Trader Mike

From a Bloomberg article about the second U.K. hedge fund this week to blow up due to subprime mortgage investments (via Jack Stevison):

“The losses are going to be phenomenal” for funds worldwide holding subprime debt, said Peter Schiff, president of securities brokerage Euro Pacific Capital in Darien, Connecticut. “My guesstimate in the subprime world is that the majority of loans are going to go into default. Not just 5 or 10 percent, but the majority.”

I’d like to know if there are any funds making money off of these subprime woes. Can these CDOs or whatever the heck they are be shorted?

My sentiments exactly:

The contrarian wisdom being bandied about lately is that so many people are positioning themselves for a correction, that the contrarian view is actually to remain bullish and expect a continued rally in stocks. It’s just that MarketBeat seems to be hearing this from one too many people lately, as if everyone’s caught on to this “contrarian” viewpoint. Of course, the very mention in this blog probably predicates a contrarian contrarianist approach – that is, if too many people are saying it’s contrarian to be bullish and therefore, it’s time to be bearish, mentioning this in a markets blog reverses that double-negative and puts the market back in the bullish scenario again. Think about that.