Goldman At A Loss On How To Drive Market Higher... Never Fear Chairman Frank Is Here

Tyler Durden's picture

Need a quick boost to the market? Just clutch at Barney's straw.

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ptoemmes's picture

In the red says...


(comments reported after the)

close by US House Finance Services Chairman Barney Frank suggest broadening support for regulatory reform that would not mandate the separation of GE Capital.  While numerous uncertainties remain, we are



After the close, Bloomberg reported that Barney Frank indicated that GE and "manufacurers with finance businesses should be allowed to keep the units under a revision to rules that govern banking." This seems to strengthen the view that legislative support for reform requiring GECS separation as implied by the Treasury "White Paper" is declining.  We

Dixie Normous's picture

This is getting embarrassing.  Stock upgrades on reform mandates Barney ISN'T making.

Anonymous's picture

click to enlarge and make readable doesn't seem to be working

lizzy36's picture



i am looking forward to when GS upgrades S&P to infinity.

Bob Dobbs's picture

To infinity and beyond!

Anonymous's picture

GE got an upgrade from Goldman Sachs this morning. Looks like a return of favor to all those buffoons on CNBC.

No More Bubbles's picture

Are there any shorts left to squeeze?  I can't imagine this nonsense lasting much longer, but then again - we've seen this movie before......

Anonymous's picture

"When will this come to an end?"
"When I am finished"

"OK, so when will that be?"
"Right when the market fails due to lack of more suckers --err, traders."

Ben_the_Bald's picture

Help me out here.


GE Capital is a time-bomb.

GE is upgraded because it's more likely that they can retain GE Capital? Is this another way of hinting that GE Capital is getting a new bailout?

PragmaticIdealist's picture


GE Capital has been declared Too Big To Fail.

Anonymous's picture

i look forward to backstopping immelt for the next 20 years

Gilgamesh's picture


07-30 14:58: GE (GE) may need as much as USD14.7bln according to CreditSights


Whew, good thing they don't need to fund GECC.  Who knows how much higher that number would be then...

Pizza Delivery Man's picture

Shorting SPY @ 98.90

Selling calls on USO

Delivering pizza later.

Oso's picture

currency not supporting equity move.  two failed bond auctions not supporting this move.  agree with your trades.

SWRichmond's picture

"Need a quick boost to the market? Just clutch at Barney's straw."

Dammit, did you have to do that?  I threw up a little.

Anonymous's picture

Suck, blow is just an expression.

Anonymous's picture

I believe pumpers are going to inflate the market until the Q2 GDP numbers are out (i.e. tomorrow). Then they would use bad numbers as an excuse to start dumping.

D.O.D.'s picture

Bad Numbers? I think not, they will be less bad numbers from a certain perspective, which will be enough to drive the market higher tomorrow... You see at this point if the world isn't going to end, then everything must be hunky dory...

Anonymous's picture

They are massaged numbers not held to the same standards as ones that came out pre-recession.

Anonymous's picture

The GDP numbers won't be bad. And unless there is a decline in the double-digits (and it won't be) it'll be spun to be 'better than expected'.

The GDP numbers will in all likelihood be FANTASTIC and the banner headline on tomorrow will be The Recession is Over.

I don't know everything that goes into calculating GDP but the decline in imports has been greater than the decline of exports will boost the numbers, as will higher stock prices , then there was Swine Flu spending and I'm sure at this point they've even found a way for unemployment benefits to counted towards positive GDP.

Of course, the alternative scenario is that this is currently being 'priced in' so the rally on that is today and tomorrow will be flat.

Anonymous's picture

GE is one of the biggest, if not the biggest, lobbyists to Congress.

Their bribes to democrats are one of the reasons we have cap and trade.

Anonymous's picture

this is the biggest scam ever perpetrated on the american bad as the Federal Reserve

Anonymous's picture

Must read. If this is all true, how do we get this out to the real American population?

bruiserND's picture

Don't forget to include Drexel Burnham Bankster "Dr" Richard Sandor.

speculator's picture

Total scam. And yeah, Sandor is a scumbag.

Funny thing is, we could be entering a solar minimum here, just as this nonsense gets traction.

Anonymous's picture

Global warmers right now are still denying that the planet is in a cooling phase. However, I can guarantee that once they twig on to the fact that there's been a global economic slowdown, that in retrospect they'll attribute this cooling to lower CO2 emissions.

I know it's bullsh*t, but that's what they will say. Just watch. And yeah, it's 'climate change' right now (they hedge too!) but when sunspot activity picks up again and the planet is 'warming' again they'll be calling it that again...

Anonymous's picture

In case you are not aware, GE CEO Jeffery R. Immelt is on the Board of Diretors [Class B - elected by member banks to represent the public] of the Federal Reserve Bank of New York.

Anonymous's picture

Just a "Thank you" for all that propaganda that you do so well.

Anonymous's picture

Can anything hold this market back at this point? Has Wall St finally convinced people that these are the rules that everyone will live by? Either buy it or miss the boat and when we dicide to screw you, there's nothing you can do about it anyways!!!

I'm looking at the market above 9200 right now and wondering why would anyone buy this market here at these levels considering the reality out there.


I strictly day trade and never hold a overnight position! That decision was made long ago when Merryl Lynch set a $1000 price target on Amazon back in the tech bubble glory days. Never materialized...But they did settle collusion case with the other firms for a measly 1billion dollars.

ptoemmes's picture

Deleted - Wrong thread....

Dixie Normous's picture

The market needs a critical mass.  Forget job losses, forget foreclosures (where the banks aren't even contacting people who are behind), CRE? whatever.

The goal is to spread the word, beyond us and the CNBCers and into the livingrooms of the great unwashed.

When people scrape together the $350 from their unemployment checks to buy 100 shares of C, then we will be at a top.

Dr Hackenbush's picture

Moral of the story.  Even a massive head blow should not discourage one from running for congress.  Who knows you may wind up Chair of the House Bank, and be in charge of propping up the market to garner support for a major agenda.

Opium Please (blue pills a gateway drug? Bosh!).  

kote's picture

8% now.  Must have been all the green shoots in their GECC meeting.

Oh wait... all that meeting did was show that we're basically at the adverse FED case.

Hondo's picture

This is no different than the banks.  Benefiting from taxpayer monies (for which the taxpayer will reap no reward but only the employees and shareholders of GE and/or the banks).  Americans are stupid to put up with this nonsense......but those profits derived from taxpayer support will flow to GE and it's executives............

Anonymous's picture

See, I had no idea Immelt was a fan of hot beef injections. I learned something today.

Anonymous's picture

This is totally outrageous. Conspiracy theories have never really stuck to these firms, but now you don't need them. They are publicly embarassing themselves and it is going to lead to backlash.

Project Mayhem's picture

all aboard the fail whale!

bruiserND's picture

Like apples ?

  How does the stock market perform when Congress is not in session? Does it do better than average, worse, or does it make no difference at all?

The right answer is timely, of course, since Congress is scheduled to go on recess this Friday. And it isn't scheduled to reconvene until after Labor Day.

Believe it or not, the stock market performs much better than average when Congress is not in session.

That at least is the finding of an academic study several years ago by professors Michael Ferguson of the University of Cincinnati and Hugh Douglas Witte of the University of Missouri at Columbia. Specifically, they found that "about 90% of the capital gains over the life of the Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (INDU 9,071, -25.92, -0.29%) have come on days when Congress is out of session." (Click here to read their study.)

When I first read about the professors' finding of a so-called "Congressional Effect" in the stock market, I assumed that it was nothing more than a different kind of seasonal pattern in disguise. After all, Congress is not in session during holidays, and it has been well known for some time that the stock market performs at an above-average rate immediately prior to those holidays.

But it turns out that the professors checked for this possibility. And they found that these other seasonal patterns account for only some, but not all, of this Congressional Effect. So they believe that there also is a genuine relationship between the stock market and whether Congress is in session.

This actually makes a certain amount of sense, they also argue: Companies and investors face "a more uncertain tax and regulatory environment" when Congress is in session. As confirmation of this finding, the professors point out that the stock market has tended to exhibit significantly greater volatility when Congress is meeting. And volatility is a good proxy for uncertainty.

To be sure, the Congressional Effect hasn't always prevailed: Stocks have not always performed well when Congress is on recess, just as they have not always produced poor returns when Congress is meeting. In trying to assess why it hasn't always worked, the professors found that the pattern has tended to be strongest when Congress has a low approval rating in public opinion polls.

How low must Congress' approval rating be in order for the Congressional Effect to be particularly worth betting on? The professors found it to be 39%. When it is below that level, then the Congressional Effect is more pronounced than when it is above that level.

What percentage of citizens currently disapprove of the job Congress is doing? lists three polls that were conducted this past month that attempted to assess the public's opinion of the job Congress is doing, and the approval percentages in those polls ranged from 22% and 32%.

No wonder the stock market is struggling.

Maybe Will Roger got it right. The professors quote from a famous speech of his in 1930: "This country has come to feel the same when Congress is in session as we do when a baby gets hold of the hammer. It's just a question of how much damage he can do with it before we take it away from him



How 'bout them apples?,,1560%20chart,00.html?symb=YM&month=U&year=09&period=V&varminutes=5&study=&study0=&study1=&study2=&study3=&bartype=Bar&bardensity=LOW

Anonymous's picture

Tyler Durden, you're the worst thing to ever happen to Gollem's Sack and Wall St slime!

Anonymous's picture

where can I get GS research report on GE

Anonymous's picture

This is the best GS can do? A lot of hope and hand waving and no real number to back things up? You gotta be kidding.

Anonymous's picture

bawney fwank... he's our man. is there anyone working in GovCorp that is not sold out? (okay, two: paul, kucinich)