Posted on 08/25/2010 12:40:27 PM PDT by unspun
In shocking news, the New York Times cites figures that investors withdrew $33.12 billion from domestic stock market mutual funds in the first seven months of this year when billions of dollars should have been expected to be flowing in.
The New York Times blames this unusual development on “economic uncertainty.” One explanation is that the financial reform bill pushed by President Obama and passed by Congressional liberals was a complete fraud. The bill failed to protect invested capital, did nothing to stop the devaluation of our homes, and didn’t reform Fannie Mae and Freddie Mac, the government-sponsored mortgage entities involved in the financial crisis.
As Accuracy in Media has consistently reported, the basic problem is that the regulations that protected investors and their capital were removed, beginning in 2007 under the George W. Bush Administration, and have not been restored.
Zubi Diamond, author of Wizards of Wall Street, has released a new YouTube video highlighting what needs to be done and how the nation got into this predicament. He has focused attention on the notorious hedge fund short sellers who brought on the 2008 economic and financial crisis that paved the way for Barack Obama’s election as president.
These short sellers, such as George Soros, made billions of dollars betting on the collapse of the subprime mortgage industry as ordinary Americans lost their savings.
“They subverted our capitalist system economy in order to achieve a regime change in America. They looted the country and visited financial violence on the American people. American families bear the brunt of the destruction of capitalism and the installation of socialism in their country with job losses, home foreclosures, and retirement portfolio wipe-outs,” Diamond charges.
The major media, he said, have concealed the truth about what has happened from the American people.
He explained, “Most Americans cannot even imagine the fact that this calamitous crisis was deliberately engineered by enemies and traitors within our borders.”
Diamond urged the media to start educating the public about what is happening: “Most people do not know how capitalism works, in terms of the safeguard regulations which protected our capitalist economy. Once you unhinge and unscrew the nuts and bolts, and tear down the underpinnings and remove the safeguard regulations, you have succeeded in dismantling capitalism and killing the economic engine of growth. They are killing the goose that lays the golden egg.”
In response to the Times article about investors fleeing the market, Diamond said, “Who wouldn’t flee the market when you are being robbed every day by the hedge fund short sellers? They are targeting and preying on the small investors. The reality is beginning to sink in as more people and more people realize that the economy is in terrible shape, and it is not going to recover.”
A recovery is possible, Diamond said. But the Congress and the President have to restore the regulations that “protect the invested capital that is needed to create jobs, and to protect the value of our homes and assets. You must restrict short sale transactions, end mark to market accounting completely, restore the old circuit breakers, and restore the old uptick rule to their original condition without any modification.”
His recommendations include:
Diamond explained how the looting and destruction of the economy have occurred. “To short sell a stock is to sell a stock you do not own. Such a transaction should be governed by a regulation, designed to protect the owners of the stock, their assets and invested capital. That regulation which governed short sale transactions is called the uptick rule or short sale restriction rule.”
He added, “The Managed Funds Association (MFA), the association of hedge fund short sellers, successfully lobbied regulators and policy makers to remove that short sale restriction requirement, meaning they now have the government’s approval to sell what they do not own unrestricted, when they know very well that selling what they do not own is stealing. The only difference is that they are stealing with the approval of the government.”
“Our stock market is a broken market,” Diamond added. “There is no investor confidence because the invested capital is not protected. There is no uptick rule, no circuit breakers and no trading curb. There are no legal protections for the capital. There is no capitalism.”
The stock market, he said, has become “a money manufacturing factory. The commodities being processed are the small investors, retirement portfolios, and mutual fund investors.”
As a result, the small investors are experiencing diminishing returns and losing their appetite for risk.
The Times should explain to its readers the real reason why investors are fleeing the stock market, he said.
“Our publicly traded companies can now be held hostage by the hedge fund short sellers as they continue preying on investors,” he said. “They can evaporate any of the publicly traded companies in short order. They demonstrated that capability in the ‘flash crash’ of May 6, 2010, when they drove down the stock price of Accenture (ticker symbol CAN) from $44 per share to one cent per share in a 15-minute time period.”
The SEC is supposed to be an independent regulatory body to protect the integrity of the market but it is under the control of the Managed Funds Association. “They have rigged and primed the market for manipulation,” Diamond said.
In the past, ordinary Americans could analyze the market and individual companies and invest accordingly. Today, the situation is different.
“Without the short sale restriction regulation, the fundamental attributes of the companies are rendered useless,” he said. “The effective use of technical analysis has been nullified. When it does seem to work, it can be used by the hedge fund short sellers to manipulate the market as they set traps for investors at each fulcrum, resistance or support levels.”
He explained, “You have a market that is very difficult to trade or invest in. This is a market that can do anything, reverse, go up or down, or reverse again with increased volatility as the manipulators are on a search mission, preying on small investors, searching for investment capital to steal.”
Diamond compared the stock market to a Las Vegas casino, where the house always wins. The MFA is the house in today’s market. “They own the stock market and the stock market police—the SEC. Everything is stacked against the small investors. They operate with impunity.”
Diamond said the hedge fund short sellers use various techniques to accomplish their insidious goals. These include “dark pools,” in which their transactions are concealed from the public; flash orders; front running; insider trading; and collusion. He explained, “They raid companies at will, shorting stocks fearlessly without an uptick, colluding to determine the direction of the market. They trade fearlessly without risk, and they transferred all the fear, and risk of investment losses and capital losses to the small investors, regular investors, retirement portfolios and mutual funds.
As if the situation wasn’t bad enough, the so-called financial reform bill which Diamond warned against but passed the Congress exempts the SEC from the Freedom of Information Act.
“The documents that I was available to see to help me write the book Wizards of Wall Street will no longer be made available to the public or journalists. The SEC will now only release documents to the Congress and the courts. The MFA made sure that its lap dogs at the SEC are shielded from scrutiny and criticism as they cooperate with the agents of George Soros in destroying America and capitalism.”
Cliff Kincaid is the Editor of Accuracy in Media, and can be contacted cliff.kincaid@aim.org
The market relies on the media and the media is rotten. Idiots.
We need to make clear before the election how the economic collapse was engineered by the Democrats and their special interest controllers.
Second is easily confirmed with some easy reading on what lead up to the first TARP bailout.
bttt
END TIMES ETC. ECONOMIC PING
Thanks
A superb post. The fact that some investors made billions betting on these defaults doesn't change the basic facts. John Paulson was the big winner here. If you read Zuckerman's book about it, Paulson's researcher used computer analysis of mortgages to discern the coming implosion.
Thanks for the info. I'm pretty sure he wasn't the only one. ;-`
The mark to market rule is a stupid rule. Just because you have not been able to sell a product, stock, or house does not mean it is worthless. A house for example has a replacement value that can easily be calculated. A company has a value too, just because someone drove down the price of the stock does not change the assets that are owned. There is still a “breakup” value to the company.
I have seen a stock go down to a few bucks one day and back up to $20 or $30 bucks in 1-3 days. It is ridiculous to say that the “true value” of the company actually changed that much during that time period, yet that is essentially the gist of the mark to market rule.
Thanks for the ping!
And how do you factor in,
calculate
the destructive goals, strategies, efforts, the effects
of these controllers
who’ve decided to destroy the nation of their own birth in their arrogant satanic globalist aims?:::
http://www.freerepublic.com/focus/religion/2519352/posts?page=2#2
I did not factor them in. I merely made a small contribution to the thread - not a dissertation on all that has happened or is going on.
I understand that.
Was just trying to pick your very perceptive and discerning brain.
Thx anyway.
bump
please add me to the ping lists
I am aware that the UN’s millennium plans included their global aspirations to function as a global government. I printed them out on hard copy, and they are long gone from their web site.
There are evil forces in the world. I try to live according to God's commandments and pray daily. I hope for the best and try to prepare for the worst. I share what I know with close friends and family.
The few times I posted anything here on the subject, the thread was changed to a different category - one that does not get a lot of attention.
So I pray for my family, my country, and my government that we should have honest and christian people who will help the USA to put our efforts into things that will be for the glory of God.
That's about all I have to say on the subject.
for later read
Sounds like an excellent job well done.
I wish all FREEPERS were as aware, Godly and diligent in behalf of Godly priorities and love of country.
THX THX.
Careful, you might break a tooth.
apt comments
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