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Why Bear Stearns And Every Other Brokerage Are Nothing More Than Scummy Peddlers

Posted by timothysykes on Sat 15th of Mar, 2008 08:48:05 PM
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Normally I shy away from writing about all the “established” stocks out there, companies like Bear Stearns (NYSE: BSC), especially when they’re covered by the WWF of financial media—CNBC (c’mon guys have me back on, I’ve been working on my eyebrow trick!!!) but this Saturday article speculating BSC will get taken over at $15 or lower or facing bankruptcy really hits home. Not because I have stock—I’d never—or because I know a bunch of people who work there—I know just a few (sorry, my heart truly goes out to you!!)…

No, I bring this tragedy up for three reasons—1) considering the stock tanked from $90 to $30 in less than a month, a $15 takeover will kill those who “bought the dip” on Friday, aka why you should NEVER buy falling knife chart patterns, especially financial / mortgage plays, 2) no matter the final buyout price / bankruptcy, it shows how quickly these “rock solid institutions” can come crashing down, aka they are nothing more than scummy peddlers

peddlers Why Bear Stearns And Every Other Brokerage Are Nothing More Than Scummy Peddlers

and 3) since stockholders are the last to get paid, you gotta realize “investing in a company” is a figment of your imagination, you’re doing nothing more than getting a receipt saying you’ve spent a ton of money on something that isn’t real, aka why it’s so dangerous to “invest” and you should instead think of stocks as chips on a table in Vegas.

Like boiler rooms, maybe they did something illegal, maybe not, but that’s not why I make the comparison—no, it’s because ALL these firms Goldman Sachs, Merrill Lynch, J.T Marlin, the lot of ‘em, they’re all just peddlers. Peddling deals, stocks, bonds, whatever. Some environments are better for peddling than others, some companies are better at peddling than others, some of the crap they peddle is better than others—no matter the variables, they’re all playing the same game. Once investors and other peddlers lose faith in a peddler’s ability to do their job, that being to peddle—especially when highly leveraged, as nearly all peddlers like to do—the jig is up.

No matter how well produced their commercials are, how glossy their marketing materials well trained, experienced or brain washed their peddler employees are—none should be trusted. BSC started back in 1923. 1923 for God’s sake! And now it all comes crashing down in a few weeks.

PS I’m glad their King Peddler was caught lying on national TV (c’mon prison sentence, big prison sentence, get your prison sentence here!!)—this didn’t happen in 24 hours. They dug themselves this hole over many years. Read this damn book and you’ll see how leverage destroys. Leverage is the enemy. Marketing leverage is even worse, now that’s the true enemy.

Now this is coming from somebody who has no corporate experience whatsoever, few corporate contacts, blah blah blah, I’m just a cynical guy who’s learned—the hard way—not to trust anybody or any firm whatsoever. See my cool new video bio, straight from my similarly no BS PennyStocking DVD:

Whether or not you agree with this soulless / compassionless /accurate (welcome to Wall Street!) description here, if you learn to think this way, how can you ever get burnt by a scummy peddler?

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  • Tony Ellis
    Guess how I'm spending my Saturday night?
  • Another lesson from this is that even sucessful investors can totally cock things up. Just look at Joseph Lewis, the second-largest shareholder of Bear Stearns. He was the world's 369th-richest person, according to Forbes magazine's 2007 survey (not any more), with a a fortune estimated at $US2.5 billion at that time. He accumulated a 9.4% stake last yearwhen the stock declined 47%, at an average of about $US107 apiece for his 11 million shares. Friday's drop means the stock is now trading around 72% below his cost, meaning he's lost around 0.85 billion dollars in less than twelve months.

    It also shows the benefit of diversification - investing 47% of your net worth in one distressed stock was never a smart move. Perhaps at 71 years old he's too old to handle his own financial affairs.

    Ref: http://business.smh.com.au/billionaire-mauled/2...
  • Mike
  • JJ
    funny, I thought NV was the only state where prositution was still legal. I think Spitzer needs another term to change all that for NY. surely heff and flint would show some lobby support. as for Bear Sterns this could be the beginning. birds of a feather flock together. we'll have to wait and see what other SOB CEO's are in on all this. it's not over yet...i say take them all to the cleaners.
  • OrdinaryAmerican
    Right you are! It's just gambling.
  • Hugh E. Rexson
    Tim, your site is about cutting the BS, so I will do so here and for the benefit of your readers. This may sound like gloom and doom but people need to be prepared. You won't see this on CNBC, altough Jim Rogers nailing Lips was about as close as you'll get.

    We are probably 1/4 of the way into the single greatest financial disaster any of us will see in our lifetimes. Think about the Dow back down to 8000 type of disaster. Bear Stearn is actually bigger than just a simple cash liquidity issue with Bear Stearns (BS for short, how apropos). This is US Govt backed effort to prevent a global meltdown of the global financial system. BS is a primary dealer in US government Bonds. If BS completely went kaput, then the global financial market would lose complete confidence (and for good reason as there are $500 trillion dollars in derivates ready to meltdown) in banks that deal with US Bonds. Think about this, the govt keeps dropping the prime rates to increase liquidity, yet no one wants to take on additional risk and have been tightening their lending standards. So, the government keeps printing money and inflation goes through the roof, and the dollar declines further against most other currencies. Bond Rating agencies get propped up, so that the toxic shit on the books doesn't have to written down further if they drop to AA status. Govt creates a 200bn bank out of thin air, when the Fed is actually negative on money it could lend out. Why? To create a 28 day float to push out reporting of all this shit to delay further immediate writedowns, which would then create compounding writedowns because of the ridiculous leverage used, and thus simply exascerbating the problem in a few months. Because the banks sure as hell ain't lending that money back out. But get ready for another jump in the markets on Tues when the Fed drops another .50 to .75 of prime. Or maybe the markets will finally wise up to the fact that we are getting fucked by Ben? Nah, of course not. So get ready with some Ultrashort ETF ideas on the jump of the market, and you might pull in a good 12-15% in 2-3 days

    I like your site, I've learned quite a bit on the microcrapper daytrading side, and I will cut through the BS too for long term folks. Gold is going to at least 1650, probably higher, while the dollar keeps dropping. Gold will be turbluent but that is where it is going, so you had better have a strong stomach. So the smart money long term is in gold and stable foreign currencies such as swiss francs or aussies, and probably shorting the entire market for a loooong while. PRPFX was a good rec by you, by the way.

    PS: I want my free DVD's, please check my post on that thread. Deal?

    PPS: Just for laughs... http://www.break.com/index/stock-future-trader-...
  • Michael
    check this video out

    it's funny as hell

    http://www.youtube.com/watch?v=3YbjQSQwIcY
  • Farsighted
    Ashley is just 22; she's a girl who had some men and money problems; I really doubt she's a typical hooker; seems like a nice girl who was a little naughty...

    I bet if you did a survey of girls her age, and ask 'em if they would do a hookup for $4k with the new york governor you would surprised to see how many would do it....

    glad to see she can cash out; most likely no one she knew had any idea what she was doing...
  • timsykes
    haha nah the crane crash isn't that interesting, kinda like a microcrap up only 20%, u gotta learn to think big!

    PS Don't hate the game, learn to play it, it's fun and more importantly, EASY to profit off hype!
  • JJ
    nice...i forgot to mention...Spitzer brings a whole new level the penny stocking term, pump and dump! ouch and it's true that BS (Bear Sterns) handles trillions of $$'s for the Gov't so of course they have their own incentive to see it through. you know times are tough when gov't intervention is needed to keep businss honest. talk about calling the kettle black!
  • timsykes
    Like I've posted several times, it doesn't matter if the the AA Dupre I was talking to was real or fake...just like it doesn't matter if a company's news is real or fake--you gotta buy into the volume/interest and sell short when that interest fades. this is why it's a perfect example of my trading strategy

    and if u think I clicked 17k times on ET, LOL, well, I can multiply all the stupid things I've ever said and done times 1,000 and it still wouldn't even come close to .000000001 to how stupid u r. let me guess, you're a fat pimple faced 19 year old virgin who's great at guitar hero and nothing else. or maybe you're 40. it doesn't matter, MY BUSINESS MODEL WORKS ONLY IF I'M BRUTALLY HONEST YOU FREAKEN MORON...yet another guy who exemplifies the kind of idiocy in finance, thanks for helping me prove my point!
  • eric
    You go Tim!
  • Reality Bytes
    "MY BUSINESS MODEL WORKS ONLY IF I
  • timsykes
    exactly how have i lost $ on trading penny stocks? poor poor lil ole me only has 600k left to his name. how will i live? LOL, do some DD before u start typing again.

    PS publishing is niiiiice, don't worry, specifically for inbreds like u, i'm gonna start posting ALL my monthly earnings
  • Zykosis
    [img]http://i174.photobucket.com/albums/w99/Diotte995/Success.jpg[/img]
  • timsykes
    Hey inbred, what didn't u understand about me saying it doesn't matter, hype is hype. Posting, promoting and leaving that convo up there teaches everyone how to profit from hype. You mistakenly believe I'm a journalist when I'm really more of a teacher--I teach how to profit from hype. And you're just helping me prove my point, gratzie!
  • Reality Bytes
    Can you start posting all your monthly earnings? Are you going to be on WSW anymore?
  • And I thought I was so savvy by buying on the dip Friday. Thought I was getting in low! Ugh!

    Capitulation may have begun because I'm considering pulling it all out. Might as well play poker with it!
  • Hugh E. Rexson
    911 - You should in fact consider pulling it all out, although you should do your own due diligence for whatever makes you comfy. You think this is low? We haven't seen anywhere near low yet. People making money in this market will probably be shorting on the spikes, selling stupid buy holds on the spikes, investing in francs and aussies like the Timster says, and buying oil etfs (not oil stocks) and gold (again it will fluctuate as margin calls keep rolling in) but will ultimately go to 1650 and beyond. Oh, and shorting microcraptastic shit stocks. This market is gonna shit on a lot of otherwise smart people, that think they are seeing a bottom. They're not.

    And Tim, I live about 20 blocks from you. Walked near the crane accident today. Half a freaking penthouse apartment was crushed. Gotta suck for the owner, maybe it was a BS exec. lol
  • Noneya Bizness
    I lost any respect for the book you wrote after seeing your website....what a load of SHIT!!!!!!!

    YOU SUCK. You aren't an investment guru, you are a frick'in retard Cramer wannabe. Dip shit.
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Who Is Timothy Sykes And Why Should I Care?

See Tim's full bio HERE. Tim turned a few thousand dollars into a few million by taking small gains time after time on hundreds of volatile penny stocks, discovering that his trading strategy, while consistently successful, works best for those with smaller accounts.

Determined to teach others this PennyStocking trading strategy (learn more HERE), he went back to his original $12,415 roots (already $58,000+ even though the stock market has crashed) to show everyone how to turn thousands into millions, even while having a life (somewhat) and making plenty of mistakes. Currently he is the #1 ranked trader out of 25,000+ on Covestor)

How Can I Consistently Make Money In The Stock Market?

Hard work, Determination and Know How.

Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.

Determination to seek those probable profits out and know how in order to actually profit from them.

Long story short, wait for stocks that are extremely volatile - for whatever reason - and then aim to take small profits (between 10 and 50% within a few hours, days or weeks) here and there, either from betting on higher or lower prices (yes, you can make $ betting on lower prices, it's called Shortstocking (learn more HERE).

Why Penny Stocks?

As Tim explains in several ALL-NEW instructional DVDs (see them HERE) and in over 2000+ blog posts, penny stocks are the most hyped and corrupt niche in the entire investment world. These two qualities make them the easiest to profit from (legally) because the vast majority of people who play penny stocks are suckers and all-around ignorant people. If you have any intelligence whatsoever, you have a clear advantage and it's like playing basketball against mental midgets.

Where Do You Find Stocks To Trade?

This is the #1 FAQ (see more HERE) and it is answered in THIS instructional DVD.

Of course, that's just a brief introduction - to receive a full education, there is Tim's book An American Hedge Fund which is the story of his remarkable rise and lessons learned.

To truly increase your odds at profit, Tim has designed an entire set of detailed instructional DVDs, covering all the variables that amount to over 24 hours of instruction (see them all HERE)!

TIM Trades

View All
Date Stock Buy Sell Net
Nov 19 AENY $2.80 $3.02 $1148
Nov 18 NLST $4.16 $4.40 $947
Nov 18 IMGG $1.42 $1.64 $2094
Nov 17 NLST $5.04 $5.59 $2195
Nov 13 VRMLQ $21.50 $22.97 $2901
Nov 11 EONC $2.61 $2.80 $687
Nov 10 EONC $2.74 $3.36 $9784
Nov 6 QXM $4.31 $4.80 $1936
Nov 4 COT $8.66 $8.88 $642
Nov 4 QXM $4.61 $4.89 $822
Oct 30 DDRX $25.70 $26.53 $812
Oct 29 CTDC $4.00 $4.42 $781
Oct 26 AWSL $3.24 $4.10 $2516
Oct 23 RODM $5.27 $5.23 $301
Oct 22 AMLM $2.69 $2.97 $820
Oct 22 USEG $6.12 $6.09 $85
Oct 20 CBOU $8.93 $9.06 $243
Oct 16 VRMLQ $16.79 $18.65 $2773
Oct 13 YONG $11.05 $11.66 $1202
Oct 13 NPHC $0.59 $0.71 $583
Oct 12 IMGG $0.60 $0.70 $682
Oct 9 ZAGG $5.50 $6.10 $2380
Oct 7 GVBP $0.03 $0.27 $702
Oct 1 NPHC $0.70 $0.85 $1482

Total: $98,094 (681%)