The Fly - Congress: I Dare You to Destroy the Economy

Brilliant words from the Fly at iBankcoin.com - Do not think, for one second, any of those asshats will risk tanking the stock market and the economy, while most economists say such a plan is needed.

The Fly goes on and also likes a recent pick by the Masters, to read his post, click here.  That pick is the Ultra Financials ProShares  (AMEX:UYG).

We talked up the UYG and the XLF last Friday in our Highlander special edition, if you missed it here's the recap.

There is now only one security to play, thanks to the SEC temporarily banning 799 financial firms.  The SKF is dead, and like the Highlander, there can be only one, and its the Financial Select Sector SPDR (ETF) (AMEX:XLF).

Mastery Ads - Ads, Ads, Ads 

However, there can be two, the other play is the Ultra Financials ProShares  (AMEX:UYG)

Rather than place your bets on any one bank or financial player, just go the middle road and bet on the whole sector.  Thanks to the U.S. government doing a makeover on the financial sector and with the 'bailout plan', that continues to be hammered out by Congress and Company, the XLF stands to make a decent return in the coming months.

The Treasury Department also announced Friday that it will insure the holdings of money market mutual funds for a year, if the institutions pay a fee to participate in the program. This action “should enhance market confidence and alleviate investors’ concerns about the ability for money market mutual funds to absorb a loss,” a department statement said.

UYG 101

Currently trading around $19.

52-week Range: $14 - $62

Ultra Financials ProShares seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the Dow Jones U.S. Financials Index.

Ultra ProShares are the first ETFs designed to double the daily performance of their indexes that underlie the benchmarks (before fees and expenses). Use them to magnify the impact of your investment dollar.

SOURCE: http://www.ibankcoin.com/flyblog/index.php/2008/09/24/congress-i-dare-you-to-destroy-the-economy/