One of the various reasons analysts working for brokerage houses like Bear Stearns, Merrill Lynch, Prudential , etc downgrade stocks especially at its lowest prices is to buy themselves time to raise capital to build up inventories of those ultra cheap stocks that is too big to fail like GM and Ford, you know? You, shareholders , got to understand that brokers doesnt always find buyers or sellers for your stocks, they do buy or sell from/to you from their own as well. Brokers have shelves where they keep stocks on for quick sales to you. It is a like a love triangle, you know? Brokers can find shares from someone, themselves or you... It doesnt matter ... So it is a hell of a confilct when analysts downgrade or upgrade stocks when analysts and their respective brokerage houses hold similar stocks or not. It is a dirty trick of Wall Street. I dont think SEC will do anything about it. Just dont listen to analysts and believe them every time. Sure, they can be honestly right sometimes. But not everytime... They do lie..... Use your guts or judgement yourself...