Thursday, 18 September 2008 01:00

Straight from Orwell's mouth: Big Brother is watching, and manipulating, and allowing some to cheat

Now Cuomo is looking to prosecute short sellers who "spread false rumors" to manipulate share price. Let's look at this on the long side.

Schwartz of Bear Strearns says on public TV he has no liquidity problem -

Lehman's CFO and CEO caught in multiple lies in public when Einhorn confronted them about there bad asset situation, evidently to "manipulate" the share price upwards of what normal valuations portend.

GGP's entire management saying they have funding in hand and or in no financing predicament, evidently to "manipulate their share price.

MBIA and Ambac CEO's saying on TV and in print media they are solvent, their losses will revert, and that they expect no more significant losses from mortgages and real estate.

The homebuilder CEOs calling the bottom of the housing market 3 or 4 times in the last year.

I can go on for a while. I know one can say these guys are just expressing their opinion (at least some of them can say that, but some were just flat out lying), but the same can be said for the shorts. That's what makes a market. The US and the UK are trying to clog free market capitalism, and that never works out to the positive. Now, certain junk companies can continue to sell shares to your 401k manager and float up and up until the economics finally catches up to them, then bank - your broke just because the government tried to censor the guys who perform some of the most rigorous research on the street. Tell me lawyers, do the 401k plan participants have legal recourse against the censors???

Our republican administration shames me. They go through all of this effort, and have yet to demand that the companies who are holding all of this trash on their balance sheets come clean and show the "transparency" they are requesting from the hedge funds who invest in the companies. As a matter of fact, the FASB rules that would have given more transparency were pushed back to allow companies to hide this trash!!! Yet, the guys who short the trash companies have to become more transparent!

Rant offline...

Last modified on Thursday, 18 September 2008 01:00

1 comment

  • Comment Link Jarret Pazahanick Thursday, 18 September 2008 18:03 posted by Jarret Pazahanick

    Couldnt agree with this more....if I hear one more "the short sellers are responsible for this mess" .....

    Keep up the great work reggie though I cant help get the feeling that some of the timelines on the research (HSBC and regionals) will get pushed out a bit due to government intervention (UK and US) though I sure hope I am wrong.

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