WHY MUDDY WATERS SHORT ON MANU LIFE WILL FAIL
Much as I admire Carson Block I think shorting Manulife is the wrong call.
The Government and courts of Canada will neve let Manulife go chapter 11.
Too much damage
Whilst the short looks good in isolation.
A short must never be considered in isolation.
The "FRAME" in which the short exists must also be carefully examined for the impact of external events on the short!!!!!!!!!!!!!
The "frame" for the manulife short is bad.....very bad.
If Carson would read his "Reminiscences of a Stock Operator" pages 189-192, and I hope he has, then he will obvouisly recall that Jessie Livermore lost out on his long coffee speculation during the world war one due to the US Government mandating that all coffee futures be closed out.
This is a similar situation.