Your comments usually make it sound like you heard news completely opposite of what everyone else heard.
It's time to let the bubble deflate...it'll take that other bubble with it...uh, oh yeah, Wall St. They'll just bankrupt the lenders(rightfully so), screw shareholders, and take the hit themselves. People not thinking this will "spill" over into Wall St. are morons...maybe they don't have any idea about the MBS and CDOs.
Might want to consider selling it into earnings, the guidance could well be lower. Crack spread fell today, just a reminder that watching the intraday gyrations is quite necessary with oil stocks. The inventory report got pushed aside today, I'm thinking there will be renewed interest in those well below expected numbers by Friday.
A lot of the lenders probably didn't fully disclose the risk of their MBSs and that's where I think we might see a lot of pain hit the supposedly "high quality" lenders. Wall Street being sold a bunch of risky loans packaged as securities that weren't even given to people who could afford the indexed rate on them will not go over well. I'm pretty sure a number of good Wall Street attorneys can claim widespread fraud if they find out that these lenders were selling loans that lenders knew were likely to be defaulted on in a dropping market. The only way this would have worked is if the price of housing kept going up...just like Enron execs thought about their stock price!
I am going to watch it, along with RBOB, but I am trying to determine the critical level for crude oil regarding that crack spread. I do know that Valero is trading at a P/E of 7, which is pretty remarkable.