GS and the large banks, BAC, C, JPM, WFC...all are in a "I'll scratch your back, if you scratch mine" relationship. They have been boosting each others stock prices with upgrades, which happens to be the most ridiculous thing Ive ever heard of. Who gave banks the authority to upgrade/downgrade each other? Shouldnt it be an independent entity doing that? Anyway so GS upgraded BAC on Monday, Tuesday the stock sold off on negative news, Wednesday it bounced back, today when the markets tanked, GS upgraded all the large banks. In return for this important service which allowed BAC to dump millions of shares at a much higher price than it otherwise would have been, BAC "sold" GS shares of BAC for $10. For two days now, GS has been reselling those shares at a profit at market value, all the while artificially holding the stock price at $11.50. HUGE negative cash flow on BAC for past 2 days is evidence of dumping and price manipulation. Stock price up or flat, 35/100 block trades selling off. Its all very clever. But thats why FAZ was flat today because of the upgrade.
Today Morgan Stanley upgraded BAC price target from $25 to $32 (why not $320?), price jumped on the news but now is holding around $11.50. This whole bank rating system is a joke.
I hereby upgrade FAZ price target to $10.
Absolutely the best thread and posts I have ever read anywhere. Your analysis needs to be published in NY Times, Wall St. Jrnl, Bus. Week, etc. Please contact them all and submit it in article format, it's too important to go unheard.
How did that work out last summer when they were upgrading each other? Remember WM saying they had 40 billion in liquidity? A short while later WM, WB, AIG, FNM, FRE and LEH were history. The rest were not far behind, Paulson and Bernanke had to kiss azz in Congress to get 700 billion to save the others.
Instead of the banks eating losses we allowed AIG to funnel money to them and for the banks to dump toxic mortgages on FNM and FRE. The taxpayer is now absorbing the losses. Since those entities are now under government control, they can funnel unlimited funds through them to the banks.
It is the biggest scam the US government has ever undertaken against the taxpayer. Just wait until the government has a financial crisis because it won't be able to sell any more debt.
The worst part about it is this scam will probably work. BAC will probably survive, though I do expect some further dilution down the line. Government is giving banks free money which they use to buy up debt from other banks for cheap, and lend a tiny percent out to poor Americans in need. Most of its being used to buy up bad assets at a major discount. When I heard BAC sold off a percentage of its China bank holdings all I could think to myself is...why did they accept taxpayer bailout money if they are holding billions of dollars in foreign bank equity?
For the past several days, BAC would shoot up to $12 and then drop back down again. Thats probably what will happen tomorrow. Big money is doing everything in its power to entice the little investor into buying into rallies, only to have it sell out from under them. FAZ comprises mostly of big bank stocks. Because of the upgrade, the large banks held steady whereas the small and medium size banks saw double digit losses. The outright manipulation of the financials makes them only suitable for day trading. No one knows their true strengths and weaknesses and we wont know until they want us to know, which will be one day after they've sold all their shares.
Agree with you . after they sold all their shares .they will let them free drop for them to buy back . that is the way how to make their money , do not forget mr, ken lwei $6.00 / shares for 200k shares . make more then million dollars with in couple month . while they bought many people follow him . then he let the price free drop ,
there are lots of ridiculous things happening in this crazzzzy and insane market. if you are normal and sane, you can hardly buy it. even i got puzzled with what has happened last 2 months. However, this is reality.
these days, if you are crazzzzy, insane and illogical, you will fit into this market well and make nice bucks. So what you and I can do. just believing what you or I have believed while losing tons of hard-earned $$ day after day or being an insane, illogocal and crazzzy gambler but making nice easy bucks?
can anyone correlate what is happening in this crazy market to financial/economic/social reality? geez, greatest myth in this century, eh:-)
I suspect BAC obtained the ability to artificially prop up its stock price via the acquisition of Merrill Lynch, which has computers that submit timed stock trades. Heres how it works. Price is $11.50 and falling. BAC has the computer sell off trades at $11.51, $11.52, $11.53 and so on in small blocks. People see the price rising and jump in on the action, at which time, BAC submits larger orders to start selling. At the same time its submitting orders at 100 shares to sell at $11.55, its selling 5,000 shares at the same price. Momentum buyers (i.e. suckers) jump in and buy up all the shares thinking erroneously that the price is climbing. It happens all day long and explains why $1.6 billion per day was lost on the stock in money flow.
Very nice review of the market forces. There are very few messages on this board that are worth anything. It is very refreshing to see your message. Thanks for your input. I was wondering why FAZ didn't move on a down day.
Nation will facing another finance problems again . Goverment let them create another crook . what they recently doing . OBAMA no better then Bush He is start learn how to lie to public now .I hope that he return back to people / do not let another big crook be born