Posted on 08/25/2010 12:40:27 PM PDT by unspun
George Soros...the ultimate inside trader.
Also see, “The Phoenix Economy”
http://gulagbound.com/3776/the-phoenix-economy-environmentalist-new-age-cloward-piven
The Failed State — planned and undergoing execution.
This is why Obama speaks of a one term presidency. They want the collapse of America to be so bad that GOP’ers in office, in 2013 won’t be able to correct it — all to bring in the global Marxofascist revolution.
401ks are being emptied by the unemployed to keep their houses and cars.
It may be the decade of our discontent...or even longer...the generations of our discontent.
Agreed. Poppy Bush was a dope too because he had Nicholas Brady who worked for Dillon Read on Wall Street. Brady was a sharp cookie. The father should have made sure GW had someone on Wall Street he trusted. Also someone at the SEC who knew what they were doing.
“The rampant unemployment is causing many people to dig into their financial reserves simply to stay alive.”
This is happening all over the USA. The goal of The Imam is to wipe out the middle class. The morons who watch TV are clueless and easily branwashed by TV - ALL of TV including Fox/Saudia.
Look at the drooling idiots who voted for McCain.
“Who wouldn’t flee the market when you are being robbed every day by the hedge fund short sellers?”
The people are fleeing the market because it stinks. If that were not the case, the short sellers would be getting killed. The economy is not expanding, taxes are going up along with regulation and government ownership of major sectors. Why shouldn’t short sellers be allowed to operate and make a profit (or loss). At least they are telling the political class that their policies stink.
As Accuracy in Media has consistently MISREPRESENTED , the basic problem is that the regulations that protected investors and their capital were removed, beginning in 2007 under the NABCI PELOSI - HARRY REID CONTROLLED CONGRESS, and have not been restored. There, fixed it...........
As Accuracy in Media has consistently MISREPRESENTED , the basic problem is that the regulations that protected investors and their capital were removed, beginning in 2007 under the NANCY PELOSI - HARRY REID CONTROLLED CONGRESS, and have not been restored. There, fixed it...........
Please put me on the list. Thanks.
Amen, amen, amen!
This is a one-sided article on short selling. Short sellers alone cannot cause the price of an asset to collapse and then stay down at collapsed prices. Shorts can drive the price of an asset way down, but if the asset has real value above that depressed price then buyers will appear who drive the price back up to reasonable levels and force the shorts to cover their positions. The value of mortgage-back securities collapsed because home buyers did not pay their mortgages and caused defaults on the MBS. Those defaults on MBS interest payments allowed short sellers to drive MBS prices down to a fraction of their original value.
Regarding the uptick rule, I’d like to see that rule reinstated but that rule alone does not stop short selling or long holders from bailing out of a stock. The best description I’ve heard of the uptick rule is that “it acts like a parachute and slows the price descent down to the same ultimate price level.” That’s basically all it does, but that slowing of the descent is highly beneficial to small investors because it gives them more time to make a decision to get out before the price totally collapses.
Short selling is actually highly beneficial in many situations and in no way is it “stealing.” It’s beneficial because it puts people on both sides of the market with substantial positions. That means when really bad news hits a stock, there are investors (the shorts) who make a big profit off the bad news and the plunge in the stock price. So at the time when the fear of buying is the greatest and nobody wants to buy a stock for a long position, who are the buyers who prevent a total collapse of the stock price and complete panic in that market? It’s the shorts who are buying while the longs are in panic. The shorts are taking their profits and stabilizing the price of that stock or bond, which is highly beneficial when longs are paralyzed by fear.
I’d have to agree, however, that the SEC allows too high of a percentage of stocks and bonds to be sold short and that percentage should be reduced. Shorts did a lot of excessive damage to corporate bonds back in late 2008 when small investors paniced and dumped bond funds, and that excessive damage was partly caused by the SEC allowing too many corporate bonds to be sold short.
The other benefit of short selling is that it helps to put a cap on wild speculative rallies that often draw in the least sophisticated investors who buy right near the top at ridiculously high prices, such as when the public bought tech stocks at absurdly high prices in the first half of the year 2000. Most shorts wait until prices are falling before they go short, but there are a lot of guys running long & short funds who will short right when a stock looks topped out and before it really starts falling because they are covered by their long positions against a broad market rally.
The main causes of the housing bubble and price collapse was excessively low interest rates and lax lending standards by the Fed, too much government support for the housing market by Fannie and Freddie, bad data out of those companies that caused other lenders to underestimate the risk of sub-prime lending, and general excessive bullishness and optimism about the housing market among most Americans which always happens near a final blow-off top in a market. The problem with this big market top is that is was fueled primarily with borrowed money and thus caused massive losses among mortgage lenders. But fundamentally it wasn’t much different from the stock market’s big overbought top in 2000.
Sometime back, boy king obama was interviewed by one of his media types about the shrinking economy. He giggled. Just wow.
"Nut" he may be. But are his statements below refutable?
“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 first two sentences don’t need to be refuted - they need to be proven. He hasn’t done that. Can you?
IIRC, Soros lost over two billion trying to scam Malaysia. He got beat, and admitted it. We should do something similar.
It’s all “unexpected”.....
Excellent post.
As always, there are two sides to any topic. Thanks for the clarity.
The SEC is independent of the Administration anyway. Bush had no hand in this decision.
All that should have been said is that it happened in 2007.
http://www.sec.gov/about/whatwedo.shtml
Agreed...
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