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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: ravenseye who wrote (3176)	2/8/2008 2:22:17 AM
From: NightOwl	Read Replies (2) \| Respond to of 5034

Aguirre is right. It seems that the federal regulator/politicians have agreed upon a game plan whereby the Banks and major brokers of Wall Street will be given until late April, or possibly May, to raise the capital they need to fill the holes left by their sub-prime mortgage fraud. Or to put it another way... all the market's peculiar volatility, since December at least, is being driven by a concerted effort to allow the said malefactors a means by which they can acquire a maximum amount of our net worth in the shortest possible time to minimize the effects of their next round of write-offs. In the end they will defend against the inevitable cry for stronger regulation by claiming that their "free market mechanisms" (i.e., criminal churning mechanisms) are solely responsible for resolving the "unfortunate and unforeseen excesses" (a/k/a, the fraudulent scam) in the mortgage market. Thereby assuring their vaunted "self regulatory framework" its "rightful" place... next to Mom... apple pie... and the blessed American Way. What we are witnessing is just another example of the natural end product of these four ingrained economic policies: 1. Maintenance of a monopoly on market transparency solely for the marketers (e.g., Wall Street) and a relative few of their most profitable clients; 2. The Bigger Is Better Rule (a/k/a, integration of financial services, i.e. banking/brokerage and de facto integration of insurance services by control of the insured risk); 3. The development of derivative "products" that (a) have values impossible to identify or prove until its time to perform, (b)are understood by few and (c) are illiquid; and 4. The best regulation is deregulation. Any three of these policies... when combined with human greed; "independent" salesmen with no responsibility for the product risks being sold; and institutions for whom the maintenance of market share/cash flow can supersede risk management as a priority... will inevitably produce ever larger outbreaks of fraud and corruption in any market. The S&L mess... the Utility/Power/Enron fiasco... naked shorting... the mortgage merry-go-round all stem from these policies. Then too there are the routine, institutionalized, every day scams of annuity "investments"... "credit" related insurance of all kinds... variable interest debt... "minimum" payment schedules... all the other daily transactions in which people buy things for which they have deficient understanding or information and frequently no need at all. They thrive under the same policies. We certainly can't expect Congress or any other governmental body to "fix" this. You'll find at least 3 out of 4 of the same policy prerequisites at work in any agency of government having to do with finance, money or the dispensation of public services/works. In deed... to change these policies in a material way would require us all to change in material ways... many of which we might not like... or could not achieve. Which I suppose... is why I have simply decided to go crazy... and learn to love Robespierre... or any other wacko who meant well but just couldn't take the unmitigated irony any more. <Hoo><ack><Haa> 0\|0