If Bailout II doesnt really solve the issues the financials are facing.. We might see nothing other than zero in all mortage hit bank stocks.. Possible wipeout of C,BAC and AIG??
what I like about great depression if it ever happens in my lifetime is this I will have plenty of company in soup lines me and other traders can crack liquidity jokes as we wait for soup and a small piece of bread
Market inefficiencies tend to gain strength during big economic dislocations. As long as your broker(s) stay afloat, you should do very well as a trader.
It's pretty hard to take advantage of small and mid cap price dispersion if you're handling $10bln. Much much easier if you're handling just $1m.
imho, price dispersions translate into wider spreads and lack of liquidity. i dont see how those attributes can help you "do very well" irrespective of your size. but i am always eager to learn, so let me know.
Lack of liquidity if you're swing trading a simple $1m long/short portfolio of small and midcaps? Please. Many of these stocks are turning over >$1m a day each stock individually, so easy to get in and out with baskets of a couple dozens of them if you're not day trading.