Nice piece here from Peter Schiff. He calls the GM IPO a fraud and rips into Warren Buffet's Op-Ed piece in the NYT.
Watching Buffet's fall from grace has been shocking for me personally. I always had deep respect for the guy until the economic collapse. I wrote him off as just another crook as soon as he jumped into bed with Goldman Sachs.
Buffet can take his "medal of honor" and shove it up his ass as far as I am concerned.
As for today's stock market rally I am not impressed. We saw more distortions in the markets once again. Bonds should have fallen sharply today as investors piled into stocks.
As you can see below, the 10 year barely budged as stocks rallied:
As a result of the price action in treasuries I take this rally with a grain of salt. This was basically a GM pump job.
Speaking of GM, I can't wait to short this stock into oblivion after the initial mania of the offering wears off. As Schiff said above, the core issues with this company have not been resolved. Cars are now selling at a much lower rate historically, and I don't think GM's restructuring was aggresive enough to allow this company to be profitable over the long haul.
I think I will keep it short today because today's price action is irrelevant to what's really going on over the longer term.