S&P Helps Hedge Funds Exit Goog Position

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FuckedGoogle is closely following the addition of Google to the S&P 500, noting that contrary to what they officially state, S&P tries to time the market. Some speculate that the timing of this addition was due to Google closing in on the $285 price of their secondary public offering.

Mr FuckedGoogle also left a charming comment on Henry Blodget's blog:

Everyone knows the S&P is a market timing cabal in bed with wall street. I remember in the dot.com mania days and whenever a popular dot.com stock appeared to be plunging, suddenly the S&P would come to the rescue and add it into the index.

This happened about a dozen times.

And now, this clown comes out and admits that the entire mantra of the S&P committee is one gigantic lie and that they actually DO try to time stocks?

Henry, this is about as big a gaffe as when you admitted on the record that companies you were touting to the public were actually "pieces of shit"

He also references this article about how bad S&P is at timing additions to their index, while another astute reader points to another story which shows how truly shady the stock market is:

Aside from the Consumer Sentiment survey, the University of Michigan is involved with a number of other consumer surveys - the second best known is the University of Michigan's Consumer Satisfaction Index. It was 'disclosed' earlier this year that the Director of this University of Michigan survey, Professor Claes Fornell, a well-known and distinguished professor at the University of Michigan, had been front running stock trades prior to the service being released. In a statement, the University admitted that Professor Claes Fornell has been 'purchasing stocks two weeks in advance of the reports being released' (this is better known as 'front running' a highly unethical and oftentimes illegal action, and is similar in nature to the current mutual funds scandal in the news now). It was reported that Fornell had been doing this for 3 years.

We also found out that the University of Michigan has been selling Mr. Fornell's data to investment banks, analysts, and brokerage firms for up to $30,000 a year. The brokerage firms and banks receive the data two weeks prior to it being released to the investing public (and the media). (This practice of selling data to investment banks and other subscribers is carried over to the better-known Consumer Satisfaction survey as well.)

This represents an incredible conflict of interest with equal significance to the front running charge. So essentially, the reports are issued to the media, who then releases them to the public, with the spin that this is 'breaking news' or hot off the presses. This is clearly not the case and proves another example of how the consumer and the individual investor are once again getting the short end of the stick.