Talk about late to the party!
Bear Stearns, which made a disasterous series of sub-prime bets, has found religion. They have now bet a $1Billion that the Subprime market will decline further:
Bear Stearns Cos., the U.S. securities firm that posted its first-ever loss
last quarter on mortgage writedowns, is betting more than $1 billion that
subprime home loans and bonds will continue to decline.
While I do not expect us to be done with the subprime slime yet, I do get a "Is this a bottom indicator?" sense from Bear on this.
No one firm is a reliable fade. Still, one cannot help but wonder how ironic it would be if they caught leaning the wrong way in both directions . . .
Bear Stearns Makes $1 Billion Bet on Subprime Market Decline
Bloomberg, Feb. 8 2008