Comments on: Looking Askance at the Stress Test Rally http://www.ritholtz.com/blog/2009/05/looking-askance/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Wed, 10 Mar 2010 04:34:39 -0500 http://wordpress.org/?v=2.9.2 hourly 1 By: The Liberty Papers »Blog Archive » Richard Posner — The Bailout Saved The Economy! http://www.ritholtz.com/blog/2009/05/looking-askance/comment-page-1/#comment-169530 The Liberty Papers »Blog Archive » Richard Posner — The Bailout Saved The Economy! Fri, 08 May 2009 12:53:42 +0000 http://www.ritholtz.com/blog/?p=25860#comment-169530 [...] to Wall Street & Geithner’s plan, but that once they get a hold of that capital, the next shoe drops: It is crystal clear that the scheme over the past two months has been to drive financial stock [...] [...] to Wall Street & Geithner’s plan, but that once they get a hold of that capital, the next shoe drops: It is crystal clear that the scheme over the past two months has been to drive financial stock [...]

]]> By: insaneclownposse http://www.ritholtz.com/blog/2009/05/looking-askance/comment-page-1/#comment-169481 insaneclownposse Fri, 08 May 2009 10:23:01 +0000 http://www.ritholtz.com/blog/?p=25860#comment-169481 I find this type of "black helicopter" analysis very unhelpful to my trading. Bank stocks literally went to zero in March. They were at perpetual call valuations. It's likely that the rally in financials is due to short covering, some savvy real buyers emerging and finally momo players taking over. It's entirely possible that it wasn't an organized pump. These dog stocks might have actually made a bottom. I don't know if you can simply call the rally the province of fools and simpletons...... the fools and simpletons were piling into these stocks on Bove's advice the spring of last year. "generational opportunity"...... now that was a b.s. call for the ages. I think you've needed real courage to buy the financials rally. They might pull back and base for a while, but you can make a case the companies are going to survive and prosper because the Fed is lending to these institutions solvency be damned. I find this type of “black helicopter” analysis very unhelpful to my trading.

Bank stocks literally went to zero in March. They were at perpetual call valuations. It’s likely that the rally in financials is due to short covering, some savvy real buyers emerging and finally momo players taking over. It’s entirely possible that it wasn’t an organized pump. These dog stocks might have actually made a bottom.

I don’t know if you can simply call the rally the province of fools and simpletons…… the fools and simpletons were piling into these stocks on Bove’s advice the spring of last year. “generational opportunity”…… now that was a b.s. call for the ages.

I think you’ve needed real courage to buy the financials rally. They might pull back and base for a while, but you can make a case the companies are going to survive and prosper because the Fed is lending to these institutions solvency be damned.

]]> By: Stress Tests are Geithner’s Redemption - CBS MoneyWatch.com http://www.ritholtz.com/blog/2009/05/looking-askance/comment-page-1/#comment-169094 Stress Tests are Geithner’s Redemption - CBS MoneyWatch.com Thu, 07 May 2009 16:36:46 +0000 http://www.ritholtz.com/blog/?p=25860#comment-169094 [...] will be hoots and hollers that the stress test process was a carefully managed PR event and probably not a true rigorous measurement of banks’ health. Maybe so, but at least the [...] [...] will be hoots and hollers that the stress test process was a carefully managed PR event and probably not a true rigorous measurement of banks’ health. Maybe so, but at least the [...]

]]> By: Bruce N Tennessee http://www.ritholtz.com/blog/2009/05/looking-askance/comment-page-1/#comment-169083 Bruce N Tennessee Thu, 07 May 2009 16:22:07 +0000 http://www.ritholtz.com/blog/?p=25860#comment-169083 Bruce in Tennessee..(writing as Franklin 411) Yeah, but I rode my bicycle over to my Schwab broker, and spent every dime of my extra 40/month Obama-caused stimulus on BGU...because unlike you old grumps at the BP, I am smart! I made 12 1/2 cents in just one day! Life is good. I bought a copy of "Von Mises was Born with 666 Tattooed on His Forehead" for reading next week at my other job. (Delivering papers for the Boston Globe)... Worry warts...! Bruce in Tennessee..(writing as Franklin 411)

Yeah, but I rode my bicycle over to my Schwab broker, and spent every dime of my extra 40/month Obama-caused stimulus on BGU…because unlike you old grumps at the BP, I am smart! I made 12 1/2 cents in just one day!

Life is good. I bought a copy of “Von Mises was Born with 666 Tattooed on His Forehead” for reading next week at my other job. (Delivering papers for the Boston Globe)…

Worry warts…!

]]> By: usphoenix http://www.ritholtz.com/blog/2009/05/looking-askance/comment-page-1/#comment-169029 usphoenix Thu, 07 May 2009 14:57:12 +0000 http://www.ritholtz.com/blog/?p=25860#comment-169029 Well said. Thanks Well said. Thanks

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