Recovery & Recuperation

As predicted CIT fell further on US market open and all those short or listening to sound advice from this humble blog would have hit some good numbers. Once my CIT short was closed I have now opened a small long position at 1.23 and honestly believe the 4th largest bankruptcy in US corp history will not happen. I think Prez O and his govt have too much at stake and either a buyer will be found therby making the long trade in CIT profitable, or their debt will be succesfully re-structured. Either way at these levels I say CIT is a win-win trade, the downside is not massive (depending on your risk profile) and as long as they don't follow the path of Lehmans I can see CIT rising out of the ashes.FT Alphaville have a great post on the re-structuring of debt for CIT this topic this morning.