Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (45395)	7/22/2007 9:38:10 PM
From: E. Charters	Read Replies (1) \| Respond to of 78416

For one thing I think flooding into a "new country" is definitely irrational exuberance.. for another, to refuse business because you are just making way too much money is another kind of irrationality. In fact nobody every made too much money, with the possible exception of Bill Gates. I think for the most part, it is an excuse. What they really mean is there is just too little business and they want to channel it to where they can support the market.. i.e. do a pump and dump. And every pump and dump broker worth his salt sees the irrational exuberance of China myth plays as the new cinch . Well worth the candle to blow paper at .. for 6 months per play. HON. MR. VEITCH: Mr. Speaker, I was going to wait until after question period and not take up the time, but I'll do it now. On Monday last the hon. first member for Vancouver East asked as to the suspension of a stock by the superintendent of brokers and any report made on that suspension. It referred to New Cinch Uranium Ltd. The answer, Mr. Speaker, is that the superintendent of brokers' office was only involved in the New Cinch Uranium investigation in an assistance capacity to the Royal Canadian Mounted Police commercial crime section from Toronto, Ontario. The trading in New Cinch was never suspended by the superintendent of brokers. New Cinch shares were halted by the Vancouver Stock Exchange at the request of New Cinch Uranium and also Willroy Mines Ltd., who had invested heavily in the stock on January 14, 1981. This halt continued on January 15, 1981, and was removed on January 16, 1981, at noon. On or about February 5, 1981, trading in the shares of New Cinch Uranium Ltd. was halted by the Vancouver Stock Exchange, pending an investigation into recent price depreciation in New Cinch stock. The Vancouver Stock Exchange attempted to locate their records to confirm the exact date that trading was reinstated after the February 5, 1981, halt, but I was unable to get that exact information, Mr. Speaker. On February 13, 1981, Willroy Mines Ltd. brought an action to the Supreme Court of Ontario against New Cinch and 14 other defendants, claiming damages of $21.4 million in connection with the sale of shares and warrants of New Cinch. On or about June 19, 1985, the civil suit was settled out of court for approximately $4 million. The speculation about salted assays harkens back to 1980 and the case of New Cinch Uranium Ltd., a Canadian junior whose stock ran from $2 to $29 over four months. New Cinch said it had a rich gold deposit in New Mexico, piquing the interest of Willroy Mines Ltd., which paid $26 million for 15 per cent of New Cinch. Trouble was, when Willroy did its own drilling, the company could not find the gold. In this case, the salting took place at the assay stage. "It has been a stock market roller-coaster ride reminiscent of the wildest tales of rags to riches to rags in the early era of Canadian 'penny-mining’ euphoria," Maclean’s reported at the time. "Prospectors in faraway places, long-shot mineral claims in moose pasture, excited promotion within financial circles, frantic buying on flimsy evidence - and the whole panoply of spontaneous irrationality largely eliminated from the stock market in recent decades with increasing regulation designed to protect investors and promoters from their own stupidity and greed." The stock crashed and burned. Oh, and there was a murder, too, of an employee of El Paso Chem-Tec Laboratories, which had done the assay work. Lawsuits ensued. Are the Chinese not just doing another Hugo Chavez in a different fashion? If the Chintel had hired Zhang to recruit Paterson into this scheme, it would not surprise me. Follow the money and follow it as far as it goes. In this case paranoia is justified. Brokers' business is to sell paper. They are not there to build mines. They take the route of the least resistance into the market and out. They like China because it causes a paper flood. People are eager to follow the hot money. It is an effective scam from the get go.