Posted on 03/16/2011 11:23:49 AM PDT by xtinct
I’m a big fan of giving the benefit of the doubt to issues I don’t agree with. My thinking is always that if there’s a ban, a loophole or a hurdle, it was placed there not to piss anybody off, but because of some honest, albeit sometimes wrong-headed, motivation to do the right thing. When I discover, however, that the driving force is malevolent, illegal, or just plain immoral, all bets are off.
With that in mind, I’ve been trying to analyze the motivations of the people who are going after one business model — for-profit colleges — in so many different ways that it makes my head spin: trying to add another layer of cumbersome regulations through the Department of Education, holding hearings before Congress, running ads on cable, and even putting out a fraudulent Government Accountability Office report. Not putting them out of business directly but, drip by drip, drowning them into bankruptcy.
(Excerpt) Read more at ht.ly ...
bump
Hmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm target Hillsdale?
You are way behind the curve. The SEC is actually helping to kill off the small boutique brokerage firms in this nation with over-regulation. This has been going on for 6 years at this pooint and is mostly being done by FINRA, the brokerage industry’s “self-regulatory organization.” It kicked into high gear after the merger of the NYSE regulators with the NASD in 2007. If you don’t believe me take at look at FINRA’s total membership count in July 2007 through today and further look at the number of new firms “admitted to membership” in that time period. The numbers are dismal.
Your government wants us all working for a huge corporation, a government agency, or drawing welfare. We are easier to keep quiet in our pens under that vision.
The U. S. Dept. of Education is not needed and should be abolished, in addition to which the federal government has ZERO constitutional authority for meddling in general elementary/secondary education.
The SEC is one of the most useless agencies in D.C. The incompetence, backwardness, and indifference are at times staggering.
The people at the SEC are too busy looking at porn...
/sarc
Megyn discussed today that the EDU is MANDATING that teachers “monitor” the students at home through the internet. Looking for “words” deemed unacceptable.
The EDU is encouraging STALKING of Children.
END THE EDU NOW!
Eisman has never been accused of illegal stock price manipulation. Selling a stock short is not illegal, nor is it stock price manipulation.
This article misses the point and looks as if it were written for an industry apologist, not a disinterested observer.
The fact is, many for profit colleges (most prominently Caplin), exist solely to defraud hapless students and taxpayers through scamming the student loan system. Their degrees are virtually worthless. Very few of their graduates and drop outs find decent employment. The companies spend far more of their revenues prospecting for more suckers than educating the ones they’ve already found. A huge percentage of former students default on federally guaranteed loans. The gullible student and the tax payer get screwed. The sister company of the Washington Post makes millions.
These diploma mill shouldn’t only be cut off from any eligibility for student loans; many of their officials should be arrested for fraud, convicted, and imprisoned for many years.
What does the Securities and Exchange Commission have to do with the Dept of Education? Someone is barking up the wrong tree.
Short selling should not be allowed. It can only occur by raiding investors accounts and using the margined stocks to “lend” to short sellers. No investor in his right mind would allow his stocks to be used for such a purpose if he had a choice.
Manny Asensio is a different story.
As well, you can tell a broker that you do not want your stocks lent out.
Not only do investors not receive a fee they are not even consulted as to when the scam occurs. Short selling does nothing positive for the market but does do great damage to the investors (as opposed to the speculators and market manipulators). This is why it is forbidden in the German stock market.
Speculators can use options to bet against a stock. If you believe a stock is overvalued then buy puts or sell calls.
The mechanism of shorting essentially artificially inflates the supply of stock put on the market hence it biases the price downward. It increases the risk of owning stock particularly for newer and thinly traded stocks hence it damages those companies in many ways since they are easily attacked by these predators. No good comes to investors (as opposed to speculators) from allowing short selling of stocks.
All stocks bought on margin are subject to being taken and loaned out. Nothing an investor says about it would change that.
I have heard the “market efficiency” argument for decades but it is all baloney. To me short selling is capitalistic cannibalism and hurts capital accumulation hence it raises prices across the board.
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