Recent Concentration of Volume in Financial Stocks: Coordinated Capital Infusion?
I just wanted to add some color to my recent post regarding why the NYSE TRIN indicator might be broken
Reader Brian adds a very interesting perspective, indicating that he’s watched TRIN and C side by side and has seen a very strong correlation. When C flips from up to down (or vice versa), there is a corresponding huge move in TRIN. This could only be the case if a stock like C comprised a large share of total NYSE volume, which indeed seems to be the case, as noted by The Big Picture blog.
Above I took C, FNM, and FRE and expressed their *composite* volumes (e.g., the volumes transacted across all exchanges) as a fraction of NYSE volume. What we see is that, early in 2007, those three stocks accounted for only 1-3% of NYSE volume. During the financial crisis of late 2008 and again as the market was bottoming in early 2009, that ratio skyrocked to well over 50%.
Recently, however, the volume in these three stocks has hit astronomical levels relative to total NYSE trading, as all three have made phenomenal percentage gains during August. Indeed, the composite volume of these three stocks alone has recently doubled total NYSE volume. If we look at just the NYSE trading of these firms, they are accounting for about 40% of NYSE volume. It is not surprising that Brian would notice TRIN flipping up and down as these stocks change direction.
Again, the question is what all this means. There is no way that mom and pop trader and investor are involved in any meaningful way in generating these kind of daily trading volumes. Nor are proprietary trading shops capable of generating volumes that exceed those of the entire New York Stock Exchange. While I have no doubt that the algorithmic trade close to the market is participating in this movement, the directionality of the involvement suggests that large financial institutions are systematically buying the beaten-up shares of the poster children for TARP: C, FNM, FRE, AIG, and the like.
It is worth noting in this regard that other major (healthy) financial firms, such as GS and JPM, have seen no such surge in their volume or their trading prices.
My best guess? We’re seeing a massive infusion of capital into very troubled financial institutions, no doubt aided by short covering and the participation of program traders and proprietary daytrading firms. Where is the capital coming from? Why has it poured in so suddenly (the really large infusions began in early August)? Why is it coming in at such a pace that it is dominating NYSE volume? Zero Hedge rightly wonders why this hasn’t triggered alarms at the exchange. And why is it happening with only the weakest financial institutions?
If you were the government and you saw that these institutions were on the verge of a major fail, with billions of taxpayer dollars at risk, I’m not sure you’d announce that to the world. Nor, at this point politically, could you ask for yet another bailout package. But you would only pour money into those stocks at a frantic pace (capable of detection) if you perceived a dire need for the capital.
I’m not inclined toward conspiracy theories, but it’s difficult to imagine a scenario in which this is not a (frighteningly necessary) coordinated capital infusion, with taxpayer dollars ultimately at work in financial markets.
.
August 31st, 2009 at 2:53 pm
I am missing something quite basis to the premise of the above, which is: How does trading stocks equal capital infusion to the corporation itself? Please help.
August 31st, 2009 at 2:55 pm
Beat me to that JohnnyVee. the author seems to conflate pouring money into buying stocks in the open market with recapitalizing a company – a very different thing.
August 31st, 2009 at 2:58 pm
It’s another form of QE if you ask me. : )
August 31st, 2009 at 3:05 pm
ZH would probably say that the SEC would explain it all away with a memo about the efficiency of capital markets and rhapsodize about the value of the added liquidity.
From what I have read about HFT, you are just describing churning that is probably intended to get 1/3 cent commissions for bringing business to the exchanges and maybe a few cents from some hapless day traders.
From what I surmise about the UST, Fed, and SEC: an active market is a good market because it makes people less likely to ask important question. It provides a credible distraction.
August 31st, 2009 at 3:06 pm
It may also be interesting to note that C has the largest exposure to off balance sheet entities that may need to come back on the balance sheet due to FAS 140. I am not sure about FRE and FNM, but I believe that C has almost $1,000 billion. Somebody correct me if I am wrong on this as it has been a couple of months since I looked into it. I thought it would matter about 30% ago on the S&P. Silly me.
As for helping the companies, it helps their capital structure look better, especially if all of these entities go back to the balance sheet.
August 31st, 2009 at 3:06 pm
@JohnnyVee 2:53 pm
It works like this: corporations use shelf-registered stock sales to the Fed/Treasury/designated agent of the Fedreasury to bring money in-house. The use of shelf-registered stock sales means it can occur somewhat quietly. Also, they can sell shares held by the companies involved. Either way, it amounts to shares of worthless stock being exchanged for cash.
Another way is for the Fedreasury to buy shares on the open market, pumping up the prices of the shares and boosting the balance sheet valuations of any shares held by the companies in question. But that way is a bit indirect and not nearly as efficient as buying the shares directly from the companies.
August 31st, 2009 at 3:07 pm
Banks buying banks!!! Seriously, the story we are being told is that these are retail investors buying this stuff.
The same folks who were flipping houses are flipping C. This will end when they all go back to flipping burgers.
August 31st, 2009 at 3:12 pm
Hot Dog! It’s the Conspiracy Theory World Series! And I’m at bat …
Ok, let’s try this one … the Fed is printing money and buying shares in the Fantastic Four (nod to Marvel Entertainment, Disney’s newest crown jewel). But but but … you say, why is the government (and regardless of any theoretical nonsense, the Fed IS a part of the government) buying shares in AIG, FRE, FNM, they are already in “government conservatorship”? My answer to that involves how much of their stock and bonds (especially bonds) are held by large parties (China?) that do NOT want to see the companies blown out like candles in a hurricane if the truth about their financial state should become known.
August 31st, 2009 at 3:12 pm
On the other hand, it looks a lot like a pump and dump, only the dump part hasn’t happened yet. Maybe Uncle Stupid is allowing the churn to make his companies look good, but the churners just might have an oops moment up their sleeves later.
We all know that Uncle Stupid won’t be able to stay mad at his favorite conspiratorial iBanks for long.
August 31st, 2009 at 3:12 pm
Constantn: Thanks.
August 31st, 2009 at 3:14 pm
@constantnormal 3:06 pm
Is there any shred of evidence that this volume in C and its cohorts is a result of sales of shelf-registered stock, or is that merely speculation? Dr. Steenbarger’s premise is so obviously built on a fundamental misunderstanding of what happens in capital markets that it may not be productive to even continue this discussion absent evidence that the pumped volumes are due in part to sales of stock by the companies themselves (which I consider most unlikely).
August 31st, 2009 at 3:17 pm
The possibility does exist that this is an attempt to transfer common shares in FNM from SWFs and pension funds to Johnny Retail. But the bonds don’t seem to be moving, and that’s where most foreign investment was directed.
Personally we like the idea that this is Johnny* buying bargain basement stocks, with encouragement from Brian*.
*Brian the Broker, our esteemed representative of the Street’s beloved and ever-credible sell-side.
*John Q. Retail, our eager and ever-credulous inwestor, as ever in thrall of Brian and his yacht.
August 31st, 2009 at 3:32 pm
On a larger scale, look at the S&P today from about 11 am to 2:30pm. It looks like the major brokerage HFT programs are running a ‘prisoners dilemma’ scenario. This is not the same stock market that existed even as recently as 3 years ago. On some days, you can almost see the HFT math kids high fiving each other for making the perfect chart that day.
August 31st, 2009 at 3:41 pm
So the increase in share price increases TCE (The self-same TCE that is Treasury’s current preferred metric of bank capitalization). OK.
But how does that matter? I thought the “stress tests” were a one time deal. Regulatory forbearance and tolerance of queer accounting is the order of the day (a la Latin American debt crisis and Japan), so the banks have the implied green light to “fake it till you make it” on their statements. All are being funded via the Fed. We’re done with the TARP for everyone charade and their distressed financial condition is now an open secret. There is an implied taxpayer guarantee to debtholders and counterparties, The markets seem to be under a bit less stress. Who do they need to impress and Why? The only thing I can come up with for the motives of Mysterious Dark Forces® is some variant of a pump and dump or the mother of all confidence games.
August 31st, 2009 at 3:41 pm
@JohnnyVee 2:53 PM
Legit question; thanks. As I tried to clarify in my follow up to this piece, lifting the shares of these companies would provide capital infusion to the extent that the rally (and story regarding the companies’ viability) enabled the firms to raise additional capital. It’s tough to raise capital as a zombie languishing at two bucks a share, and the political will for additional bailout is nil.
http://rurl.org/1t0o
Brett
August 31st, 2009 at 3:43 pm
Conspiracy Theory #2
SkyNet has failed in its attempt to gain control of the nuclear launch codes, and is taking an economic approach, using HFT to pump the markets up using “vacuum energy” and high-speed check kiting, and will, on “Judgement Day”, apply its store of profits to shorting the markets and crashing the global economy, leaving digital fingerprints that will implicate nation X as the perpetrator, along with some recently “discovered” incriminating emails, which in turn leads to raised voices, threats, and ultimately nuclear war.
August 31st, 2009 at 3:44 pm
@Constantnormal re: Johnny Vee:
So you’re saying that these banks are actually selling shares to investors (in this case, theorized to be USG) and that “trade” is shopping up as trading volume on the chart?
August 31st, 2009 at 3:47 pm
If this was real money, these companies would be issuing bonuses entirely in stock options.
August 31st, 2009 at 3:50 pm
@ Brett
Sir, no disrespect intended by the Conspiracy Theory World Series — I’m just having some fun with your well-reasoned analysis and question. Hope you do not take offense.
August 31st, 2009 at 3:53 pm
constantnormal Says:
August 31st, 2009 at 3:43 pm
SkyNet has failed in its attempt to gain control of the nuclear launch codes, and is taking an economic approach …
reply:
———–
No, but the Chinese are in a position to win a war (WW 4?) that was never declared without a shot ever being fired. And Uncle Stupid is still thinking ‘terrorists’ rather than ‘opportunists’. The Chinese have practically all the money in the world and they are not afraid to use it. Given the weakened condition of the rest of the world, all they need is a plan and time.
August 31st, 2009 at 3:55 pm
From Brett’s follow up:
On the surface, this makes sense. The S.E.C. has been toying with the idea of reinstated curbs on short selling, and this could spark short covering among financial firms. Indeed, according to the ShortSqueeze site, C, AIG, FNM, and FRE have large short positions as of the most recent report, amounting to approximately 11%, 20%, 6%, and 10% of their total floats respectively.
Once we look at the magnitude of the recent activity in these stocks, however, the idea that this rise is largely a function of short covering becomes implausible.
That would only make way too much sense that the SEC tries to curb short selling again, you know, b/c that worked out so well for the banks last year. I know I’m only stating the obvious here but the SEC is still completely clueless for all to see. It would be a fitting change by them just before another huge leg down.
August 31st, 2009 at 3:57 pm
@aupanner 3:44 pm
I’m just having fun here. All I intended by that answer was to show a way that the government could inject capital into these companies without any sort of public disclosure that they are doing so.
I have no idea what is going on here. But if you line up all the players that are large enough to be able to accomplish this, it is a fairly small lineup — USG, large hedge funds, GS, MS, JPM, certain national interests …
I doubt very much that retail investors have enough capital remaining to accomplish this.
I also believe that this is too big a deal to be kept secret indefinitely. Sooner or later, it will all become clear.
August 31st, 2009 at 3:59 pm
I meant to add PIMCO to my lineup of suspects ….
August 31st, 2009 at 3:59 pm
With stock prices dropping 90%, wouldn’t you expect to see volumes increase 10x?
August 31st, 2009 at 4:01 pm
@constant,
I agree that first option you laid out is possible, who knows. It’s really no so hard to imagine these things anymore. I actually posted your response above on the thread below this. At the very least, having $2 stocks go way up should help them raise their own capital as Brett suggests.
August 31st, 2009 at 4:06 pm
@DonRobbie 3:41 pm
I thought the “stress tests” were a one time deal.
Yeah, but when the folks that passed with flying colors come back to the bailout trough for a refill, there will clearly be a need for “improved stress tests”.
That cycle can be repeated many times, by many different political administrations. Just look at Japan.
August 31st, 2009 at 4:07 pm
“”It will not be too bad this year. Both China and America are addressing bubbles by creating more bubbles and we’re just taking advantage of that. So we can’t lose,” he said.”
Lou Jiwei, the chairman of the $298 billion China Investment Corp sovereign wealth fund.
http://www.reuters.com/article/ousiv/idUSTRE57S0D420090829
So, it’s bubbles is it? And the China sovereign wealth fund is doing their part in the blowing. Maybe they’ve been busy buying these wonderful American “value stocks.”
August 31st, 2009 at 4:08 pm
“It’s tough to raise capital as a zombie languishing at two bucks a share, and the political will for additional bailout is nil.”
seems plausible then that this would be a way to provide these institutions w/ more capital so they can tread water for a while longer-
that it is regular schmos causing all the volume seems very unlikely
karen-
i remember a post from you several weeks ago throwing water on conspiracy theories-
becoming a believer?
August 31st, 2009 at 4:12 pm
“skyrocked to well over 50%”
Actually some of the numbers on that graph seem to be a bit over 100% and that is a little problematic
August 31st, 2009 at 4:16 pm
“that it is regular schmos causing all the volume seems very unlikely”
except that it is the last week of August and volume is incredibly light… the same was true this time last year.
August 31st, 2009 at 4:17 pm
here is a good article- saying w/o the savings of the top 1% of income earners- the saving of the rest of the 99% of earners would be negative-
so much for the savings myth- hard to save when you are underwater-
as i said before- better to default and have money to survive than try to do “the right thing” and honor your commitments to the bank if it keeps you in serfdom-
the new “land reform” = debt default
August 31st, 2009 at 4:18 pm
oh- here is the link from NC-
“The Savings Rate Has Recovered…if You Ignore the Bottom 99%”
http://www.nakedcapitalism.com/2009/08/guest-post-the-savings-rate-has-recoveredif-you-ignore-the-bottom-99.html
August 31st, 2009 at 4:21 pm
@ constant
And just who is PIMPCO owned by?
http://en.wikipedia.org/wiki/Allianz
And what have they been up to recently I wonder…
http://www.allianz.com/en/press/news/financial_news/business_results/news_2009-08-17-2.html
August 31st, 2009 at 4:23 pm
@ahab: “Saving” for “We the Sheeple” = paying off or defaulting on debt. It’s likely not actual “savings” per se, in the bank, for the most part……
August 31st, 2009 at 4:27 pm
Is this “normal” or am I just donning the tinfoil cap today? Is it normal for after hours activity be much higher seemingly day after day and spike immediately upon marketing closing? I’m honestly clueless on this one. Maybe someone here can shed some light.
http://www.zerohedge.com/article/trading-now-exclusively-after-hours-affair
August 31st, 2009 at 4:28 pm
“Saving” = “not spending” = debt payments + piggy bank. Makes no sense to feed the pig until you’ve fed the card.
August 31st, 2009 at 4:31 pm
@ben22 4:01 pm
So long as I get credit for a base hit, I’m ok with that.
I think that the meme (occurring in many, many forms) that Truth is Stranger than Fiction will ultimately apply here.
Our system is so broken that it is ludicrous to try and perceive it in any rational, functioning kind of way — things are simply in a slow-motion state of chaotic collapse, with some parts moving up and some moving down, but by the time things stabilize, all the pieces will be at rest on the floor.
August 31st, 2009 at 4:31 pm
mannwich-
i hear you- was just trying to debunk the idea that magically- regular folk are putting 5% of their discretionary income aside-
there is no discretionary income- unless- as you say- you default- that you reject the obligation- that you take back the land from the “lords”-
modern day “land reform”
August 31st, 2009 at 4:32 pm
ahab
That’s been my suspicion all along. That most, if not almost all, of the new “savings” was really debt repayment or default. We’ve known for quite some time that most people have been living paycheck to paycheck with almost no savings; or worse in a deficit, sometimes quite large. In order to carve true savings in the form of excess cash flow deposited, there’s going to have to be a serious drop in consumerism. Not a news flash, but still doesn’t seem to have sunk in with many of the V recovery believers.
August 31st, 2009 at 4:32 pm
@constant: Agreed. I’ve said it before and I’ll say it again, we’re in a state of suspended animation waiting for the other shoe(s) to drop or be thrown, if you will……
Oddly, I’ve very nearly come to terms with it all. Bizarre.
August 31st, 2009 at 4:42 pm
@Mannwich 4:23 pm
It may interest you to know that I am opening a boutique that markets the most stylish and attractive tin foil hats, with anodized coloration. I’m gearing up for the Next Big Thing, and am even now hiring for a second shift. It’s the new growth industry among those “in the no”.
But I do not bring this up merely as a matter of novelty. I am also the exclusive agent of the Bank of Nigeria in this regard, and they are major investors in my enterprise. If you will send a small “participation and registration fee” ($1500.73, cash-only), you can sign up to be a participant in the IPO for this thrilling new enterprise.
August 31st, 2009 at 4:45 pm
@constant. Excellent. Just give me your email address and I will PayPal you immediately. I want in on this can’t-miss investment first.
August 31st, 2009 at 4:51 pm
As I recall, last fall a number of the major banks, including C, got permission for major new stock issues as a way of shoring up their capitalization.
So their stock prices are trading significantly higher in spite of dilution. Odd?
August 31st, 2009 at 5:38 pm
Interesting read by Robert Kiyosaki co-author of, “Rich Dad, Poor Dad”:
“Preparing for the Worst”
http://finance.yahoo.com/expert/article/richricher/184720
Kiyosaki’s thoughts on market manipulation seems to be confirmed by this blog post.
August 31st, 2009 at 5:59 pm
“coordinated capital infusion, with taxpayer dollars ultimately at work in financial markets.”
And who in the USG would behind this? The FED?
August 31st, 2009 at 5:59 pm
cn,
w/this–”…the Fed IS a part of the government.” @ 03:12 pm
and b/c you have sufficient timber, and timbre, to withstand the point, Note: The FedRes is Not part of the ‘government’, they are, at best, and most charitable, equal partners, with the ‘government’, in a Governing duopoly.
And, in view of “Give me control of a Nation’s money, and I care not who makes its Laws.”, they, the FedRes are, for all practical purposes, the Master string-pullers that use our ‘government’ as little more than Marionettes to entertain/distract us.
http://www.thefreedictionary.com/marionette
August 31st, 2009 at 6:15 pm
Pardon my ignorance but when an equity is over $5.00 a shares is it marginable and OK for pension and other institutionalized cretants to buy?
August 31st, 2009 at 6:17 pm
“ifting the shares of these companies would provide capital infusion to the extent that the rally (and story regarding the companies’ viability) enabled the firms to raise additional capital. It’s tough to raise capital as a zombie languishing at two bucks a share, and the political will for additional bailout is nil.”
Anyone want to bet this is a (very) big reason why the Fed will do whatever it takes to avoid a real audit?
Making it official that the Fed manipulate markets to that extent (directly or indirectly does not really matter does it?) would be their kiss of death.
August 31st, 2009 at 6:19 pm
If the USG,GS, JPM or all three entities are long the market then isn’t buying on the dips the only wise thing to do.
August 31st, 2009 at 6:26 pm
question-
is there anyone out there that does not believe that the markets are being manipulated by the fed?
my impression is that congress will be forewarned about the slopped up mess the Fed has become and will decline to audit- if only to keep some amount of faith in the system-
to keep it from imploding in short order- if all was transparent
August 31st, 2009 at 6:31 pm
or if there was an audit- it would be in the same category as the “stress tests”- not credible- designed to only create the impression that things are ok-
i am wondering if this will all turn into an event where the “masterminds” at the top find themselves in leg irons before the courts-
for fraud and perpetrating a global ponzi scheme
August 31st, 2009 at 6:33 pm
@aitrader:
Kiyoski makes some valid (and obvious) points in this link. However what he fails to discuss (and anyone who has ever read his books will not be surprised) is debt. Kiyoski built his wealth orginally through real estate and leverage in an environment of easy money and increasing property values then branched out in to his Rich Dad, Poor Dad enterprise. Unfortunately easy money is a thing of the past and property values, well I thinkwe all know this story. All of Kiyoski’s arguements are valid however he should have mentioned an unwinding of debt as another reason the worst is yet to come. I couldn’t believe the CEO of Douche Bank today on CNBC stating how great his bank was doing as they are now only leveraged 20 or 25:1. Please, what happens if those assets drop in value by 5%? Shish, foolish me I forgot, they’ll get more money from taxpayers – after they fail to acknowledge the loss, of course keeping the assets at purchased value rather than market value. Kiyoski’s number one reason to prepare for the worst should have been the rules of the game haven’t changed and we all know how that worked out last time. This time, same rules except big banks were essentially given a blank cheque endorsed by the FED.
August 31st, 2009 at 6:37 pm
@ahab
” … if this will all turn into an event where the “masterminds” at the top find themselves in leg irons before the courts”
T’will never happen — the “masterminds” would have to be willing to put the leg irons on themselves, as there are no higher (temporal) authorities to bring them to justice.
August 31st, 2009 at 6:46 pm
@ahab
“is there anyone out there that does not believe that the markets are being manipulated by the fed”
Dude,
The fed wouldn’t do that, they are our friend.
Ya, I’ll go smoke another bowl now and eat a fedora or two.
August 31st, 2009 at 7:02 pm
“The fed wouldn’t do that, they are our friend.’
dude- lay off the magical ’shrooms-
speaking of which- i am quite the mushroom hunter- many good varieties in the Shenendoah Mountains- beefsteak, chanterells, hen of the woods, angel wings, oysters, hedgehog- etc.-
i know there are quite a few “medicinal” ones that grow there as well- but haven’t actively searched for those- yet
August 31st, 2009 at 7:33 pm
Of course most of the general public would think that manipulating the markets to go up is a good thing. “What could be wrong with having stocks worth more and making more money?”, they’d say. You know the sentiment. If they thought about it for more than 2 seconds and applied any amount of critical thinking they could probably get there (OK, many would have to be led there with hints). Kind of like the shallow thinking that targets short sellers as evil and harmful (and no, I’m not defending naked shorts).
August 31st, 2009 at 7:39 pm
Since GS and JPM aren’t seeing this infusion, are they the institutions doing the Fed’s bidding on the others?
August 31st, 2009 at 7:59 pm
Pardon my ignorance. I just don’t know how it would work. Would the Fed debit (or credit?) those institutions accounts and ask them to buy shares? Is this something the Presidential Working Group was designed to do?
August 31st, 2009 at 8:04 pm
Concentration in financial stocks? Hell yeah! Look, when the music stops, there will be a massive rush to the exits. I only wish I knew when the fat lady was over.
August 31st, 2009 at 8:12 pm
The Fed/Treasury need to find ways that aren’t subject to public disclosure (Bloomberg case) to pump capital into these big fin firms before somebody starts liquidating the shadow inventory of foreclosed homes. The FDIC which is quickly running out of cash, is going to liquidate some foreclosed banks holdings which will lead to a selloff of shadow foreclosures in certain areas and that will be the run, baby. Like a bad SM without the circuit breaker.
August 31st, 2009 at 9:18 pm
Robert Kiyosaki reviewed
http://www.johntreed.com/Kiyosaki.html
August 31st, 2009 at 9:38 pm
So, really, in addition to the demise of the Five US broker-dealers and 2 of 3 US car manufacturers and millions of US homeowners and a bunch of banks and the world’s largest insurance company and any sense of economic fairness and decency of the US Treasury and Fed, we can now add the US stock market. Apparently it is now simply a fake market, a carny geek show… whatever.
August 31st, 2009 at 11:21 pm
Leftback.. was it u that liked “The Road”?
Author Cormac McCarthy’s post-apocalyptic vision of the world in “The Road” makes it to the big screen, with Viggo Mortensen starring with Theron.
August 31st, 2009 at 11:42 pm
So BR, to quote the Book, is this thread part of the “preawareness stage?” I am ready for the next dose of reality, something tells me wash. DC however prefers denial……..
September 1st, 2009 at 12:03 am
moss-
“the road” was heavily talked about by CNBC sucks- good book- give it a read-
could easily be made into a movie
September 1st, 2009 at 12:06 am
Nice summation, wally.
September 1st, 2009 at 12:18 am
Where the New PPT Hides
This article draws connections between the greatest financial bubble of all time and how the Fed uses names like AIG in a Ponzi scheme to offload U.S. debt. Hopefully it will be so obvious you’ll feel sick. It also explores High Frequency Trading and the myth of savings accounts.
http://www.gamingthemarket.com/2009/08/where-the-new-ppt-hides.html
September 1st, 2009 at 8:37 am
[...] back to good old 9,500. The movement is getting so aggregious that even conspiracy theory-hating Barry Ritholtz is now saying: “I’m not inclined toward conspiracy theories, but it’s difficult to imagine a scenario [...]
September 1st, 2009 at 8:46 am
Does it make sense to wonder what other holders of these shares would benefit from their share prices rising or from being able to cash out at a better price?
Pension funds, insurance companies etc.?
Or perhaps what equity derivatives would bust at low levels? Is is possible that ’someone’ is gaming the prices so they don’t have to pay out?
I suppose anything’s possible nowadays, so perhaps it is better to ask is it likely?
September 3rd, 2009 at 12:37 pm
[...] 2 — From Recent Concentration of Volumes in Financial Stocks: Coordinated Capital Infusion? C = Citigroup, FNM = Fannie Mae, and FRE = Freddie Mac. Trading volumes for these 3 stocks have [...]