It's Been An Amazing Con Job

The whistleblower in the "China Hustle" went to Wall Street to inform the investment banks they are churning out worthless IPOs. They told him to fuck off, and that if he spread the news they would sue. Shocking...

"It's been an amazing ride", is what the CEO of Ameritrade said back in early February right before the wheels came off the bus. He was reacting to the fact that U.S. gamblers had just moved record amounts of money into the casino...

Of course then came the vertical -10% implosion. Stocks rallied back into mid-March, with the Nasdaq making a new high during the anniversary week of Y2K. 

Once again, gamblers put even MORE money into the casino. 

Meanwhile, as I discussed yesterday, the real action is in China Tech and China IPOs. The most recent China IPO was up 880% on the first day and it was 6,000+ times oversubscribed. Yes you read that right.

"I don’t care about fundamentals,” said Hei Chiu, a 34-year-old merchandiser and individual investor who says he only purchases initial public offerings. "Share prices just go up if there is strong demand," he said.

Most Kwai Chung Ltd., a provider of advertising and media services, surged as much as 880 percent in its debut this week. Retail investors ordered 6,289 times the stock originally available to them, a record subscription ratio in Hong Kong. 

The eye-popping rallies have a habit of sputtering soon after the first day. B & S has plunged 62 percent from its intraday record high, while Most Kwai Chung has tumbled 70 percent from Wednesday’s peak"

Another look at U.S. banks

Global Financials:

Here's the chart Zerohedge has been going on about, showing interbank borrowing costs. Highest since you know when...