Last week, when the banks needed to raise capital, all was good and recovery was well underway. Now they're done with that fairytale, Goldman (NYSE:GS) and Da Boyz have gone short, and officials are at liberty to tell us the bad news.
No, it cannot be coincidence that the day after BAC completes its equity offering (following an upgrade from GS), Greenspan comes out of the woodwork to say we've been had, and the banks are actually still underfunded, and Federal Reserve officials are now talking about how bad the economy is.
At the same time, analysts now reporting that China's stimulus package isn't really working, and their economy will falter, too. This is just a couple of weeks after Goldman said the opposite, and you know what happened then. I guess it would be unseemly to panic the US markets and send too much money to China—better bar the exits first, so the suckers will still be here when the next Friend of Wall Street needs to raise some capital.
How many times in one quarter are people going to let their chains be yanked this way? And why do we still have government officials aiding and abetting this blatant manipulation?
Sell in May, indeed.