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Global stocks rally lacks fundamentals
HONG KONG (Reuters) - Aberdeen Asset Managers has been adding some cyclicals such as PetroChina (0857.HK) and Rio Tinto (RIO.AX) to its global stocks portfolios but is cautious on the month-long rally in equities because it lacks a fundamental basis.
Jamie Cumming, senior investment manager on the global equities team of the UK fund manager, in the last six months has used strength in defensive stocks to buy shares in the materials and industrials sectors, but is not convinced the problems that started the financial crisis are close to being solved, he said on Friday.
"People are assuming that they have seen the worst in the last couple of quarters, but I'm not so sure. There doesn't seem to be a significant amount of fundamentals supporting this rally," the fund manager said in an interview in Hong Kong.
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Jeffrey Sachs: Geithner Plan Is An "Unconscionably Large" Rip-Off
Jeffrey Sachs, one of the early critics of Tim Geithner's Public-Private Investment Partnership scheme, is admitting he was wrong about the program--it's far worse than he thought.
The worst problem is that it is completely open to being scammed by banks because it allows the banks selling the toxic assets to be buyers as well. This creates the potential for a daisy-chain scam: a bank creates an off-balance-sheet entity that buys bad assets for far more than they’re worth, using money borrowed from taxpayers. When the assets turn out to be worthless, the bank-created entity then defaults on the loan. Because the loan is non-recourse, the government is left holding the worthless assets and is out the entire amount of the loan. In effect, the plans lets banks write themselves checks straight from the US taxpayers.
Originally posted by marg6043
reply to post by stander
Then you wonder who they are fooling, but then again The government has given the right to banks and financial institutions to post only good news amid the bad ones, so hey that doesn't mean businesses can not do the same.
reply to post by stander
~ enchilada! ~
It's all just a damming experience...
~ Mucinex! ~
Hmmm...all is better now...
Pelosi Sets Wall Street Probe Modeled on Pecora in 1933 After Market Crash
April 21 (Bloomberg) -- Wall Street may be heading for the deepest investigation of its practices since a congressional panel’s probe of abuses following the 1929 stock market crash.
House Speaker Nancy Pelosi plans to push for a comprehensive inquiry, saying that three-quarters of Americans want to know what led to the bankruptcy of Lehman Brothers Holdings Inc. and the collapse of Bear Stearns Cos. and Merrill Lynch & Co. She favors one patterned after Senate Banking Committee hearings led by Ferdinand Pecora starting in 1933, according to her spokesman, Nadeam Elshami.
The Pecora review “was probably the single most important congressional investigation in the history of our country, except perhaps the Watergate hearings,” Donald Ritchie, associate historian for the U.S. Senate, said in an interview.
Wall Street Crash of 1929 and its aftermath
The impact of the Wall Street Crash :
1) 12 million people out of work *Half way there*
2) 12,000 people being made unemployed every day *Hmmm*
3) 20,000 companies had gone bankrupt *Working on it*
4) 1616 banks had gone bankrupt *See above*
5) 1 farmer in 20 evicted *See above*
6) 23,000 people committed suicide in one year - the highest ever *Japan closing in*
Bank of NY Mellon cuts dividend as profit falls
NEW YORK (Reuters) - Bank of New York Mellon Corp said first-quarter profit fell by more than half as fees tumbled, and the bank slashed its dividend 63 percent in an effort to build capital.
Net income attributable to common shareholders declined 57 percent to $322 million, or 28 cents per share, from $746 million, or 65 cents, a year earlier, the bank reported on Tuesday.
The latest results included 21 cents per share of charges to write down goodwill and investments, and 4 cents per share of merger costs. The bank said revenue fell 22 percent to $2.93 billion.
Americans are increasingly exposed to losses, and the government is more vulnerable to fraud, under initiatives that have created a federal bank bailout program of "unprecedented scope," a government report finds.