Stupidity bothers me

I haven’t really voiced any opinions here, mostly because I thought of this site as a stock market type site where market and business news and trades would be published, but since I’m feeling pretty strongly about the insanity I’m seeing, and I have to vent, this is going to be where I will do it for now. Here we go.. stupdity irritates me

There’s news out that Freddie Mac will be buying jumbo loans from the top four lenders. Comprising the top four are JPM, WM, CFC, and of course Chitty.

Chitty is the one that I need to bitch about because, well, I have a majority of my account invested in puts and while I watch the stock go up (nearly 4% so far today) I have to say that I can’t be the only one that understands the company is actually doing worse by selling off the loans they have. Really now, if I were long on the stock I would feel the same way. This is just as asinine of a business deal as I can imagine seeing.

If the jumbo loans were all going to be valued as worthless then it would be great for Chitty to offload them onto the government for you and I to pay through taxes. The reality is that Chitty makes it’s money off of loans, collecting interest, which they will be losing by selling off loans they probably paid a little to acquire initially.

Here’s the Reuters news article.

Chitty CEO has since stated that Chitty vows to cut the cost base by up to 20%. What? So Freddie Mac comes and takes your business away and now you have reason to cut more costs.. no schit!

Keep going up in price stock, I won’t be changing my mind. There’s little chance that Chitty won’t drop eventually and I will be happy to see that eventually when that happens, the stupid people will be wondering who knew it was coming and I will be able to link to this post on this day and say “LOOK AT WHAT I WROTE YOU MORON!”.