Put Some More Lipstick on These Pigs

It ain’t just Lehman, Fannie and Freddie: There are plenty of other Pigs in the sea.


Washington Mutual (WM)


We are long this — my trading desk has been trying to bottom tick this today — but I don’t like it as anything other than a trade.


American International Group (AIG)


We are short this; See AIG: Don’t Try to Catch the Falling Knife (February 2008) and Bloomberg Video: AIG Earnings (August 2008).

Reuters says AIG’s exposure to Fannie Mae, Freddie Mac preferred shares between $550 mln-$600 mln, according to sources.”

Merrill Lynch (MER)




The only good news is the dearth of bottom calls for the sector — something that is essential for the actual bottom to occur.


Long WM, Short AIG, No position in MER.


UPDATE: Fortune rips off this title!  Putting lipstick on a pig 9/14/08

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