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
Done.
IMHO, BHO knew going in that his mission was to wreck the economy so badly that an inevitable GOP successor and GOP led Congress would not be able to correct it.
Thanks for the comment. I suggest you spend some time at deepcapture.com.
Yes, but didn't that take a presidential signature?
From the same guy who brought us Henry Red China Lackey Paulson?
Done.
Apt points, thank you. Please be familiar with the information at http://deepcapture.com for more on the effects of a concerted effort in naked short selling, etc.
And now the SEC has at least attempted to become immune from FOIA demands, in the new “reform” act. Why?
Done.
For prayerful discernment:
PING TO END TIMES, DREAMS, VISIONS, PROPHECY AND PRAYER WARRIORS CONSULTANTS GROUPS:
Here’s a similar cheery note:
http://www.watchmanscry.com/forum/showthread.php?t=1315
. . . which is the only URL I could find for:
CALM BEFORE THE STORM by John Lewis
They have been lulled to sleep by the hypnotic voices of the talking heads- The media, blind religious leaders, politicians just before you go to bed- In the morning everything will be all right. Tell me a fable and I will sleep in peace through the dark night-
Gas prices dropping – time to go shopping, the sales are on. Obama’s been elected – Bush’s policies rejected, the change is on. The fairy tale of Bin Laden has faded into a figment of our imagination - As we have been lulled into a false security for our nation.
The Stimulus Packets and yet another Bailout- A superior intelligent Cabinet, your money’s safe don’t doubt. Great America, the world’s leader will continue to lead the way. The repetitive propaganda and rhetoric confidently say-
But I say, you have enjoyed your time of sleep and ease – now comes the shaking. The alarm has been sounding, yet many refused to be awakened. It has been the calm before the storm and the winds are now about to blow. Soon from Coast to Coast there will be a shaking as the Earth plates move below-
Day by day you have seen the price of gas free fall and the highways congested again. It shall soon rise (3) times as fast – the highways will be virtually empty – the price as it’s never been- Panic and chaos shall be created as the economic storm rages on. The powerful US Dollar you use to know will soon be gone-
Catastrophic loss and a domino effect of crisis’s (sic) seemingly every two weeks- As angry Americans are jarred from their complacency and sleep. Roaming the streets, armed gangs like zombies in night of the living dead- Store shelves empty, babies crying, looting and burning as many sit quietly in dread-
The sheeple shouted, NO, Prophet!! Tell us lies; prophesy smooth things – not what shall really be. What about peace, warm feelings of love, how great I am and of course prosperity? Don’t you know that this is God’s country and we are the chosen ones He adores? The storm will only last a few months at most and we will come out better than before.
Not so, you have moved into a new cycle and everything is being accelerated. Break yourself from the holographic illusions that you have created - Mass destruction, natural and man-made disasters - massive loss and loss of lives are only days away. The impact can be lessened only if My people would learn how to pray-
The abundance of this Christmas season will remain a memory in many minds. As the years following reveal the sign of different times - The first world nation we have known will no longer exist. It shall be humbled to be like unto a third world nation and many shall resist -
The Spirit calls to the Joseph’s that have been confined and limited by religious ideas and organizations. Get ready to come forth with wisdom, dreams and prophetic revelation - A transfer of wealth and power is at hand. Over night I shall set you forth as rulers and providers in this land -
In the midst of everything shaking and chaos shall a hidden people arise and be revealed - To proclaim my kingdom with supernatural power and the sick shall be healed. The old order of religion and government shall fade into the past- And the people will realize only My Truth shall last.
The Spirit summons the men and women of Issachar with understanding that know the times and seasons - You will be called to stand before leaders to declare what shall be and the reasons -
You are entering a cycle when darkness and light shall seemingly coexist for a little time. This twilight zone shall expose the best and the worst in humanity’s mind - Choose light as the planet and your solar system enters into a new day. A new consciousness shall emerge to show humanity a new way -
You are witnessing the ending of an age and the beginning of a new day. The transition shall be difficult for many, but My Grace will show you the way - Lift up your heads and rejoice as the kingdoms of men crumble and fall - Rest in Me as I AM revealed to be All in All.
John Lewis
__________________
~~~~~~~~~~~~~~~~~~~~~~~~~
“Keep yourselves in the love of God,
looking for the mercy of our Lord Jesus
Christ unto eternal life.” (Jude 21)
Thank you for your efforts and prayers.
God bless
I watched that deepcapture video last year, and there’s no question that naked short selling needs to be completely stopped by the SEC. Regarding the company discussed in that video, however, I think the main reason the stock price dropped was because the company wasn’t doing very well in its business and not because of naked short selling. A big decline like that over a fairly long duration is usually caused by long holders bailing out along with conventional short selling in accordance with all the SEC regulations.
Thanks for the ping!
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