Apple’s $40 rise and fall: Was Goldman Sachs behind it?

“‘Goldman Sachs has engineered every major market manipulation since the Great Depression.’ So wrote Rolling Stone’s Matt Taibbi in his 2010 takedown of Goldman Sachs — the article that famously described the 143-year-old banking house as ‘a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money,'” Philip Elmer-DeWitt reports for Fortune.

“Without ever actually accusing Goldman Sachs of manipulating Apple shares, Paulo Santos, a independent analyst and trader from Portugal, makes a plausible case that the bizzarre action in Apple last week — rocketing to a record $526.29 on Wednesday morning only to plummet to as low $486.63 — can be traced to insider knowledge that Tim Cook was going to speak at a Goldman Sachs conference on Tuesday, which is when Wednesday’s run-up began,” P.E.D. reports.

Read more in the full article here.

[Thanks to MacDailyNews Reader “JES42” for the heads up.]


    1. Whoa dude … Did you have to there with the anti semetic thing… come on… Your comment will draw the ire of every liberal reader and we will have to read their chastisements

      1. … at least as much from the so-called “Christians” as we have from the Jews, in this nation. And, just because the company is named after a couple of Jewish families, this does not mean that each and every “insult” is the result of a decision or action by one of them. You want banking manipulation? Ask John McCain or one of G.W.’s brothers. There’s more than enough blame – and guilt – to go around. Except, perhaps, for the Muslims or blacks!

    2. nothing wrong with calling it like you see it. When I travel abroad, which is fairly often, I meet lots of people from various cultures. You see, cultures contain various attributes that the people who are raised in them generally share. Isrealis are by far, the most consistent assholes I meet, and are known by their unwavering belief that they are entitled to more than anyone who is not Jewish. It’s true. (but before you get your nuts in a twist, understand that it isn’t ALL Isrealis, just 98%)

  1. I’m pretty liberal and don’t understand why the Anti-Semetism card is tossed on the table anytime any one points out actions by someone who is Jewish. It’s usually behavior that is being talked about not the religion.

    1. How things are said are as important as what is said. I believe that Allen’s “golden ballsacks” comment is a prime example.

      I am not offended by Allen’s comment because it sounds like something an ill-mannered and childish teenager might utter. I imagine that many Jewish people have heard much worse, too, and have learned to just ignore that type of boorish commentary.

  2. Lets ignore the turds first post and focus on the story.

    It would be great if this could be proven and GS punished for manipulation.
    To be honest I am surprise appl was allowed to rise 100 bucks before someone took profits. Maybe the usual suspects were able to collect without having to drop the stock too much until GS got greedy.
    I’m sure we will start hearing more rumors about sustainability and growth concerns from various sources so that they can engineer a drop. It is bound to happen and the only question is what will be the new baseline. In the 450 or 500 range.

  3. I think there was manipulation here. Why would the shares go to a record high, and then free fall to below $500 for no reason what so ever. It wasn’t because of Cooks speech as everyone liked what he had to say. So something is fishy here.

    1. There are certainly market manipulators, but i think it’s funny watching Mac users try to associate any market fluctuation with some sort of conspiracy. It’s like a past time with Mac users. For decades it was something Microsoft was doing. Now it’s Google. And now that the stock has had a meteoric rise, it’s Goldman Sachs.

      I don’t like GS any more than the next person with half a brain that’s aware of their shenanigans, but sometimes the stock goes down because there are more sellers than buyers. It’s that simple.

      I also love how the article gives no evidence whatsoever that GS was behind it.

      1. I have no evidence Goldan Sachs was behind this more recent obvious manipulation of AAPL, but they’re certainly right up at the top of my list of suspects.

        We know we can’t trust any Wall Streeters, after all that has happened in the past five years.

      2. The writer down not pretend to give evidence of anything. He point out suspicious coincidences that could suggest a conspiracy. And the entire point is that the huge shift in stock was not in any way simple refutes your idea that “it’s that simple.” If it were simple it would happen every day.

        1. Unless you’re a day trader, the only thing you need to know is AAPL is higher now than it was 3 months ago, and 6 months before that and a year before that and two years before that…..

          These daily dips and spikes only matter to pros, and far less so to long term investors.

  4. Wall St. is all about manipulation. No surprise here. “Eperts do not like APL too much because of it’s lack of volatility. Try as they might with rumors and “analysts” the stock has holds firm and has not been as easy to manipulate on their whims.
    They can’t make money off Apple unless there is volatility. Goldman was most certainly responsible for this last blip.

  5. It was a joke, geez. Come on, the name is funny (like Harry Baals). I’m just a guy who doesn’t like to see Apple lose a lot of money due to some banking house, or the result of a well-to-do country going bankrupt, or a dumb analyst leading the sheep to sell their stock. Call me a turd now 😛

    1. It would be one thing to twist the name, it’s another to toss in a gratuitous religious reference in a non religious context.
      The statement was not as innocuos as you pretend. It’s the difference between describing someone as an asshole as opposed to making it a Christian asshole.

  6. If it was market manipulation, I sure hope they’ll eventually be able to control it a bit, but I doubt that very much. At least Apple’s share price is still at a decent level.

    1. It’s easy to control. You pass laws that regulate the activity, say banning short sales of shares you don’t actually hold or imposing a 24 hr hold on every stock transaction (doesn’t hurt investors, but stops traders in their tracks) or imposing heavy tax burdens on transactions held for short periods of time, like (sales price-purchase price)/(time held in minutes).

      Who would object to such regulation and protection? Start with the various GS Alums in Washington and all the guys still trying to get their first GS jobs, like Timmy the G.

  7. This GS behavior is simple verification that these dicks, and plenty more like them, threw the USA and the rest of the world with it into our ongoing economic depression.

    This IS NOT capitalism. This is PARASITISM, aka bad biznizz.

    1. It was Billyboyzipper Clinton who led the assault on the banks and forced them to lend into gettos. It is proven that this has led to the greatest financial disaster since the great depression.

    2. At President Clinton’s direction, no fewer than 10 federal agencies issued a chilling ultimatum to banks and mortgage lenders to ease credit for lower-income minorities or face investigations for lending discrimination and suffer the related adverse publicity. They also were threatened with denial of access to the all-important secondary mortgage market and stiff fines, along with other penalties.

      The threat was codified in a 20-page “Policy Statement on Discrimination in Lending” and entered into the Federal Register on April 15, 1994, by the Interagency Task Force on Fair Lending. Clinton set up the little-known body to coordinate an unprecedented crackdown on alleged bank redlining.
      The edict — completely overlooked by the Financial Crisis Inquiry Commission and the mainstream media — was signed by then-HUD Secretary Henry Cisneros, Attorney General Janet Reno, Comptroller of the Currency Eugene Ludwig and Federal Reserve Chairman Alan Greenspan, along with the heads of six other financial regulatory agencies.

      “The agencies will not tolerate lending discrimination in any form,” the document warned financial institutions.
      So this is where it all started.  In 1994.  When the government pressured lenders to qualify the unqualified.  To put people into houses they couldn’t afford.  Or else.

      1. Well said. You won’t find me defending Clinton’s licking of The Corporate Oligarchy orifice. Obama continues in that Democrat tradition. I just have to point out that the Republicans lick with far more gusto and tongue. (Yeah, I think this is a gross-out metaphor as well, but entirely apt, sad to say).

  8. I think the Apple mini flash crash had more to do with fridays options expiration than anything else.With the stock soaring the way it was whoever had sold the high strike calls was on the hook for a lot of money. They most likely put up a market order to sell a huge block of shares to stop the AAPL rally in it’s tracks. I wouldn’t be surprised if several large share holders collude to sell their shares at the same time. The stock dropped like someone flipped a switch.

  9. Hmm, let me see now! So who do we really think made the bucket load of money when those shares rocketed into the stratosphere? John Q. Public? … Yeah sure … Oh, There goes Santa Claus ….

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