Even as the world was still desperately trying to figure out what exactly Bitcoin is, it was inducted into the Wall Street hype factory today by an analyst who touted it as the best thing since sliced bread – just when all heck was re-breaking out.
Entries in Wall Street shenanigans (130)
One of the few rebellious Fed heads, Richmond Fed President Jeffrey Lacker, fired a salvo when testifying before the House Judiciary Committee. He hit Wall Street risks covered by implicit government guarantees in the size of America’s GDP.
By Doug French, Casey Research: In March, 2009, under pressure from Congress, the Financial Accounting Standards Board, a private-sector organization, motivated banks to become the worst slumlords and neighbors imaginable.
Gagging Doubt: French Crackdown On French And American Bloggers Who Question Megabank Balance Sheets
France’s Financial Markets Authority slapped fines on two bloggers, Frenchman Jean-Pierre Chevallier and American Mike “Mish” Shedlock, “for having spread inexact information about the level of indebtedness” of megabank Société Générale. Instead of going after banks, bank regulators are going after bloggers! It's more convenient.
We’ve known it all along, but now a former Fed insider confirmed it. QE, despite the Fed’s relentless efforts “to spin it as a tool for helping Main Street,” was “the greatest backdoor Wall Street bailout of all time.” But it’s complicated. He’s a revolving-door Wall-Street banker.
After five years of QE, and $3 trillion in new money floating around, we now have asset bubbles everywhere. Risk is no longer priced into anything. In fact, it has disappeared as a factor. And the Fed is publicly fretting about it.
There has been a symphony of calls for American investors to plow their money into European stocks. So, net inflows into European equity funds have set records, driven by euphoria about a presumed recovery. Equities soared. But turns out, reality has bad breath.
By George Leong, Investment Contrarians: Apple is maintaining its position as top seller of smartphones in the US, but not in the global market. Unless it gains traction in the emerging markets, the stock is going nowhere – that’s what institutional money is saying.
By James Murray: I used to be a stock trader. There. I’ve admitted it. I feel better. I claimed it was a “profession” but it was really an obsession.
Sign of trouble: A wealth manager told me some of his elderly clients were now coming into his office, and they’d say, “My kids tell me that I can make 25% a year with stocks.” How much were they were willing to lose? “Nothing,” they’d say.
By Cali Money Man, Testosterone Pit Exclusive: How can anyone look at this without concern? Many portfolio managers are riding the wave but are prepared to dump their investments at the first alarm – then, who is going to buy?
By Michael Lombardi, Profit Confidential: Black Tuesday in 1929, the crash in 1973, Black Monday in 1987, the dotcom bubble in 2000, the financial crisis starting in 2007 – in all instances, before the market destroyed the wealth of investors, one common thing happened.
The Smart Money Denies They’re The Smart Money As They Franticly Sell Their Crown Jewels Before The Bubble Blows Up
“It’s a great time to sell,” mused a pension fund investment officer. And Blackstone Group, the world’s largest private equity firm, is doing exactly that, feverishly, relentlessly, hand over fist, at peak valuations, cashing out. What does that mean for the rest of us?
Twitter IPO A Dud? Yes, Says Survey of Financial Advisors (But You’ll Own It “Whether You Want It Or Not”)
Brokers, financial advisors, and wealth managers are a recalcitrant bunch, suddenly, after having gotten their manicured fingers burned on a few super-hyped IPOs, and now they just refuse to get exuberant about the Twitter IPO. At least that’s what they indicated in a survey. But individual investors, well, that’s another story.
By Bryan Wiener, Benzinga: It was one of the craziest days for a single stock in quite a while. After the release of its earnings report late Monday, Netflix raged to its highest level ever in after-hours trading, hitting upwards of $396. Then, in an enormous reversal on Tuesday, NFLX hit its all-time intra-day high of $389.16 and tanked.
By John Mauldin, Mauldin Economics: Sheraz Mian, Director of Research for Zacks Investment Research, gives us an overview of corporate earnings trends for the past several quarters and consensus expectations going forward, and asks, “How realistic are these expectations?” Not very, he says.
By Michael Lombardi, MBA for Profit Confidential: Optimism is increasing each day. The US stock market “seems” to be a safe place, and it’s common to hear stock advisors suggesting it’s going higher. Recently, we heard the “Godfather of Charts,” Ralph Acampora, turn bullish. In August, he’d still seen a 20% decline of the DOW.
Stocks balloon, we’re incessantly told, because revenues are rising due to great products, ingenious strategies, or brilliant marketing; and because earnings are rising due to, well, if not rising revenues, then cost cutting, moving production overseas, squeezing suppliers.... But what if revenues sag and earnings plunge, not for a bad-hair quarter, but for years, and the stock still balloons?