A growing number of Wall Street experts have become increasingly critical of companies highlighting adjusted earnings. Also known as non-GAAP, these adjusted earnings are repeatedly being used to deceive investors...
- The Truth About Non-GAAP Earnings - You're Being Deceived
- Here's the Size of the Scam the Fed and U.S. Companies Are Pulling on Us
- Fed Opacity is Suffocating the Markets
- Four Notorious Cases of Stock Manipulation
- 4 Stock Market Conspiracies That Just Might Keep You Up at Night
Stocks have been on a tear. After looking weak in February, they've soared close to 13% in a matter of weeks.
So why does it all feel like a magic trick? Why isn't the market rally giving investors any solid feelings? Why is everyone so nervous?
Market observers continue to give short shrift to the fact that the Federal Reserve is the perpetrator of the "Red Wedding" in the markets. The Federal Reserve doesn't trust the markets. It thinks it knows better than the markets how to set the price of capital and create the conditions for economic growth.
Every once in a while, we get an errant number like the revised second quarter GDP number of +3.7% to tease us into thinking that they know what they are doing. But once we look below the headline number, we find the same weakness that has plagued the economy since the financial crisis. Years of ZIRP and QE have suffocated the economy in too much debt that will continue to smother growth for years to come.
The Fed continues to speak out of both sides of its mouth, when its best course of action would be to say nothing. On Wednesday, New York Fed President Bill Dudley sought to calm markets by saying that the case for a September rate increase was "less compelling." On Friday, Fed Vice Chair Stanley Fischer said that a September hike was still a possibility.
In some of the most notorious cases of stock market manipulation, the audacity and self-assuredness of white collar fraudsters is hard to believe...
These market big-wigs thought they could get away with anything, unscathed.
There are some stock market conspiracy theories out there that seem astoundingly plausible. Take market manipulation, for example...
Oh, wait. That really does happen! Five banks just pleaded guilty to that on May 20 and were ordered to pay a fine of $5.7 billion.