Days like today are the reason I started my own blog. This was a good example of market manipulation. There were rumors that the SEC was going to suspend mark to market accounting. We’ve seen this kind of extortion before (remember when rumors circulated about an RTC-style bailout-how’s that working out?). Just when the market is about to fall into the abyss, a rumor starts circulating and the market rallies. This is how the thieves of Wall Street communicate what they want you to do for them next.
So another stupid idea gains momentum, because desperate investors think Hey, the market likes it – it must be a good idea! News flash this market that we speak of like it was some mythical god that must be appeased is actually a bunch of crooked liars trying to save their own skin and keep their little gravy train on track. But, trust me, these tactics are enough to warp simple minds into agreeing to their own destruction. It really doesn’t matter if this is actions of the PPT, or the insolvent institutions trying to bend policy to their will. It’s bullshit. It’s criminal. And quite frankly, it will probably work.
Anyone who bought that even lamer RSI technical bounce promoted on CNBC (whose parent General Electric managed another 3.5% drop today) belongs in a straight jacket. Maybe you should be thinking about is the implications of that 2.5% drop in the yen midday.
BAC’s Ken Lewis buying? So what. If he’s your leader – you are lost.
The good thing about a day like today is it should tell you that you are still playing a crooked card game.