p2pvoice

Stocks Rally on Financial Writedowns: Overly Optimistic?

Why go back a year? Just last quarter, AAPL stock fell; even with "better than expected" earnings.

And mind you, it is not just write downs with banks, they also have losses for the quarter.

I am stunned with the market's steep rise yesterday and it forces me suspect a newly hatched conspiracy among the large investment banks around the world.

After LEH press release, its shares fell 5% that evening they waited to announce after the quarter end). Than at about 1:30 am, the wires flashed the UBS story and Asian markets fell. By 8:30 am everything was hunky-dory. By the end of the day, "everyone" had a logical rationale that big write downs and big losses are good for banks, especially IBs.