Oh boy oh boy, now we've got a rally

OK, boys and girls, it seems that the Dow is up over 500 points in just two days, and the over-paid talking heads on Bloomberg and CNBC are just gushing while extolling the performance of corporate America doing their magic by beating the estimates of Wall Street's analysts.

Golly gee, but did I miss something or what?

Wells Fargo started this bash by beating estimates (meaning it made more than the lowered estimates of the Street's crowd of touts) but it did it by using a bit of financial engineering that was well hidden in the footnotes of the report.

It seems that Wells decided to change it's internal rules so that non-performing loans would now not be reported as non-performing unless they had no payments made for the last 180 days. (Previously this was 120 days.)

Nice trick Wells. Suddenly all of those loans that are on the books vanished for another quarter. Even better, all the collections department now has to do is get the hapless borrower to pay any amount, and presto whamo, the loan moves off the non-performing list for half a year.

Of course, Bloomberg refused to bring back Oppenheimer analyst Meredith Whitman, who blasted Wells as one of the most secretive (re their financial reporting) prior to the earnings announcement, and nary a word was uttered by the bubble-headed Bloomberg cheerleaders regarding this bit of accounting magic.

Voila, Wells stock soars as the short sellers get squeezed, and the market rally begins.

Golly gee Batman, this is better than my own personal bat boomerang.

Enjoy the party folks, I suggest you unload your stocks into this rally while the booze is flowing.

The Best Money Guy