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Could the government and the Federal Reserve Bank possibly stoop so low as to merely take away traders ability to short.. anything?
Remember 2008?
(Click link for full story on the SEC website)
SEC Halts Short Selling of Financial Stocks to Protect Investors and Markets
Washington, D.C., Sept. 19, 2008 — The Securities and Exchange Commission, acting in concert with the U.K. Financial Services Authority, took temporary emergency action to prohibit short selling in financial companies to protect the integrity and quality of the securities market and strengthen investor confidence. The U.K. FSA took similar action yesterday.
(Click link for full story)
Remember FASB and Mark to Fantasy Accounting?
# FASB is ‘easing’ the Mark to Market rule to essentially allow all these insolvent banks to price all their toxic assets at whatever price they view as proper, ie Mark to Fantasy. This is seriously bad news for transparency and accountability.
# Suppose a bank buys an asset which cost US$1 B a year ago and the price of similar/same asset goes down to US$100M currently. In fair value accounting using mark to market principle, the asset bought at US$ 1B should be priced at US$ 100M in the books. This means that this bank has suffered a US$ 900M paper loss and the balance sheet, profit and loss statement must reflect it as such.
# But in allowing banks to escape from this mark to market rule, banks can price toxic assets at whatever. How then can you trust their financial statements? How then do you assess whether they are adequately capitalize or otherwise?
# It is bad enough that alot of these toxic derivatives are placed under off balance sheet items to hide them. Now with this rule change, it is almost as good as legalizing fraud. America is going from bad to worse. These banksters and their cronies are taking over the country big time. They are sending America down the road to 3rd world country status with dubious rules and regulations.
04/17/09 - Accounting Rule: Mark to Market, Mark to Reality, or Mark to Fantasy
And here is pretty much how I feel about the whole mess..
The Economy Cannot Recover Until the Big Banks Are Broken Up
However, as we can all plainly see, the government of the United States and the Federal Reserve Bank intend to do anything and everything to prop up this ponzi economy apparently forever.. They accomplish this with the tricks mentioned above. Banning short sales, changing accepted established accounting rules.
Another trick I have noticed myself.. If something they want or need to do happens to be illegal they merely either change the existing law or write a new law to make the illegal legal.. Presto!
They being the government of the United States of America and the Federal Reserve Bank along with the Primary Dealers.
Also see this..
Scary stuff! Beyond foolishness…..INSANITY!
Add to all this the fact that Ben Bernanke is now openly bragging about the stock market manipulation being carried out by the Federal Reserve Bank and their cohorts the Primary Dealers..
This ponzi scheme, it seems to me, works something like
The Federal Reserve Bank prints money out of thin air and loans it to the Primary Dealers at zero percent interest.
The Primary Dealers then use this free money to drive the stock market higher, especially the price of commodities as we have seen.
This seems to be the perfect solution to the threat of deflation which is what the Federal Reserve Bank fears the most. As in this manner the FED, via Primary Dealer cooperation / collusion can greatly inflate the equity market and all risky assets while at the same time have the cover of LOW inflation in their manipulated statistics. They are able to report low inflation and announce that the FEDs 'mandate' is now to INCREASE inflation because the TRILLIONS of dollars the FED has printed out of thin air has never entered the real economy of the United States. It was never INTENDED to enter the real economy.. The intention all along was to prop up the TBTF banks while leveraging them up sufficiently to make huge profits by manipulating markets while trading them.
Hell.. I could go on and on forever I suppose.. But the point I'm trying to make is that NOTHING is real anymore.. A fair and free market does not exist in the USA, if it ever has.. Our banks are zombies just like the Japanese banks. Our economy is propped up by nothing more than government spending and massive debt levels..
Ask yourself where would we be without spending 100s of billions of taxpayer dollars on wars around the world? Where would we be without extended unemployment for the last two years? Where would we be had food stamp accessability not been extended to 43 million Americans?
It is my own opinion that our economy and markets, and indeed the American people themselves, are DEMANDING deflation, likely accompanied by a depression like none we have ever seen, to lower prices for everyone across the board.. To clean out the fraud and greed that has taken over our entire country in the name of 'saving the economy'.
Bullshit
So, the Federal Reserve Bank and the Primary Dealers have NOT been able to effectively lure retail investors back into the rigged gulag casino stock markets and neither have they been able to force market shorts to capitulate even though they have been unmercifully squeezed for more than two years now. So what IS the next step? I predict at some point it may be the elimination of the ability of the general public to short stocks of any kind.
I certainly hope I am wrong..
Welcome to the matrix.. I hope you are enjoying it..
Greg
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