Easy Winnings

Want a hot tip?

You’d be well advised to ask elsewhere – but since we’ve come this far: Short the Nasdaq Bailout Index.

Why do I say this? Because I’m pretending today is Jan. 5, one month ago. That’s the day Nasdaq launched its composite index of 14 of the major corporations that had received chunks of the fall 2008 federal bailout bucks. The Citigroups, the GMs, the Goldman Sachs of the world.

Officially, it’s called the “NASDAQ OMX Government Relief Index.”

How’s it doing so far?

Oh, the Bailout Index has reliably dropped better than 1.7% each trading day.

That’s toxic, baby. Toxic.

Nasdaq set the Index at a value of $1,000 per share. At closing yesterday, the end of 22 trading days, that thousand was down to $607.

That the bailout recipients have plunged in market value by roughly 40% is either a reflection of how bad off they were to begin with – which begs the question of why we taxpayers have bought into them so deeply – or else it’s a reflection of how big and brave we citizens collectively are, having raced so far along the road to socialism or state-ism or something. Mortgaging our kids’ future against the lousy management of these companies’ past.

See what I mean, comrade?

You can draw your own conclusions.

Me, I’m just reaping my winnings – or I would be, if I could live like Benjamin Button, backwards through time.