)…Michael Bromwich. A lifetime government employee and a lawyer (no offense Scottie, Rob, Mike, Charbel, Rafi, Chris et al) I would do any deal or trust you with anything legal but I would not send you to Louisiana unless it was so Mike could visit family there or take us all to Mardi Gras. The SLUDGE CZAR has no private world experience. I say give the job to AHNOLD. He needs a break from the deficit in Caleefohnia. And we need a guy that can take a charge to the bottom of the ocean with his bare hands shove it deep down that monster’s throat and blow it shut. What happens when this nightmare catches fire on the surface, how long will that fire burn?

Here is another growth industry.

Go contract with the new SLUDGE DEPT at the US Government to get money to equip every used (fuel efficient, Green as Grass) Mikelson Yacht ever built. Have Tom Fexas design a new oil sucking boom apparatus and retrofit every design on the books. Call BP and let them know that you have a deal for them…If you can’t fish the waters in the Gulf, might as well make some hay cleanin’ them up!

I know first a Presbyterian and now …this was rattling around in my head and buggin’ me so thought I’d go find it and type it.

As it opened the tunnel, smoke poured out like the smoke of a great furnace.

The sun and the air turned dark because of the smoke…

“THEY” have the power to lock up the sky and to keep rain from falling ….

“THEY” can turn water to blood and cause all kinds of terrible troubles on earth.

Apocalypse of John 9:2, 11:6

1^st Century AD

Contemporary English Version

Who are THEY thought to be? …Scott, Larry…Buehler, Buehler, anyone?

I also wanted to follow up with an excerpt from How to Trade in Stocks by Jesse Livermore.

Livermore would sell out his positions at the end of every year and had the cash deposited in his account at the Chase Manhattan Bank. He would arrange with CMB to have the cash put in the bank’s vault in trunks. “There was a desk, a chair, a cot and an easy chair in the middle of the cash.” In 1923, there was $50 million in cash. There was an icebox and enough food to last for a few days. He had lighting installed. Then, he had himself locked in the vault with his cash. He would stay a couple of days and “review his year from every aspect.” Whacko!

Here’s how the steers played out…

GS					Short	Cover	P/L
June 120 puts					0.38	0	100.0%	* I hope
July 120’s					2.26	1.31	42.0%
Oct 95’s					2.76	1.9	31.2%
GRMN
July 27 puts					0.6	0.21	65.0%
BP
January 20 Put					1.5	2.4	-60.0%
					Buy	Sell	P/L
GRMN Long					32.01	34.03	6.3%
BP					38	36	-5.3%

My stack needs no vault, but as of today, I am managing absolutely no stock market exposure (anywhere) whatsoever for the first time in I don’t remember how long and I am going to sleep like a baby. Have a great weekend. I will leave you to it and best of luck!

G’Day,

Leon