RiskAverseAlert

The Treasury's Pump and Dump Scheme for Bank Stocks

"After a cursory examination of the largest banks, they all pass and are told to raise additional capital just to be on the safe side. Investors start to buy the bank stocks en masse causing many bank stock shares to double and triple in price. Over $200 billion in new capital is obtained from investors eager to get in at depressed prices."

Following the 1929 crash, those enterprises with nothing to lose (because everything was at risk of being lost) pooled their resources to do pretty much the same thing. Whether "investors" are responsible for the effects mentioned in the above quoted paragraph is entirely debatable. However, per more recent "distribution" of bank stocks, even here it probably is a misnomer calling bank stock buyers "investors." More like saps. And their king is Cramer.