Poor Dude

E*Trade: Why the Strange Earnings Report?

Come on, guys. This is exactly the same thing that has happened with CitiGroup and Bank of America and many other financial firms.

There was a concerted effort to drive all these companies into the ground and sweep up the pieces for nothing, but it didn't work in all cases. It was pretty successful with Bear Stearns, Lehman, Merrill Lynch, Indy Mac, Wachovia, Washington Mutual, and others. But our government was finally forced to intervene --- to save our system, our government, and our very country. That's the level the game was played to, and our government finally blinked in order to save itself. Much to the dismay of those desiring to pick up even MORE great companies for nothing. (Thinking maybe Goldman Sachs and mostly JP Morgan here.)

But alas, too many small-time investors never gave up the faith and continued to buy these great companies all the way into the dirt. And not being content that no-name investors should be able to realize thousand-percent returns on their investment after the situation was stabilized, those who manipulate the markets have now fallen back to their next-best method of controlling who gets to make how much money --- shareholder dilution.

Everybody is in on it. Our government (using taxpayer money), the big-money guys on Wall Street, and corporate management of the remaining companies (oft under duress or threat of removal). If E*Trade is to go up 1,000 percent from here, then it will only be allowed to do so after the "right" people own most of the stock.

So the company books and reports losses which don't exist, and our government "insists" they raise new capital (IMMEDIATELY!) when it's not needed (while refusing to allow them to participate in TARP although all the right companies who made the right contributions to the right politicians get TARP money), and then somebody swoops in to "save the day" and take a huge chunk of the company from its current owners for pennies on the dollar through dilution.

They wanted it all, but they'll settle for 80 or 90 percent if our government makes them.

But look at the bright side. We've found the true bottom. And while they're going to make 1,000 percent on the way up, those who endured the pain to this point will get to go along for the ride (with their seriously-diluted stake, of course!).

:)

What's that? Paranoid? Who? Me?

;)