Tuesday, April 07, 2009

Treasury keeps us guessing...

Boy, just when you thought you only had to deal with one rule change per day - expect the uptick rule to come back tomorrow - the US Treasury announced tonight that they will be postponing the results of the stress test so as to not influence the markets in the midst of earnings.

The banks are going to show surprisingly strong results thanks to the changes in accounting rules announced last week (I'd imagine some auditors are logging some fat billable hours swinging Citi from a multibillion loss to a profit thanks to a sprinkle of FASB dust). The Treasury seems to be hoping that they can create another false rally before letting the world know just how bad things are at the banks.

Unfortunately, I think real investors (not traders) are starting to tire of all the games.

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