Cooking the Books

Discussion in 'Economics' started by piranahfishy, Oct 15, 2009.

  1. people forget about the phony bank and corporate accounting. totally explained here. The Enron model never went away.amaziing how this is all a charade and smoke and mirrors. LMAO reading it but its spot on.
  2. Below is comment from blog which I thought raised some good points..

    My question is how is Tiffany (TIF), Urban Outfitters (URBN) very near its all-time high (in this economy!), Kohl’s (KSS), Abercrombie and Fitch (ANF), Target (TGT), Nike (NKE), Under Armour (UA), The Gap (GPS), Starbucks (SBUX), Retail Holders ETF (RTH) all at new 52 week highs?

    This isn’t even a comprehensive list. Why are Wal-Mart (WMT) and McDonald’s (MCD) not at the same 52 week highs (I ask this question rhetorically)? Note the former list of 52 week high stocks sell primarily discretionary non-essential goods (scented candles as I will say to characterize unnecessary crap that people don’t need to drop a dime on).

    Both WMT and MCD sell more essential products priced at value for the consumer. The former stock list has the antithesis of this: all goods priced at premium margins selling crap (scented candles) that people don’t require.

    Wal-Mart for instance sells groceries (essential goods) and MCD won’t rip you off to have a meal or coffee. Both WMT and MCD were at their 52 week highs when the DOW was nearly 1,000 points lower than it is now. Why? Because Wall Street sentiment was that MCD and WMT are recessionary stocks that will do better in a recession as people will have less money and buy only what they need with some possible limited discretion spending (loose fun spending) at a WMT and eat out at a McDonald’s.

    As both offer value people with less money will go there as they are watching their pennies. But now that we are out of recession as Elmer FED Ben Bernake (Pancke) said
  3. i do believe part of monopoly money is distributed to selected (probably ones most indebted) retailers via virtual purchases. Nothing one can do about it. printing press guys choose whose crap will "buy".

    Beeing short these stocks..... one should be careful as printing press may be on the other side of trade.

  4. it's just money flowing into these stocks rather than them doing well, imho, aznd if they post "above expectations earnings" it's a sign to put money into it, " less bad is good" "two legs bad four legs good" it's like you can't tell the pigs from greedy human anymore.
  5. So essentially Fundamentals are pointless and meaningless. I think we can all agree on that. and me thinks this is what this guy is saying in his article. and you are saying its just money flow. so if the money is flowing it will basically flow anywhere regardless of the econominc realites.