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Technology Stocks : Renren -- Ignore unavailable to you. Want to Upgrade?

To: zax who wrote (53)	5/13/2011 8:21:34 PM
From: FR1	Read Replies (1) \| Respond to of 310

Personally I think there is more truth to the idea that the big sell off is a major reshuffling of funds for all the brokerage firms for a few reasons: 1) Shorting the dollar was everyone's play and now that the European crisis is moving into new super-bad territory the dollar is a safe haven. So everyone is caught by surprise and they have to cover their shorts at the point of a gun. This also makes a lot of other things change since oil is priced in dollars. Tons of brokers are having to meet margin calls and selling things they don't want to sell. 2) QE2 is ending and nobody knows where that will go. 3) Obama is starting the "Consumer Advocacy" office that will destroy the ability of any financial institution to make money. That brigs down that whole sector. 4) Lastly there is a little scare from the YHOO deal. With all this action everyone is taking money off the table in the stocks starting with the ones that have run up the most. The important thing to remember is that nothing has changed about the fundamental nature of the companies or the reason to buy the stocks. China still has only 30% of its population on line and the whole name of the game in stocks is growth. The YHOO thing is a screw up by both parties. YNOO was told a long time ago that they had to reposition their assets in Alibaba because new Chinese laws prevented them from owning Airplay and the company management asked the board for direction. The board, including YHOO, ignored the request. So the management finally just moved Airplay to Ma becaus something had to be done. That is the argument from management's side. The argument from the YHOO side is that you don't take a valuable asset of a company and give it away for free without permission - that is flat-out theft and punishable by law. So both sides are idiots. The bad news is that it really does make people wonder if there is the rule of law in China and if not it means you cannot invest there. The government needs to punish both sides somehow and the Chinese government is just standing there like a deer frozen in the headlights. Do they have a SEC?