I couldn't quite believe this from the same CBS that did the two 60 Minutes segments on Y2K:

This am, on CBS Morning News, in the Marketwatch Segment, the news commentaor recommended two overseas mutual funds as best picks for 2000.

One was a fund investing exclusively in S. Korea. I suppose they chose to ignore or hope their veiwers have no understanding of:

1. Effect of China devaluation on Korean economy. 2. Effect of recall on Japanese loans on Korea. 3. Alledged finacial problems at Daewoo - largest Korean conglomerate. 4. Effect of milataristic threats by N. Korea. 5. Effect of Y2K on Korean exports. 6. Etc, etc, etc.

How could anyone with a little awareness invest in a Korean mutual fund. This smells. Maybe its part of a last ditch plan to prop up the Korean economy for a few more weeks.

-- Bill P (porterwn@one.net), July 24, 1999

Answers

You know its showbiz, Bill.

-- dave (wootendave@hotmail.com), July 24, 1999.

They're not trying to prop up Korean economy. Analysts are attempting to pad their own pockets. Most analysts are associated with firms holding issues that their firms are promoting. These days I view them as snake oil salesmen.

Firms buy an inventory of stocks when price is low. They then sell to the public at a higher price and pocket the difference.

Sometimes they (or their cronies) will establish a "short" position on a stock that's doing well. Then they issue a "downgrade". As stock falls, they close their position and pocket the profit. When you short a stock, your making money as it falls lower.

When stock's low enough, they purchase again and add to their inventory. Later they issue upgrades via print newswires. Or, go on TV and "pump" the stocks their holding.

They're salesmen. You buy the stock at a higher price than they paid, and they pocket the difference.

Plus they get commission - whether you make money or lose money.

I've been really disgusted with some of what I've seen in the market these days.

-- Cheryl (Transplant@Oregon.com), July 24, 1999.

Here's why I think they're snake oil salesmen ...

1987

<On October 19, 1987 the stock market plunged 508 points, or 22 percent of the total market value. It was the worst crash, since 1927 which signaled the Great Depression. What brought about this crash, why such a drop in such a little time?> ...

<Many of the SPECIALISTS, whose job it is to negotiate the trades between sellers and buyers, were going out of business, because the rules state that they must purchase stocks that cannot be sold. In the end, the market plunged, and after the closing bell rang in the NYSE, there was silence between the brokers. People were speechless, many broke. .> http://tqd.advanced.org/3088/stockmarket/crashes.html

Following from: http://www.greenspun.com/bboard/q-and-a-fetch-msg.tcl?msg_id=00187J

" I was watching CNBC today and was not paying too much attention until I heard one of the talking heads say that a move is afoot to have the NYSE Specialists go public with new IPO's. This will allow the Specalists to control a potentially volitable market since they will have more liquidity (money) as a result of the public offering. They said this could happen as early as September of this year.

This really got my attention as it is an unprecented step. For those of you who don't know, one of the roles of a specialist is to act as a principle as a buyer or seller of stocks to ensure an orderly market. Are they taking this step to ward off potential Y2K problems? Sure looks that way to me. -- Watcher6 (anon@anon.com), July 23, 1999

Along the same lines, Goldman Sachs just went public too. A large, old private company going public isn't really too interesting.

What IS interesting, however, is that Goldman Sachs was once public before!

They went public in 1929!

When questioned by Congress later in 1934 (or thereabouts), the president of the again private Goldman Sachs remarked that they sold shares in excess of $100 per share. After the crash, they bought them back at less then $2 per share.

Curious, eh?

-- Jollyprez (jolly@prez.com), July 23, 1999.

=====================================================

NYSE To Go Public

Beating his rival Frank Zarb to the punch, New York Stock Exchange chief Richard Grasso said yesterday he expects to take the Big Board public by Thanksgiving.

The NYSE chairman, who just recently said he had no plans to go public, said he wants the exchange to become a for-profit company listed on its own exchange.

"I fully expect that you and I, at Thanksgiving, will be looking at the trading of a New York Stock Exchange stock," Grasso told Bloomberg ... more ... >> http://209.10.98.162/business/11484.htm

Hmmm ... Now the pros even want to dump their 'seats' on the public? John Hunt - Silicon Investor - Gold Moniter Thread

-- Cheryl (Transplant@Oregon.com), July 24, 1999.

You know, but when I heard about the NYSE going public yesterday--by Thanksgiving--I simply thought, "Too late." The market will have crashed bigtime by then.

-- Mara Wayne (MaraWAyne@aol.com), July 24, 1999.

Mara,

I thought the EXACT same thing - lol.

-- Cheryl (Transplant@Oregon.com), July 24, 1999.

If they want to do an IPO in November, then they will keep things going until November. If these plans get really serious, then don't look for a serious correction until after the NYSE IPO. These guys are experts in market manipulation. You can't beat them.

-- dave (wootendave@hotmail.com), July 25, 1999.