Tell Me Sweet Little Lies

Earnings season is in full swing once again. “Figures don’t lie, but liars do figure.” Afterall, the banks are allowed to use mark-to-unicorn. Why shouldn’t other companies have similar accounting flexibility? Call it creative accounting if you wish, but it’s just the latest version of fantasy land  . I suppose once this credit-fueled bubble finally pops, the comparison will suddenly be made against GAAP accounting once again. Isn’t it fun to alter the present and history to fit your whim?

Monday, stocks in Asia fell 0.3%. European markets remained closed for the Easter holiday. In the U.S., stocks rose 0.25 on low volume. Tuesday, in Asia stocks were unchanged, but in Europe they rose 1.3% and in the U.S. 0.4% on low volume. The VXO declined further to end at 12.35.

Wednesday, stocks in Asia rose slightly, but in Europe they were off 0.6%, and in the U.S. they fell slightly on low volume. Surprisingly, the VXO rose over 6% to close at 13.13 and precious metals miners rose 2%. Thursday, stocks fell in Asia 0.3% despite what was considered positive earnings news from Apple and turkey-stock Facebook. In Europe, stocks rose 0.3%. In the U.S. they were nearly unchanged on low volume.

Friday, stock prices fell slightly in Asia, 0.8% in Europe, and 0.7% in the U.S. on low volume. The VXO shot up over 8% to close at 13.89. Overall, the week showed little net change.

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