U.S. Financial Markets Are One Big Fraud

Hey, big guy:  Did you see where Factset focused on Amazon lowering its eps from positive 15 cents to negative 13 cents?  Amazon rallied.  I am beginning to understand investing now. The trick is to lose as much money as possible and either be loved by wall street or loved by the Fed (which I guess is Wall Street).  Anyway this debunks what I have been using for decades; looking for companies with accelerating revenues and earnings, real quality earnings, in which to invest.  Apparently the trick is to make a good sales pitch.  If you can’t dazzle them with brilliance, baffle them with bullshit.   –  comment from “Hal”

Yes, Hal.  AMZN is going to lose money in Q1.   They are projecting their operating loss to be as high as $450 million.  If they were forced to use the GAAP accounting standards used in 1990 – standards which were more stringent and realistic than are permitted today – FactSet would be forecasting a loss that is double the current estimate.

In our fraudulent markets – fraud which is “turbo-charged” by the massive Fed intervention – dozens of companies with little or no revenues now sport multi-billion dollar market caps.  Our stock market makes the Dutch tulip bubble look like a rational and efficiently priced market by comparison.

The valuation measures like price/earnings make it appear as if the current stock market is not as overvalued as the markets of 1929 and 2000.  But that’s strictly a mirage induced by the fraudulent nature of current GAAP standards.  If uniform accounting standards were applied across the board, the current stock market would be, by far, the most overvalued in history.

Big hedge funds move massive amounts of pension/retirement money into the stock market, using bank-provided leverage of course, based on whether or not the Fed decides to use the word “patient” in its policy statement.   To say this is “absurd” is an insult to whomever invented the word.

AMZN is a perfect example of just how ridiculously stretched and permissive modern GAAP accounting standards have become.  When the rug is finally pulled out from under this stock market, AMZN is going to fall like a 1 ton lead weight off the top of the Empire State Building.

My AMAZONdotCON stock report lays out in explicit detail the fraudulent accounting being used.  It shows why AMZN is hemorrhaging cash.   Losses like it will incur this quarter, combined with capex spending on business ideas that lose even more money, will cause AMZN to burn thru quickly the $6 billion in cash it just raised through the highly overvalued and fraudulent bond market.

The Fed-induced money-printing has spawned the biggest stock market bubble in history. The is not going to end well – for anyone.   I asserted back in 2003 that I hoped Alan Greenspan lived long enough to see his name live in ignominy.   But he’s been given a chance to cover up his crimes.   It looks to me like Grandma Yellen – that witless idiot who looks like she’d be more comfortable with a set of knitting needles in her lap than fielding softball questions from a captive media – will be the one of who bears the burden of wearing  the collapse the is coming.

14 thoughts on “U.S. Financial Markets Are One Big Fraud

  1. Dave don´t you think that the only reason Grandma Yellen was appointed was because they needed a “bagholder” that was stupid and gullible enough not to understand that it will blow up under her watch?

    Bernanke and Greenspan rides away in the sunset “because it´s only Yellens fault”

    Its´almost tragicomic

    1. They are putting women & blacks in all the top positions so as the system crashes they will have their new scapegoats to blame.

  2. It’s not about a business making of losing money it’s all about who you know and which team you’re on. Winning teams Amazon don’t have to make money or show a profit, just have the right criminal banksters pumping the stock market. Sounds perfectly natural to me—and a direct reflection of how corporate Amerika has worked for the past 50 years. It’s not about what you know, it’s about who you blow!

  3. Dave I have been wondering about a thing.

    Do you think we have reached the stockmarket top know in order of pumping it up with QE?

    Is the market so hard pumped up that even QE 4 will fail to drive it even higher?

    There must be a limit when it stops to work and all credibility is lost.

  4. The FED-in their craven nature, placed Granny Clampeet in there by design. They couldn’t use a black; those in high offices currently have way too many issues (any minority sensitive one’s out there, GET OVER IT), ala Raines at FANNIE MAE, to be less likely to be challenged and flamed, so what made the most sense? What type of figure would generate the least blow-back, criticism and resistance? An aging, gray-haired, white, woman; FED bankster. This woman is almost 70. Can’t see a Ron Paul type flaming her in a Senate hearing.
    I used to see a lot of anti-Bernanke stuff. Nothing close on Granny.

  5. The problem with being on the opposite side of the trade right now is who you’re up against. Everyone knows it’s a zero-sum game – someone always has to be on the losing side. It was one thing back in the ’90s when it was me trying to outsmart other investors, trying to find value where they missed it, or overpriced crap that others myopically adored. It still wasn’t a fair fight…I learned long ago that there is always someone with more info than me, info they’re not supposed to have. But it was still investor vs. investor. Now, it’s you against Central Banks. That’s who you’re up against, in the solvency race, the information race, the timing race. And they want the market to go higher. No matter how wrong they may be, it’s not a race I can win. You guys know the old adage, and it’s true again – the Fed can act irrationally much longer than I can stay solvent. So I’m doing like Joshua in “WarGames”…the best move for me is not to play. Those of you taking on the Fed, and still in the race, my hat’s off to you. You’re going to make a truckload of money if you’re still standing when the game ends. And here’s to hoping you can still enjoy it, too.

      1. We are up against all the secret societies marching in unison. The Zionists, Jesuits, Skull N Bones, Freemasons, etc, etc.

  6. Look at today sh**show. Etfs halted trading, earlier some self help declaration. ZeroHedge had article. This is utterly embarrassing….

  7. It’s the perfect crime Dave. AmaCON can undercut the pricing of the big box retailers like Target and Best Buy (Sears, JC Penny and K-Mart are ghosts), effectively putting them out of business over time, all while enjoying a valuation many multiples higher than those aforementioned PROFITABLE companies who must play by a different set of rules. AmaCON is killing other retailers because of this criminally unfair advantage and unlevel playing field.

  8. When the rug is finally pulled out from under this stock market…

    “When”…that’s the key word right there, or should one say “if”? The ability of the powers-that-be to maintain their privilege, can kicking, price rigging and shenanigans is nothing if not breathtaking to behold. Who is to say they cannot keep their game going for many years to come?

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