Regular readers know well how I feel about that 3 headed monster known as Cerberus. My last comment back on Dec 18 was as follows;

To think of the smartest guys in the room errr sorry I meant to say Cerberus, and their escapade into the mortgage arena and now the auto industry, I truly wish I was a fly on the wall in their strategy meetings, just to hear how the smart money, master of the universe, MBA draped, Ivy league type discuss their monumental screw ups. For some reason I have gut feeling that a mirror is in no way involved.

Now we get news that ResCap needs more money. My favourite comment the the linked article from Bloomberg was the one by Pete Hastings from Morgan Keegan;

"It's good for GMAC in that it shows support for a troubled operation and it suggests the strategic importance of the unit,''

You cannot make this stuff up folks. ResCap is headed right where that other brilliant Cerberus investment Aegis went, the bankruptcy heap. I have a suggestion for anyone out there holding GM stock, get out and get out now before it becomes, I hate to say this, worthless. I am no accountant but you tell me how they can stay in business without divine intervention. As for Cerberus investors, govern yourself accordingly as you are all accredited.


Mike Panzner had a great piece I caught yesterday called Here Come Freddieeeee ! For those that are not visiting his site Financial Armageddon, you are really missing out. And for those scared of what people will think if they see you on that site or with a copy of his book on your desk or bookshelf, then might I suggest continuing listening to Dennis Kneale, Vince Farrell, Larry Kudlow et al. with a few Hail Marys thrown in for good measure. I have lifted Mike's entire post and reprinted it below.


Here Comes Fredddiiieee!
When they were at the investment bank Dresdner Kleinwort, strategists Albert Edwards and James Montier were sometimes labeled as "permabears" because of their persistently negative views on the excesses in global financial markets, among other things.
To some, that would be enough reason to dismiss their commentaries as worthless rants.