Vet67to82's Blog : Thursday 5/27/2010 = Soapbox Time

Yesterday we had a good market rebound ... right up until the market manipulation on Microsoft ( MSFT ) to give APPLE's ( AAPL ) market cap the lead and the false China rumor. ALL of yesterday's trading in Microsoft should be reviewed by the SEC. As to the The Financial Times report ... that should be reviewed by the SEC as well. False rumors should be investigated as a market manipulation. Was any effort made to verify the story BEFORE it was printed ...

Here are two articles on the rumor and one on bank leverage ( FAZ, FAS, XLF, SKF, etc ) ... :

( 1) U.S. stocks resume rally after China calms fears
Dow struggles to clear losses for the week; S&P and Nasdaq already there

http://www.marketwatch.com/story/stocks-jump-as-china-denies-euro-asset-sales-2010-05-27

" ...its rise was interrupted late Wednesday by a Financial Times report that China was considering paring its exposure to European debt, "

"Investors must still be cognizant that the market remains in a correction and the major indices have reversed sharply the last four sessions indicating the market remains uncertain," said Robert Pavlik, chief market strategist at Banyan Partners

"Until a follow-through day confirms an uptrend is under way, buying is risky," he added.


( 2) US Stocks Jump As Spain, China Boost Euro Sentiment

http://www.marketwatch.com/story/us-stocks-jump-as-spain-china-boost-euro-sentiment-2010-05-27

" On Thursday, the China State Administration of Foreign Exchange, which manages the nation's reserves, said media reports that it is considering selling some of it holdings of euro-zone government bonds were "groundless," according to a statement published on its website. The U.S. stock market had slid in late trading Wednesday in a lapse that coincided with a report in The Financial Times that China was mulling sales. "

( 3) Geithner: U.S. commited to bank tax plan

http://www.marketwatch.com/story/geithner-us-commited-to-bank-tax-plan-2010-05-27

" .... the U.S. and Europe agreed on the need for "more conservative restrictions" on bank capital and leverage ..."


-- I disagree with Mr. G. I don't think taxing a handful vs the whole, is fair ... or US Constitutional, ... nor do I believe it is in the USA's best interests to handcuff our banks ... to the extent they'll LOSE business to foreign banks that are NOT similarily handicapped ...

-- Leverage and capital requirement NEED to be imposed globally across all the financial institutions and ALL the PARTICIPANTS in the global financial markets. Clearly, over leveraged customers, operating in one, or more markets, can just as easily undermine the health and well being of the institution holding its accounts.

Wrong bets like naked shorting where the client hasn't, can't, or won't cover because the market, sector, industry, company, bond, or commodity, etc went TOO far the wrong way ... or shorted only to find the company shorted is in takeover or merger agreement ... are magnified by leverage ... The extent of the market damage depends on the amount of assets liquidated and where the assets are liqidated to cover the shortfall ... it's the ripple effect across multiple makkets that effect and affect us all.

... again, just my 2c