Wednesday, January 21, 2009

Greed and Dishonesty by
Stock Market Manipulators

For goodness sake! A blind man can see that unprincipled and rampant naked-short-sellers, masquerading as good-for-the-market hedge fund management, are manipulating current stock markets. Out of control market speculation is a significant cause in the present inability of the stock markets to operate correctly. Investment seems to be the forgotten market purpose--while driving stock price down in a loose confederation of short selling more the rule. Money is selfishly extracted--not by investment--but rather by sucking the life blood from business. Immediate controls are necessary on these money-hungry stock short-sellers and hedge-fund operators. Several corrective steps have been mentioned over the past few months to corral these callous and deceitful market thieves. Here are just a couple of rational changes that will immediately yield a more honest and effective stock market:

1. Immediately place the up-tick rule in effect. Short sellers can not sell stock they don't own when that stock is losing value. Short sells are allowed only when the stock price is gaining.

2. Eliminate “naked short selling”. Short selling should be backed by legitimate “borrowed” stock…where trading rights to that short stock is paid for by a non-returnable and significant lending fee. Audit and investigate more aggressively...and institute very significant penalties for proven naked short selling.

These and other appropriate oversight should be directly implemented by swift action of the Securities and Exchange Commission--or by Executive Order of President Obama should that be required. More market regulation is urgently needed! So far the new president's administration has paid little more than a healthy quanity of lip service to a stock market out of control. Immeditate executive action is both required and necessary. Investors should personally look at the hedge fund cabal. Clearly, too much money concentrated in too few hands. Absolute unchained collaboration with strong anti-trust implications is apparent. No wonder hedge management spends big dollars on federal lobbyist to help preserve their unregulated status. If they had to deal with full transparency in the light of day they would move like cockroaches for shadowy protection under rocks.

Scum will always float to the surface...

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