The Art Of The Con - JP Morgan Manipulates Earnings To Report Record Profits

Right on time.  While every Tom, Dick and Harry in the financial bubble are bullish again, we wrote five months ago that we were again bearish on Wall Street banks because they were starting to manipulate their results again to boost earnings.   (For new readers we were completely out of these companies, including moving my family’s deposits out of these firms, within a few percentage points of their peak stock price before the 2008 collapse while endless carnival barkers kept coming on Tout TV, CNBC, and telling us to buy more of their gruel.)   It should be no surprise that JP Morgan is falling substantially on its supposedly great earnings.

If anyone on Wall Street could actually read an income statement or quarterly financial results or do a balance sheet analysis, they would know this.   But the work of Benjamin Graham isn’t taught anymore.   Value is a worthless term with no meaning.  Even to most Wall Streeters who consider themselves value investors, they have no idea what they are doing. 

What is taught today are completely irrelevant and ridiculous diversification models, dollar cost averaging, sales skills, ridiculous Monte Carlo simulations, momentum modeling and other completely useless bullshit to an industry generally comprised of completely nonthinking Marching Morons populated with ridiculously underqualified MBAs from Harvard and other Ivy League schools.    (Soon to be panhandlers as we have written on here for years.) 

We didn’t lose a nickel in this crisis and every CEO on Wall Street had to be bailed out to the tune of trillions of dollars.  This isn’t rocket science.  It’s fundamentally common sense.  And most households in the US, which by the way are in shambles because of these satanic thugs, could do a better job than Immelt of GE and Dimon of JP Morgan running these firms.  Because most people would simply say these companies are too complicated for me to run.  And these incompetent buffoons actually convince themselves they can manage risk in companies that are unmanageable and well too big.  Some day I’ll show you some research that shows the optimum company size should be limited to 1,000 employees.  Real work.  Based on the real world.  Not the mergers vertical of Goldman Sachs pumping ever larger humpty dumpty firms run by ever more incompetent bureaucrats. 

JP Morgan’s earnings manipulation is the same con game practiced by President Obama’s Council of Economic Advisors stooges, GE’s Immelt and countless other companies.   The quality of earnings in the U.S. is N-O-T-H-I-N-G-T-O-N like it was fifty years ago.  As we have said countless times in the last six years, this market is hundreds of percentage points more overvalued than the market was in 1929 when the market fell 90%.  This is all part of the greatest financial bubble in history.

Our  downside target remains 200-450 on the S&P 500. 

Link here.