US Stocks Higher; Financials Gain On Wells Fargo Remarks

[ShockediSay]

Source: WallStJrnl

By Peter A. McKay and Geoffrey Rogow

Upbeat remarks from Wells Fargo sparked big gains in the financial sector, which led the broader market higher on Thursday.

The Dow Jones Industrial Average was up 171 points, north of 8000. The S&P 500-stock index gained 2.6% amid a 8% surge in its financial sector. The Nasdaq Composite Index was up 3%, continuing its recent trend of outperforming other benchmarks. Dell rose 6.4% and eBay gained 6.2%.

Wells Fargo shares jumped 21% after the bank said that it expects to report record net income of approximately $3 billion, or 55 cents a share, for first quarter. The company said that it is seeing strong operating results from its acquisition of Wachovia and that lending activity has been brisk. Wells said it expects consolidated net interest margin of approximately 4.1%. Wells shares were recently up 17%.



Read more: http://online.wsj.com/article/BT-CO-20090409-711151.html

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I think financial stocks are jumping because FASB
allowed them to pretty much value toxic asset bullshit
bogus bonus bait, for whatever these financial guys want.

I think that FASB { 5 accountants in Dodd's homestate }
were pressured by congressional lobbyists to simply change
the dark art of accounting so that worthless assets were
suddenly silk purses of gold. {Dodd was the Senator
who stuck a provision into one of the BailOut Bills
that preserved the bonuses of AIG types, also located
in Dodd's homestate, Connecticut}.

Plus these assets are still rated by agencies who also
thrive on bogus bonuses the more they can turn their
clients toilet paper securities into triple A rated
silver certificates.

The whole system rots and I would not invest a penny
into any of these these financial institutions.

Google "Geraint Anderson" and you'll learn the games
these financial bonus babies play, like "pump and dump"
and "trash and cash" and "insider info" and the like.

[Political Heretic]

1. This is why a simple "restart" of the SAME corrupt, broken system won't work

If anything, the crisis we are in right now is kind of like the final warning for America. If we just "reset" everything and go right back to the same basic corrupt system we just set up yet another boom with a following bust, only next time the bust will probably be the last one we ever have.

A layer of new regulation slapped on this rotting system could keep things patched together for longer, but ultimately, without deep, and I mean DEEP, revision and restructuring of our basic system - we're just handing our children the economic end of America on a plate.

[acmavm]

2. Do NOT judge the state of the economy by the stock market.

Do not use the thugs who gamed the system as a gauge of how well the economy is doing.

Sure, WF may be recovering. Why the fuck shouldn't they? They and the other schemers and sleezeballs have had money shoved at them by the Obama admin.

[TheWatcher]

4. Once Again The Banks play "Smoke And Mirrors Bullshit" with the Public

And most Of The Public will probably Bleat, gurgle, grunt, and get back to their junk culture and enjoy continuing to get fleeced.

If one reads the reports on this closely, these are not actual reported numbers for the Quarter. These are not hard data, these are "expectations" and "forecasts"

This is all bullshit, and anyone who buys into this is going to get screwed.

And if they DO report actual numbers like this, you can Thank the FASB Mark-To-Make Believe nonsense for helping the Banks basically make up fictional numbers, and continue to a new level of corruption and atrocity.

The Problem is that the General Public is so dumbed down, hypnotized, and deluded to the addiction of "The Quick Fix" they will follow this unquestioningly, because it's more important to feel good than face reality.

This is yet another example of Propagandizing the Public into False Hope for a False Recovery that doesn't exist, because their precious "Rally" was about to collapse.

They will have to do this EVERY day eventually.

The Public is willfully ignoring the fact that the fundamentals in the REAL Economy, not the fantasy economy of Wall Street, continue to get worse.

America, at least economically, is finished.

It's Over.

If I'm wrong, unlike the cackling, giggling, goose-stepping, eternally annoying and sheepish "Thank God It Passed!!!!!!!!!!!!!!!!!!!111111111111111111111" Brigade, I'll happily admit it instead of attempting to desperately prop a fantasy that doesn't exist.

This is getting stupid, and just plain infantile.

We have gangsters running everything.

[scipan]

3. Actually, Dodd's amendment put a cap on bonuses

but Geitner and Obama asked him, and he agreed, to add a loophole. Dodd has been the target of a lot of smears by Republicans who see a chance to get his seat in 2010.

[ShockediSay]

5. Bring back Glass-Steagall

separating the bogus business of hedge fund investment bilking
from ordinary commercial lending. This way our banking business
does not get dragged into more toxic waste.