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Insider Selling To Buying: 2,341 To 1
Submitted by Tyler Durden on 10/05/2010
Sorry kids, we just report the news... as ugly as they may be. After last week saw an insider selling to buying ratio of 1,411 to 1, this week the ratio has nearly doubled, hitting a ridiculous 2,341 to 1. And while Wall Street's liars and CNBC's clowns will have you throw all your money into "leading" techs like Oracle and Google, insiders in these names sold a combined $200 million in stock in the last week alone (following Oracle insider sales of $223 million in the prior week). Insiders can. not. wait. to. get. out. fast. enough. This Fed-induced rally is nothing short of a godsend for each and every corporate executive.
Shares in Citigroup jumped more than 3% after the third largest US bank posted strong profits for the third quarter.
Citi made $2.2bn (£1.4bn) between July and September, above analysts' forecasts and much higher than the $101m profit for the same period last year.
The Wall Street giant, still 12%-owned by the US government after bailouts, cut its provisions for bad debts...
...But revenues for the quarter were down almost 6% at $20.7bn.
The revenues were hit by poor performance at the bank's bond and credit derivatives trading business, during a three month period in which markets sold off sharply...
...Citi's shares opened 3.1% up, sparking a jump in the stock prices of rival banks.
Share prices among big US banks fell heavily last week amid fresh concerns about firms' exposure to the troubled US housing market.
"Financials have tried to weather the storm from the last couple of days, today helped by Citigroup," said Steve Goldman, strategist at US-based broker Weeden & Co.
However Matt McCormick, fund manager at Bahl & Gaynor Investment, said he was concerned about Citi's fall in revenues.
"It's a problem for all the banks now. They have trouble raising revenues," he said.
"Reducing loan loss reserves is not something you can do indefinitely. Eventually, they'll get to the point where they'll say, 'we can't keep going down this path'."..
...Meanwhile all 50 US states began investigations on Friday into the banks' foreclosure process...
Originally posted by ararisq
reply to post by Surfrat
Newbie question: Benanke sees case for more Fed easing. The story is from 9am EST and states that the USD started to fall on the news but at the same time there was a sell of of gold from $1385 to $1365 and an eventual rise in the USD index from 76.20 to 76.90 all in a short period of time.
The explanation on the news is that there was profit taking on gold ahead of Bernanke's speech. Does that make sense? I suppose it does if you wanted to convert from gold to a different currency other than the USD expecting that other currency to rise on the news? Am I right on that?
I know the USD has fallen to a new low against most of the currencies in the index - so why the big jump shown here?
US Dollar Index Chart
Millions of Britons, including people of Indian origin, were in a state of anxiety as the fine print of 'axe Wednesday' led to the realisation that the country was in for a prolonged period of protests and pain. As Chancellor George Osborne unveiled the Comprehensive Spending Review (CSR) in the
House of Commons, it became clear that all sections of society - including Queen Elizabeth - would be worse off in these times of recession and uncertainty.
Soon after he concluded his speech, protests began in London and elsewhere.
There are already fears of Britain witnessing France and Greece-style public protests as the public spending cuts begin to hit haemorrhage people's lives.
More dangerously, the junk bond companies that have borrowed too much will default, throwing their employees out of work and causing more humongous losses all over the system. Naturally, faced with this further crisis, the economy will collapse again.
And so Wall Street's 2009 and 2010 bonuses, just like its 2004-2007 bonuses, will end up being paid from the losses incurred by everybody else after the inevitable crash. And when we've dug ourselves out from the rubble, we will again be poorer than we were before - the U.S. economy's enormous competitive advantage of capital will have been further eroded.
You know people, before the crash many here including me told the story of how Americas economy was an illusion and guess what, no even a crahs like the one we just had have change that, American corporate mafia still lives in prosperity illusion but this time is not at the expenses of the fools they take their money from and given willingly is now at the expenses of tax payer in the nation.