Financial Expert Warns of Economic Collapse ( explains what happened in 2008 - hedge funds)

Accuracy In The Media ^ | 8-25-2010 | Cliff Kincaid

[Frantzie]

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.

[Frantzie]

This may have been posted. Zubi Diamond explains what happened in the late Summer of 2008. What is really creepy is I could have written this. Diamond comes to all the same conclusions I came to. The whole thing was engineered by the short hedge funds for Obama. The public has no clue. The whole thing was a setup. It is worth reading.

This and the whole dot bomb manipulation in 1999 where the biggest fleeces of citizens. The public was fleeced.

[misterrob]

Please don’t post stuff like this. You are embarrassing yourself.

The market imploded due to long term and systemic over leveraging at all levels of the private and public sector that was ignored by too many people and papered over by corrupt ratings agencies and broker dealers selling crap to often times ignorant or naive investors.

[Frantzie]

No you are embarassing yourself. The CDS market, the hdge funds turning on Morgan and Goldman who begged to Paulson. You have no clue. It goes further back to CRAs and Fannie and Freddie but it was a setup with Raham and Gorelnick and Fann and Fred. The couple at World Savings, Stan O’Neil and the list goes on and on. Cong Black Caucus blocking any oversight.

Keep aceepting the MSM/Sdaui media story.

[DB]

“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.”

Gee it couldn’t have anything to do with a massive increase in capital gains taxes, etc., next year...

[genghis]

government is always the problem
and never the solution
good advice

[misterrob]

I take my analysis from Karl Denninger who has examined this issue inside out and upside down.

1) Commodities Modernization Act-> Unregulated derivatives

2) Graham Leach Bliley ——————> Removed Great Depression era banking rules designed to keep depositor money out of speculation

3) CRA

4) Congress eliminating leverage limits in 2004

5) Fed keeping interest rates low for years and blowing a real estate bubble

6) NINJA and Liar Loans

7) AIG writing CDS with no money to cover

8) People buying houses they couldn’t afford and then refinancing again and again to spend more money.........

9) Deficit spending every year by the Feds accruing interest on top of interest and hiding private sector GDP

etc, etc

[misterrob]

Or how about the expectation that the market is going to tank?

[BigBobber]

Have any of you read Diamond's book Wizards of Wall Street?

Can you recommend it?

[StopObama2012]

Exactly. It also couldn’t have anything to do with the horrific costs of ObamaCare that were being threatened for a year, then finally rammed thru Congress. That scared the Christ out of anybody looking to invest in US corporations via stock or otherwise.

[PetroniusMaximus]

We knew it was going to be a setup when Chuck Schumer began talking down IndyMac Bank and caused a run on it.

[Frantzie]

I think I read it a long time ago. There was an old one and updated one. It was okay if it is the old one. One of the best traders ever was Ed Seykota and I think he interviewed him in the first book.

http://en.wikipedia.org/wiki/Ed_Seykota

Ed is/was NOT a malicious short hedge fund creep like Soros. Think of the Michael Jordan of trading then multiply by 10X. Not a creep like Buffett either.

[Frantzie]

Bingo! And it was worse that that.

About a year later: Soros, John Paulson (no relation), JC Flowers and Michael Dell “bought” Indy Mac.

http://www.newsvine.com/_news/2009/01/02/2267068-flowers-soros-michael-dell-team-to-buy-indymac

I wonder how many billions in tax losss carry forwards they got plus got money. Pretty neat - wipeout a company then buy it back for nothing.

[Niuhuru]

It’s not just hedge funds. People lived on loans and credit and if not for that, then a lot of people would not be in this mess. Furthermore, if people only paid attention as to how celebrities have gone bankrupt, they would have avoided making the same mistakes. Investing your life’s savings in the stock market is also stupid since stock markets are about gambling, not entirely investing.