Lenny Dykstra Is Bankrupt (I called it!)

Poor men wanna be rich, rich men wanna be kings,
And a king aint satisfied till he rules everything.

    -Bruce Springsteen

Traffic to this blog’s posts on Lenny Dykstra skyrocketed today after the baseball legend declared bankruptcy -- something I predicted in April after he was dumped by TheStreet.com (TSCM):

Lenny’s “Nails on the Numbers” newsletter has been renamed “Deep-in-the-Money Calls” and is now written by options-market star and all-around nice guy Jon Najarian. I can’t say I’m surprised at this turn of events. While Lenny was a major profit-generator for TheStreet.com, the bad press was starting to make Lenny more trouble than he’s worth.

And if they had to replace a former baseball player, who better than a former football player, especially one that actually knows options?

This story may get spun as Lenny taking personal time to handle his divorce, but time has been running out for him. I have no doubt that TheStreet.com would have eventually pulled the plug on Lenny because they can’t have a financial wreck pitching investment advice to the masses.

Lenny’s going bankrupt. How do I know?

It’s simple. I’ve never met a rich person that tried so hard to look rich.

While I’m clearly not a fan of Dykstra, this is a tragic story. He accomplished quite a bit in baseball and business before he decided to play Wall Street bigshot. It’s a classic story of an ego getting completely out of control, only to face the inevitable, ugly crash back down to Earth. You can only burn so many people before the fire gets you too.

Unfortunately for Lenny, this story is going to get uglier. A little birdie told me something pretty shocking about Lenny’s spending that hasn’t been picked up by a single media outlet. It’s not something illegal, but I would consider this act highly unethical if true.

If I can confirm it, I’ll publish it.

P.S. Read my story about Ron Insana’s early adventures in the investment newsletter world!