Pushing up tulips

Guambat has posted a couple of times lately about how the NYSE rally was mounted on the back of three very rickety stocks, Citigroup, Fannie and Freddie.

The Financial Times has spotted even more Casino madness in stocks that are bankrupt.

Lehman leads the way in ‘lottery ticket’ rally

Lehman shares peaked last week at 32 cents, having spent much of the year at less than 5 cents. When the rally in Lehman began in late August, trading volume soared above 100m shares on one day, compared with virtually no activity earlier in the year. Shares in Washington Mutual and IndyMac, two other bankrupt financial institutions, have also risen sharply in recent days.

“It is tulip mania,” said Mr Golding. “People have decided [a stock] is worth something based on nothing. The facts are quite the contrary.”

Guambat reckons you should tip toe through the tulips alone.

Lyrics | Tim Tiny - Tiptoe Through The Tulips lyrics