This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Five Dumbest Things on Wall Street This Week

So let's recap, shall we? A TV Azteca company refuses to pay a debt. Then that debt is acquired by TV Azteca's chairman. Then -- lo and behold! -- all of a sudden TV Azteca falls over itself paying this debt to TV Azteca's chairman.

Even Dumber than this whole scenario is Salinas' reaction to the unfolding events. After first denying any connection to Codisco, he eventually admitted "indirect" ownership. And on Tuesday he defended the deals that he previously hid: "The transactions discussed in the SEC press release benefited Unefon, TV Azteca and their shareholders, and I stand behind them," a press release quoted him as saying.

And if indeed patriotism is the last refuge of a scoundrel, Salinas got extremely patriotic Tuesday. "It's absurd for the SEC to use a Mexican company and Mexican citizens to try to impose U.S. regulations in an extraterritorial manner, unilaterally ignoring international laws and the Mexican legal framework," said Salinas, wrapping himself comfortably in the local flag. "It is these irresponsible and arbitrary SEC actions, not the Unefon debt transactions, which are adversely affecting both minority and majority shareholders."

Hmmm. Insult the SEC if you will, but we were always under the impression that if you wanted to raise money in the U.S. markets, you had to play by U.S. rules. And we marvel at the utter nuttiness of the idea that it isn't Salinas' self-dealing, but the SEC's reaction to it, which has hurt minority shareholders. If Salinas believes that related-party deals with financial vehicles controlled by a senior executive is a great idea, we'd like to introduce him to a company named Enron.

4. Do You Feel Lucky, Punk?

Delta Air Lines (DAL - Get Report) revealed a fascinating new business strategy this week: mutually assured destruction.

The air carrier -- which, like most of the other carriers that haven't filed for bankruptcy yet, is perilously close to Chapter 11 -- announced a radical price-cutting strategy Wednesday. Delta is cutting its most expensive fares by up to 50%, and it's eliminating various restrictions on ticket purchases, such as the traditional Saturday night stay-over required to land a cheap fare.
3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DAL $41.17 -1.40%
KKD $16.66 -0.95%
TZA $43.01 0.77%
MSO $0.00 0.00%
AAPL $92.85 -0.42%


Chart of I:DJI
DOW 17,612.02 -48.69 -0.28%
S&P 500 2,040.59 -10.04 -0.49%
NASDAQ 4,687.4980 -29.5960 -0.63%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs