Tuesday, December 1, 2009
Worth a jolly good read!!!
The final lesson is, Beware of the dangers of bottom fishing. It would have been tempting to buy this security when the original AAA paper traded down to the low two-digits -- but any buyer that did that is sitting on big losses. Just as things often rise further than you think they will and stay there longer, they can also fall further than you think and keep on falling. Remember that when someone tells you that something is so cheap that it has nowhere to go but up