Yep and from other nations America should have listened.
Lessons from Hong Kong Speech October 1998:
As Professor Charles Goodhart noted: "Finance is rapidly becoming global; but laws and regulations are national." Because of tax and regulatory arbitrage, funds are moving increasingly to offshore centers to escape the tax and regulatory net. This legal anomaly means offshore funds can – and do- behave very differently from those onshore funds subject to stringent disclosure and regulatory requirements.
The hedge fund industry, for example, has rapidly grown from a handful in the early 1990s to more than 4000, with assets of US$400 billion. Their capacity to leverage up to nearly 20 times their capital makes them lethally potent. For example, Long Term Capital Management (LTCM), with US$4.8 billion in capital and debt of US$100 billion, has an exposure larger than the external debt of Korea, the 11th largest economy in the world. The LTCM failure has posed systemic risk that could bring down the large money center banks.
Since these investment funds operate in a non-transparent manner - they are only accountable to their limited shareholders - they have been able to take advantage of their power to leverage and to move quickly and secretly to take large positions in smaller markets. The 1993 IMF International Capital Markets report stated that some funds treat "an attack on a fixed exchange rate...as an assault on the central bank's accumulated international reserve stock". Since the incentives to win are tremendous, and with no regulatory restraint, some predatory hedge fund managers consider anything is fair game as long as they win. Human and social dimensions, as well as wider geo-political considerations, play no part in their game. Thus, predatory activities such as acting in concert and collusion to fix markets; naked short-selling; and spreading rumors to panic smaller investors, are not, and cannot be regulated, because the domestic regulatory framework, even if it exists at full strength, cannot prevent such illegal behavior as long as it radiates from offshore markets. Indeed, there is no information on such behavior because these funds are not required to disclose their positions and their flows."
This is exactly why the SEC needs to halt short selling and especially offshore till safe guards can be put into place.
Offshore as they have demonstrqated here are vicious callous types who care about nothing not even facts. Just the target and then exercise the short sell plan plus terrorize the target with media like the propaganda of every war.
SHut it down immediately and put in safe guards to protect the markets from short selling.
P2bAAAT & DSAS |
