Archive - Jul 6, 2014 - Story

"The system we have now is one in which the Fed decides, through a Politburo of planners sitting in Washington, how much liquidity is necessary, what the interest rate should be, what the unemployment rate should be, and what economic growth should be. There is no honest pricing left at all anywhere in the world because central banks everywhere manipulate and rig the price of all financial assets. We can’t even analyze the economy in the traditional sense anymore because so much of it depends not on market forces, but on the whims of people at the Fed."

The reputation of bearish-biased research boutiques is set to soar following the latest fiasco involving Spanish mid-cap tech company Let's Gowex (GOW) which a week ago was the subject of a research report by Gotham City Research and its Twitter frontliner, @LongShortTrader. In the report, Gotham predicted that "Gowex shares are worth €0.00 per share." Its conclusion: "the shares will be suspended, just as Pescanova’s shares were suspended." Needless to say at the time Gowex vehemently denied the report saying all its allegations were false. Gotham was right and hours ago the CEO admitted the company which as recently as a week ago had a $2 billion market cap was nothing but a complete fraud.