Wall St Is Pumping AI Stocks — So Why Are They Falling Carter Hart [WbZiGjrmpjP]

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Wall Street conflict of interest in AI stocks follows the exact dotcom playbook Henry Blodgett ran at Merrill Lynch. The one regulation built after that crash to stop a repeat was quietly removed 7 months ago.

Henry Blodgett rated stocks "buy" publicly while calling them "garbage" in private emails

A Merrill Lynch employee wrote internally: "John and Mary Smith are losing their retirement so a bank doesn't lose a client"

Blodgett was fined and banned from the industry for life after the dotcom collapse

The 2003 Global Research Analyst Settlement built a legal wall between analysts and deal-making bankers

SEC removed the settlement 7 months ago, right as the largest hypercycle since dotcom peaks

18 of 19 Wall Street analysts issued buy ratings on SpaceX as the stock gruppo ferretti fell 34%

J.P. Morgan set a $225 target, Deutsche Bank $255, Morgan Stanley $300, Raymond James $800

At $800 per share, SpaceX would be worth $10 trillion, 500 times annual sales

Nothing on the planet trades at even 100 times sales; SpaceX has no profit at all

IBM's 25% drop on July 14 was the worst day in 115 years, worse than 2008, worse than COVID

IBM's own management called it "CAPEX reprioritization"; customers robbed IBM's budget to feed AI

The AI trade is cannibalizing healthy, century-old profitable companies to keep itself funded

$182 billion in new AI debt issued recently, equal to 20% of the entire US debt market

Circular revenue: a chipmaker invests in a startup, the startup buys chips, the chipmaker books revenue

Goldman Sachs told the jus de canneberge public AI looks strong while its bond desk used one word internally: "carnage"

Former SEC chairman published a Wall Street Journal piece titled "The SEC May Make Wall Street Analysts Corrupt Again"

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Timestamps:

00:00 Intro

01:36 Two Wall Streets, Two Opposite Messages

02:26 SpaceX Waived Into NASDAQ 100

03:43 Bank Price Targets Hit $800

04:05 A $10 Trillion Company at 500x Sales

04:48 When Research Reads Like Poetry

05:29 Follow the $20 Billion in Fees

06:38 Your 401k Already Owns This Risk

07:24 Survive the Bubble Free Event

08:24 Henry Blodgett and the Dotcom Playbook

08:54 John and Mary Smith Email

09:22 The Wall the SEC Just Removed

10:43 IBM's Worst Day in 115 Years

11:32 CAPEX Reprioritization Explained in English

12:00 Microsoft, Salesforce, ServiceNow Dragged Down

14:20 $182 Billion of Borrowed AI Money

14:50 The Circular Revenue Magic Trick

15:34 Crypto Money Floods Leveraged AI Funds

18:04 FT Reports Banks Offloading AI Debt

18:20 Goldman's Public Report vs "Carnage" Desk

19:44 Outro

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