Alternate Reality Alert

Econ 101 Blog ^ | 3-10-09 | Newshound

[NEWSHOUND]

-Musings over my morning coffee -

Looks like just another day in the alternate reality we are all participating in.

I guess I should have bought Citi shares when they were still a buck a share (Dilemma - Buy stock or a candy bar? Hmmm?). They’re up about 40 cents a share today based on a statement from the bank CEO that Citi made a profit during the first two months of this year. Ironically enough, if you read deeper into the article you find out that the losses that would offset some (or all?) of the profit have not been calculated.

WHAT!!!??? Can I use this method of accounting, too? Just ignore any negative cash flow and only count income. And what is really funny is that based on this lame statement the stock market (driven by banks and financial stocks) is rallying over 300 points. ROTFLMAO!

If this works then I want to buy stock and then convince the CEO to make some baseless positive statement so I can make a killing on the market. Woo-Hoo!!! We're all going to be rich!!! Obviously the economy is now completely divorced from reality.

My question is, are we all so desperate that we're willing to grab onto any 'happy face' statement just so that we don't have to deal with what's really happening in the economy?

Read the rest of this article here

[NEWSHOUND]

I've finally had enough of the smiley-face media patting me on the head and saying, "No Depression here! Just move along and make sure you stop at the mall to spend a few dollars and keep the economy moving on your way out."

[OneWingedShark]

Sell Short, Sell Short!!

[who_would_fardels_bear]

One day Morgan Stanley was $9/share. Someone said something about how they would never let what happened to Lehman Bros happen to Morgan Stanley and the next day they were up to $18.

I came so close to moving "all in" on that stock. In one day I would have gotten back all the money I had lost that year.

Oh well I guess I am more like an "investor" and less like a gambler.

[Orange1998]

I am wondering the CEO is saying a profit is a tax refund from losses. That would be sicking. Double Dip?

[GeronL]

and when investors get the rest of the story the market will tank again, right?

[NEWSHOUND]

I'm not convinced the market is really reacting to anything concrete anymore. Over the weekend world markets took a nosedive because the World Bank basically said they didn't have enough money to underwrite the failures of the financial markets. Our markets opened up and didn't react at all. Employment numbers that should scare the socks off the market come out and no one even blinks. Either (1)the markets have oversold and stocks are currently undervalued because of fear (which I doubt)or (2) trading is being moved by amateurs on E-Trade who have no idea why they're buying or selling or (3) there is big money trying to save Obama's bacon by pumping liquidity back into the bubble (tin foil hat firmly in place). To tell you the truth, I really am beginning to think we are living in an alternate reality.

[GeronL]

I have no idea any more.

[reformedliberal]

I vote 2) and 3).

Out of the market completely since September and out of bonds since October, so, it is pure habit that I even pay attention, but I am certain that all the hedge funds are daytrading to recoup and I think this time, the PPT is being very cautious and just trying to keep the market as close to 7000 as possible.

[Rummenigge]

When - oh when are they going to stop this BS !

There’s a loss in trust into the financial system of the US ?

Who would have thought.