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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Jorj X Mckie who wrote (10396)10/23/2008 9:58:40 AM
From: Hawkmoon2 Recommendations  Read Replies (3) | Respond to of 33421
 
Swan/Wobbles,

But they are walking away.. and the naked shorts and CDS manipulators are getting ready to walk away as well, having exposed the fraud of the former, and then committing a fraud of their own to tear down the house of cards. When they are done with their shorting campaign, the rubble they leave behind in the equities markets will present a stark landscape in many sectors.

And the everyday person who is relying up their pension and 401K to retire on are left holding the bag.

Recently the SEC imposed rules requiring institutional short positions to be reported, but deliberately exempted options. Yet, the practice of "synthetic shorting", or shorting SSF (single stock futures) is a easy manner by which shorts can continue to hammer down an equity.

Here again, we're seeing the use of derivatives to manipulate the markets. When folks can initiate large scare long puts and call shorts without holding the underlying stock, it violates the entire principle of what derivatives were intended for, to hedge risk.

And if we think the CDS market is bad, I have to believe the so called "regulated" derivatives markets are just grave a systemic risk when abused in this manner.

Hawk