Wednesday, October 21, 2009

Stool check time for the bulls

How about Wells Fargo and their "earnings?"

What a piece of work that was. $6.6 billion of unrealized gains because of narrowing in credit spreads, and $2.4 billion extra from expenses that won't be needed in the Wachovia acquisition.

Heck I sharted, then shorted that name! But I covered at the close, even though the earnings were a work of fiction!

The bears had their stool check.

Today was one for the bulls.


Anonymous said...

Very strange. Since most analysts had indicated the 1-times in the am. Yet the stock opened up, which i agree it should not have. But then the selloff into the close was clearly engineered.

Anonymous said...

Thats the scam going on in the banks that had the interest only option arm mortgages things. They book interest that WOULD have been paid but is only really accumulating on the p&l sheet. So alot of that booked interest is likely to be reversed as mortgages default and the real money is not collected. But on wall street there is little difference between fiction and reality.