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Financial Expert Warns of Economic Collapse
Gulag Bound ^ | Cliff Kincaid

Posted on 08/25/2010 12:40:27 PM PDT by unspun

In shocking news, the New York Times cites figures that investors withdrew $33.12 billion from domestic stock market mutual funds in the first seven months of this year when billions of dollars should have been expected to be flowing in.

The New York Times blames this unusual development on “economic uncertainty.” One explanation is that the financial reform bill pushed by President Obama and passed by Congressional liberals was a complete fraud. The bill failed to protect invested capital, did nothing to stop the devaluation of our homes, and didn’t reform Fannie Mae and Freddie Mac, the government-sponsored mortgage entities involved in the financial crisis.

As Accuracy in Media has consistently reported, the basic problem is that the regulations that protected investors and their capital were removed, beginning in 2007 under the George W. Bush Administration, and have not been restored.

Zubi Diamond, author of Wizards of Wall Street, has released a new YouTube video highlighting what needs to be done and how the nation got into this predicament. He has focused attention on the notorious hedge fund short sellers who brought on the 2008 economic and financial crisis that paved the way for Barack Obama’s election as president.

These short sellers, such as George Soros, made billions of dollars betting on the collapse of the subprime mortgage industry as ordinary Americans lost their savings.

“They subverted our capitalist system economy in order to achieve a regime change in America. They looted the country and visited financial violence on the American people. American families bear the brunt of the destruction of capitalism and the installation of socialism in their country with job losses, home foreclosures, and retirement portfolio wipe-outs,” Diamond charges.

The major media, he said, have concealed the truth about what has happened from the American people.

He explained, “Most Americans cannot even imagine the fact that this calamitous crisis was deliberately engineered by enemies and traitors within our borders.”

Diamond urged the media to start educating the public about what is happening: “Most people do not know how capitalism works, in terms of the safeguard regulations which protected our capitalist economy. Once you unhinge and unscrew the nuts and bolts, and tear down the underpinnings and remove the safeguard regulations, you have succeeded in dismantling capitalism and killing the economic engine of growth. They are killing the goose that lays the golden egg.”

In response to the Times article about investors fleeing the market, Diamond said, “Who wouldn’t flee the market when you are being robbed every day by the hedge fund short sellers? They are targeting and preying on the small investors. The reality is beginning to sink in as more people and more people realize that the economy is in terrible shape, and it is not going to recover.”

A recovery is possible, Diamond said. But the Congress and the President have to restore the regulations that “protect the invested capital that is needed to create jobs, and to protect the value of our homes and assets. You must restrict short sale transactions, end mark to market accounting completely, restore the old circuit breakers, and restore the old uptick rule to their original condition without any modification.”

His recommendations include:

A powerful film, Stock Shock: The Short Selling of the American Dream, analyzes this phenomenon as it relates to the rise and fall of Sirius XM radio stock. The film asserts that the removal of the uptick rule in 2007 by the Securities and Exchange Commission (SEC) led to the rise of short selling and stock market manipulation.

Diamond explained how the looting and destruction of the economy have occurred. “To short sell a stock is to sell a stock you do not own. Such a transaction should be governed by a regulation, designed to protect the owners of the stock, their assets and invested capital. That regulation which governed short sale transactions is called the uptick rule or short sale restriction rule.”

He added, “The Managed Funds Association (MFA), the association of hedge fund short sellers, successfully lobbied regulators and policy makers to remove that short sale restriction requirement, meaning they now have the government’s approval to sell what they do not own unrestricted, when they know very well that selling what they do not own is stealing. The only difference is that they are stealing with the approval of the government.”

“Our stock market is a broken market,” Diamond added. “There is no investor confidence because the invested capital is not protected. There is no uptick rule, no circuit breakers and no trading curb. There are no legal protections for the capital. There is no capitalism.”

The stock market, he said, has become “a money manufacturing factory. The commodities being processed are the small investors, retirement portfolios, and mutual fund investors.”

As a result, the small investors are experiencing diminishing returns and losing their appetite for risk.

The Times should explain to its readers the real reason why investors are fleeing the stock market, he said.

“Our publicly traded companies can now be held hostage by the hedge fund short sellers as they continue preying on investors,” he said. “They can evaporate any of the publicly traded companies in short order. They demonstrated that capability in the ‘flash crash’ of May 6, 2010, when they drove down the stock price of Accenture (ticker symbol CAN) from $44 per share to one cent per share in a 15-minute time period.”

The SEC is supposed to be an independent regulatory body to protect the integrity of the market but it is under the control of the Managed Funds Association. “They have rigged and primed the market for manipulation,” Diamond said.

In the past, ordinary Americans could analyze the market and individual companies and invest accordingly. Today, the situation is different.

“Without the short sale restriction regulation, the fundamental attributes of the companies are rendered useless,” he said. “The effective use of technical analysis has been nullified. When it does seem to work, it can be used by the hedge fund short sellers to manipulate the market as they set traps for investors at each fulcrum, resistance or support levels.”

He explained, “You have a market that is very difficult to trade or invest in. This is a market that can do anything, reverse, go up or down, or reverse again with increased volatility as the manipulators are on a search mission, preying on small investors, searching for investment capital to steal.”

Diamond compared the stock market to a Las Vegas casino, where the house always wins. The MFA is the house in today’s market. “They own the stock market and the stock market police—the SEC. Everything is stacked against the small investors. They operate with impunity.”

Diamond said the hedge fund short sellers use various techniques to accomplish their insidious goals. These include “dark pools,” in which their transactions are concealed from the public; flash orders; front running; insider trading; and collusion. He explained, “They raid companies at will, shorting stocks fearlessly without an uptick, colluding to determine the direction of the market. They trade fearlessly without risk, and they transferred all the fear, and risk of investment losses and capital losses to the small investors, regular investors, retirement portfolios and mutual funds.

As if the situation wasn’t bad enough, the so-called financial reform bill which Diamond warned against but passed the Congress exempts the SEC from the Freedom of Information Act.

“The documents that I was available to see to help me write the book Wizards of Wall Street will no longer be made available to the public or journalists. The SEC will now only release documents to the Congress and the courts. The MFA made sure that its lap dogs at the SEC are shielded from scrutiny and criticism as they cooperate with the agents of George Soros in destroying America and capitalism.”


Cliff Kincaid is the Editor of Accuracy in Media, and can be contacted cliff.kincaid@aim.org

Graphic images added by Gulag Bound


TOPICS: Business/Economy; Extended News; News/Current Events
KEYWORDS: manufacturedcrisis; zubidiamond
Navigation: use the links below to view more comments.
first 1-5051-71 next last

1 posted on 08/25/2010 12:40:30 PM PDT by unspun
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To: 1035rep; amom; Arthur Wildfire! March; azkathy; betty boop; bitt; boxlunch; Clump; Deepest End; ...
FR Ping List for GulagBound.com, Investigating Obama, & "The Awakening"

Please reply or FReepmail, if you want on or off this list.

Please ask your candidates and politicians The Three Sovereignty Now Questions.

2 posted on 08/25/2010 12:41:25 PM PDT by unspun (It's the Sovereignty, Stu... um... art. | WE ARE GULAG BOUND)
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To: unspun

The “Summer of Recovery” is soon to be followed by the “Fall of America”


3 posted on 08/25/2010 12:42:36 PM PDT by Lucky9teen (The "Summer of Recovery" is soon to be followed by the "Fall of America")
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To: Lucky9teen

Wouldn’t that be, “the Winter of our Discontent?”


4 posted on 08/25/2010 12:44:27 PM PDT by DoughtyOne (UniTea! It's not Rs vs Ds you dimwits. It's Cs vs Ls. Cut the crap & lets build for success.)
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To: unspun

Invest in precious metals: copper, lead, brass.


5 posted on 08/25/2010 12:45:31 PM PDT by DTogo (High time to bring back the Sons of Liberty !!)
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To: unspun
These short sellers, such as George Soros, made billions of dollars betting on the collapse of the subprime mortgage industry as ordinary Americans lost their savings.

“They subverted our capitalist system economy in order to achieve a regime change in America. They looted the country and visited financial violence on the American people. American families bear the brunt of the destruction of capitalism and the installation of socialism in their country with job losses, home foreclosures, and retirement portfolio wipe-outs,” Diamond charges.

The major media, he said, have concealed the truth about what has happened from the American people.

truth. Known on FR for 2+ years.


6 posted on 08/25/2010 12:46:31 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spirito Sancto.)
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To: combat_boots

I’m sure a tingle goes down the magic muslims leg when he hears this news....


7 posted on 08/25/2010 12:48:41 PM PDT by oust the louse (When you subsidize poverty and failure, you get more of both.)
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To: unspun

Talk about a generic headline. When hasn’t a financial expert somewhere warned of economic collapse?


8 posted on 08/25/2010 12:48:47 PM PDT by FourPeas (God Save America)
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To: unspun
"billions of dollars should have been expected to be flowing in"

???? who has these billions?

9 posted on 08/25/2010 12:50:36 PM PDT by ex-snook ("Above all things, truth beareth away the victory")
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To: unspun
...Accuracy in Media has consistently reported, the basic problem is that the regulations that protected investors and their capital were removed, beginning in 2007 under the George W. Bush Administration...

Congress was controlled by the Demoncrats in 2007.

10 posted on 08/25/2010 12:51:10 PM PDT by FReepaholic (Yoiks...and away!!)
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To: unspun
As Accuracy in Media has consistently reported, the basic problem is that the regulations that protected investors and their capital were removed, beginning in 2007 under the George W. Bush Administration

Well, as a matter of fact, the Bush administration does certainly share the guilt.

But CRA was put into place by Jimmy Carter and put on steroids by Bill Clinton.

And the Glass-Steagal act was repealed by Bill Clinton.

Clinton did it on purpose. I frankly think that Bush was a bit of a dope about some things, notably the economy. He made a big, big mistake putting Paulson in charge at the Treasury, because Paulson was basically an agent of the Democrats.

11 posted on 08/25/2010 12:51:30 PM PDT by Cicero (Marcus Tullius.)
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To: unspun

Didn’t realize that Diamond was a type of nut...


12 posted on 08/25/2010 12:52:41 PM PDT by green iguana
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To: unspun

Please put me on the list.


13 posted on 08/25/2010 12:52:52 PM PDT by RobRoy (The US Today: Revelation 18:4)
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To: unspun

US Said Preparing New Laws To Seize Americans Retirement Accounts

http://www.eutimes.net/2010/08/us-said-preparing-new-laws-to-seize-americans-retirement-accounts/
_____________________

My take: I hope this is just be an ugly rumor. But it couldn’t get any traction without that kernel of doubt people have about this Congress and this administration.


14 posted on 08/25/2010 12:53:34 PM PDT by Lorianne (During times of universal deceit, telling the truth becomes a revolutionary act. ___ George Orwell)
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To: unspun

Much of the public also knows the market is rigged by hedge funds.


15 posted on 08/25/2010 12:54:10 PM PDT by Frantzie (Imam Ob*m* & Democrats support the VICTORY MOSQUE & TV supports Imam)
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To: DTogo

Lead...


16 posted on 08/25/2010 12:56:32 PM PDT by brytlea (Jesus loves me, this I know.)
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To: unspun

Well, it better collapse soon or else the Republicans will be blamed for ‘holding up the work of the people’ come Jan 2011.


17 posted on 08/25/2010 12:56:37 PM PDT by deadrock (Liberty is a bitch that needs to be bedded on a mattress of cadavers.)
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To: All

Video now in, at Gulag Bound (it’s a commercial for the book).

Cliff Kincaid promotes the work of Zubi Diamond (kind of like how some of you and I have promoted James Simpson’s) and is to be commended for it.

We should be paying attention to Mr. Diamond’s work.


18 posted on 08/25/2010 12:58:07 PM PDT by unspun (It's the Sovereignty, Stu... um... art. | WE ARE GULAG BOUND)
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To: unspun
When Obama took office, a contract that had kept me and my colleagues employed for 10 years was not renewed. I fell back on accrued vacation until I could track down more work. My colleague on the east coast sold stock and property to generate enough cash to stay afloat. It wasn't just uncertainty about the future of the investments. It was immediate need to eat and pay the bills that drove those decisions. The rampant unemployment is causing many people to dig into their financial reserves simply to stay alive.
19 posted on 08/25/2010 12:58:22 PM PDT by Myrddin
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To: unspun

OBAMAVILLE

Gett’n a head fake,
watchin' msn’s take;
All of their pundits oozing foul oil.
Clean’n my six gun on my front porch swing.
Felling my blood--
It’s beginnin' to boil.

Wasted away again in Obamaville,
Searchin' for a job so I can earn my salt.
Some people claim that Bush is to blame,
But I know it's Obama’s fault.

There’s no rhyme or reason,
They are all commitin’ treason
With nothing to show but a brand new tax or two.
But they are real beauties,
Despotic duties, how they got passed
I haven't a clue.

Wasted away again in Obamaville,
Searchin' for a job so I can earn my salt.
Some people claim that it’s Bush we should blame,
Now I think,-- hell with them it’s Obama’s fault.

I blew out my flip flop,
Stepped on a pop top;
Cut my heel, but I just cruise on back home.
Because no medical care will the doctors render
They say there’s little service I can tender
And there’s no need for me to hang on.

Wasted away again in Obamaville
Searchin' for a job so I can earn my salt.
Some people claim that Bush is to blame,
But I know, it's my own damn fault.
Yes, and some people claim that Bush is to blame,
And I know because of my vote it's my own damn fault damn fault.
20 posted on 08/25/2010 12:59:53 PM PDT by Kartographer (".. we mutually pledge to each other our lives, our fortunes, and our sacred honor.")
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To: unspun
These short sellers, such as George Soros, made billions of dollars betting on the collapse of the subprime mortgage industry as ordinary Americans lost their savings.

George Soros...the ultimate inside trader.

21 posted on 08/25/2010 1:01:05 PM PDT by Don Corleone ("Oil the gun..eat the cannolis. Take it to the Mattress.")
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To: Lucky9teen; All

Also see, “The Phoenix Economy”

http://gulagbound.com/3776/the-phoenix-economy-environmentalist-new-age-cloward-piven

The Failed State — planned and undergoing execution.

This is why Obama speaks of a one term presidency. They want the collapse of America to be so bad that GOP’ers in office, in 2013 won’t be able to correct it — all to bring in the global Marxofascist revolution.


22 posted on 08/25/2010 1:01:31 PM PDT by unspun (It's the Sovereignty, Stu... um... art. | WE ARE GULAG BOUND)
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To: unspun

401ks are being emptied by the unemployed to keep their houses and cars.


23 posted on 08/25/2010 1:01:43 PM PDT by AU72
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To: DoughtyOne
Wouldn’t that be, “the Winter of our Discontent?”

It may be the decade of our discontent...or even longer...the generations of our discontent.

24 posted on 08/25/2010 1:02:45 PM PDT by Don Corleone ("Oil the gun..eat the cannolis. Take it to the Mattress.")
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To: Cicero

Agreed. Poppy Bush was a dope too because he had Nicholas Brady who worked for Dillon Read on Wall Street. Brady was a sharp cookie. The father should have made sure GW had someone on Wall Street he trusted. Also someone at the SEC who knew what they were doing.


25 posted on 08/25/2010 1:03:12 PM PDT by Frantzie (Imam Ob*m* & Democrats support the VICTORY MOSQUE & TV supports Imam)
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To: Myrddin

“The rampant unemployment is causing many people to dig into their financial reserves simply to stay alive.”

This is happening all over the USA. The goal of The Imam is to wipe out the middle class. The morons who watch TV are clueless and easily branwashed by TV - ALL of TV including Fox/Saudia.

Look at the drooling idiots who voted for McCain.


26 posted on 08/25/2010 1:06:04 PM PDT by Frantzie (Imam Ob*m* & Democrats support the VICTORY MOSQUE & TV supports Imam)
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To: unspun

“Who wouldn’t flee the market when you are being robbed every day by the hedge fund short sellers?”

The people are fleeing the market because it stinks. If that were not the case, the short sellers would be getting killed. The economy is not expanding, taxes are going up along with regulation and government ownership of major sectors. Why shouldn’t short sellers be allowed to operate and make a profit (or loss). At least they are telling the political class that their policies stink.


27 posted on 08/25/2010 1:06:54 PM PDT by grumpygresh (Democrats delenda est)
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To: unspun
As Accuracy in Media has consistently reported, the basic problem is that the regulations that protected investors and their capital were removed, beginning in 2007 under the George W. Bush Administration, and have not been restored.

As Accuracy in Media has consistently MISREPRESENTED , the basic problem is that the regulations that protected investors and their capital were removed, beginning in 2007 under the NABCI PELOSI - HARRY REID CONTROLLED CONGRESS, and have not been restored. There, fixed it...........

28 posted on 08/25/2010 1:13:06 PM PDT by Red Badger (No, Obama's not the Antichrist. But he does have him in his MY FAVES.............)
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To: unspun
As Accuracy in Media has consistently reported, the basic problem is that the regulations that protected investors and their capital were removed, beginning in 2007 under the George W. Bush Administration, and have not been restored.

As Accuracy in Media has consistently MISREPRESENTED , the basic problem is that the regulations that protected investors and their capital were removed, beginning in 2007 under the NANCY PELOSI - HARRY REID CONTROLLED CONGRESS, and have not been restored. There, fixed it...........

29 posted on 08/25/2010 1:13:25 PM PDT by Red Badger (No, Obama's not the Antichrist. But he does have him in his MY FAVES.............)
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To: unspun

Please put me on the list. Thanks.


30 posted on 08/25/2010 1:19:57 PM PDT by LTCJ (The Constitution; first, last, always.)
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To: Cicero

Amen, amen, amen!


31 posted on 08/25/2010 1:21:01 PM PDT by brytlea (Jesus loves me, this I know.)
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To: unspun

This is a one-sided article on short selling. Short sellers alone cannot cause the price of an asset to collapse and then stay down at collapsed prices. Shorts can drive the price of an asset way down, but if the asset has real value above that depressed price then buyers will appear who drive the price back up to reasonable levels and force the shorts to cover their positions. The value of mortgage-back securities collapsed because home buyers did not pay their mortgages and caused defaults on the MBS. Those defaults on MBS interest payments allowed short sellers to drive MBS prices down to a fraction of their original value.

Regarding the uptick rule, I’d like to see that rule reinstated but that rule alone does not stop short selling or long holders from bailing out of a stock. The best description I’ve heard of the uptick rule is that “it acts like a parachute and slows the price descent down to the same ultimate price level.” That’s basically all it does, but that slowing of the descent is highly beneficial to small investors because it gives them more time to make a decision to get out before the price totally collapses.

Short selling is actually highly beneficial in many situations and in no way is it “stealing.” It’s beneficial because it puts people on both sides of the market with substantial positions. That means when really bad news hits a stock, there are investors (the shorts) who make a big profit off the bad news and the plunge in the stock price. So at the time when the fear of buying is the greatest and nobody wants to buy a stock for a long position, who are the buyers who prevent a total collapse of the stock price and complete panic in that market? It’s the shorts who are buying while the longs are in panic. The shorts are taking their profits and stabilizing the price of that stock or bond, which is highly beneficial when longs are paralyzed by fear.

I’d have to agree, however, that the SEC allows too high of a percentage of stocks and bonds to be sold short and that percentage should be reduced. Shorts did a lot of excessive damage to corporate bonds back in late 2008 when small investors paniced and dumped bond funds, and that excessive damage was partly caused by the SEC allowing too many corporate bonds to be sold short.

The other benefit of short selling is that it helps to put a cap on wild speculative rallies that often draw in the least sophisticated investors who buy right near the top at ridiculously high prices, such as when the public bought tech stocks at absurdly high prices in the first half of the year 2000. Most shorts wait until prices are falling before they go short, but there are a lot of guys running long & short funds who will short right when a stock looks topped out and before it really starts falling because they are covered by their long positions against a broad market rally.

The main causes of the housing bubble and price collapse was excessively low interest rates and lax lending standards by the Fed, too much government support for the housing market by Fannie and Freddie, bad data out of those companies that caused other lenders to underestimate the risk of sub-prime lending, and general excessive bullishness and optimism about the housing market among most Americans which always happens near a final blow-off top in a market. The problem with this big market top is that is was fueled primarily with borrowed money and thus caused massive losses among mortgage lenders. But fundamentally it wasn’t much different from the stock market’s big overbought top in 2000.


32 posted on 08/25/2010 1:21:53 PM PDT by socialism_stinX (He pays his mortgage, took no TARP money, and hasn't dumped a dollar of toxic assets on taxpayers.)
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To: unspun

Sometime back, boy king obama was interviewed by one of his media types about the shrinking economy. He giggled. Just wow.


33 posted on 08/25/2010 1:31:45 PM PDT by Texas resident (Outlaw fisherman)
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To: green iguana
Didn’t realize that Diamond was a type of nut...

"Nut" he may be. But are his statements below refutable?

“They subverted our capitalist system economy in order to achieve a regime change in America. They looted the country and visited financial violence on the American people. American families bear the brunt of the destruction of capitalism and the installation of socialism in their country with job losses, home foreclosures, and retirement portfolio wipe-outs,” Diamond charges.

34 posted on 08/25/2010 1:32:24 PM PDT by Bloody Sam Roberts (A fearless person cannot be controlled.)
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To: Bloody Sam Roberts

The first two sentences don’t need to be refuted - they need to be proven. He hasn’t done that. Can you?


35 posted on 08/25/2010 1:36:18 PM PDT by green iguana
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To: socialism_stinX
Malathir bin Mohamad beat George Soros by regulating the hold times in financial trades. It allowed the liquidity in currency transactions necessary facilitate trade but seriously curtailed the minute-to-minute trading with which the likes of Soros game the system.

IIRC, Soros lost over two billion trying to scam Malaysia. He got beat, and admitted it. We should do something similar.

36 posted on 08/25/2010 1:37:58 PM PDT by Carry_Okie (The environment is too complex and too important to manage by central planning.)
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To: unspun

It’s all “unexpected”.....


37 posted on 08/25/2010 1:40:07 PM PDT by AngelesCrestHighway
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To: socialism_stinX

Excellent post.

As always, there are two sides to any topic. Thanks for the clarity.


38 posted on 08/25/2010 1:44:17 PM PDT by A.Hun (Common sense is no longer common.)
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To: FReepaholic

The SEC is independent of the Administration anyway. Bush had no hand in this decision.

All that should have been said is that it happened in 2007.

http://www.sec.gov/about/whatwedo.shtml


39 posted on 08/25/2010 1:54:03 PM PDT by A.Hun (Common sense is no longer common.)
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To: Don Corleone

Agreed...


40 posted on 08/25/2010 2:06:19 PM PDT by DoughtyOne (UniTea! It's not Rs vs Ds you dimwits. It's Cs vs Ls. Cut the crap & lets build for success.)
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To: Frantzie

The market relies on the media and the media is rotten. Idiots.


41 posted on 08/25/2010 2:16:10 PM PDT by JudgemAll (Democrates Fed. job-security Whorocracy & hate:hypocrites must be gay like us or be tested/crucified)
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To: unspun

We need to make clear before the election how the economic collapse was engineered by the Democrats and their special interest controllers.


42 posted on 08/25/2010 2:22:36 PM PDT by kaehurowing
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To: green iguana
First one is easy. Obama got elected didn't he?

Second is easily confirmed with some easy reading on what lead up to the first TARP bailout.

43 posted on 08/25/2010 2:27:19 PM PDT by Bloody Sam Roberts (A fearless person cannot be controlled.)
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bttt


44 posted on 08/25/2010 2:39:18 PM PDT by ELS (Vivat Benedictus XVI!)
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To: unspun; Alamo-Girl; Amityschild; AngieGal; AnimalLover; Ann de IL; aposiopetic; aragorn; auggy; ...

END TIMES ETC. ECONOMIC PING


45 posted on 08/25/2010 2:55:18 PM PDT by Quix (C THE PLAN of the Bosses: http://www.freerepublic.com/focus/religion/2519352/posts?page=2#2)
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To: Quix

Thanks


46 posted on 08/25/2010 3:04:38 PM PDT by unkus
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To: socialism_stinX
The value of mortgage-back securities collapsed because home buyers did not pay their mortgages and caused defaults on the MBS.

A superb post. The fact that some investors made billions betting on these defaults doesn't change the basic facts. John Paulson was the big winner here. If you read Zuckerman's book about it, Paulson's researcher used computer analysis of mortgages to discern the coming implosion.

47 posted on 08/25/2010 3:14:04 PM PDT by nascarnation
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To: nascarnation; socialism_stinX
A superb post. The fact that some investors made billions betting on these defaults doesn't change the basic facts. John Paulson was the big winner here. If you read Zuckerman's book about it, Paulson's researcher used computer analysis of mortgages to discern the coming implosion.

Thanks for the info. I'm pretty sure he wasn't the only one. ;-`

48 posted on 08/25/2010 3:37:51 PM PDT by unspun (It's the Sovereignty, Stu... um... art. | WE ARE GULAG BOUND)
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To: FReepaholic
Actually some of the seeds can be traced all the way back to Carter. And I think Clinton was president when they repealed the Glass-Stegal act, and ramped up the CRA to allow more sub-prime loans.

The mark to market rule is a stupid rule. Just because you have not been able to sell a product, stock, or house does not mean it is worthless. A house for example has a replacement value that can easily be calculated. A company has a value too, just because someone drove down the price of the stock does not change the assets that are owned. There is still a “breakup” value to the company.

I have seen a stock go down to a few bucks one day and back up to $20 or $30 bucks in 1-3 days. It is ridiculous to say that the “true value” of the company actually changed that much during that time period, yet that is essentially the gist of the mark to market rule.

49 posted on 08/25/2010 3:56:02 PM PDT by greeneyes (Moderation in defense of your country is NO virtue. Let Freedom Ring.)
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To: Quix

Thanks for the ping!


50 posted on 08/25/2010 6:50:04 PM PDT by Alamo-Girl
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