SEC votes 3-2 for a worthless short-sale curb

Forgive me if I don’t raise my glass in honor of the SEC. The only parties in the mood to celebrate this pathetic rule change are the very same miscreants who’ve been behind some of the most merciless short-selling raids enabled by a captured regulator (The SEC).

SEC Chairman Mary Shapiro (Getty Images)

Rant Warning: I only hope the objecting 2 Commissioners voted “no” due to the pathetic, watered-down, virtually worthless version of short-selling curbs that were put into effect today. The CEOs of major broker-dealers and investment banks, that were under short-sellers’ siege in Sept 2008, raced into the SEC’s offices* with politicians tow …. They demanded a meeting with then SEC Chairman Cox and screamed “do something! Stop this gratuitous pound-down short selling!” Finally the Brits (who had balls) temporarily banned short-selling on financials and the SEC and other global market authorities followed the Brits’ lead. The banks and BDs soon thereafter got their bailouts (and seven-figure exec bonuses), and the merciless short-selling abated …. But these f***ing financial firms were too addicted to the massive commission revenues and margin fees generated by the  f***ing scumbag hedge funds and institutional short-sellers … so they backed-off on their insistence that the SEC do anything substantive to stop the abusive (in some cases criminal) short-selling and fails-to-deliver (FTDs).

The SEC has totally failed on their mission statement … to facilitate free/fair markets and to protect real actual “investors” …. That’s “investors” not whip-saw short selling hedge funds and not high-speed, fundamentals be damned, program trading quants.

*Secret Sept 2008 Meeting with SEC : “Citing un-named sources, the SEC is this afternoon holding a meeting to ‘determine if they need to take further steps to curtail what both Mac and [Goldman Sachs CEO Lloyd] Blankfein characterize as improper short selling that is really causing damage to the share price of Morgan Stanley and Goldman Sachs.’ Blankfein also spoke with Cox to complain of short selling of their stock, as did New York senators Chuck Schumer and Hillary Clinton.” > link

Photo above right – L to R – Dodd, Schumer, Bernanke and Cox
Photo below – L to R – Blankfein, Diamond, and Mack

L to R Blankfein, Diamond, Mack


Goldman Sachs bonuses

Doonesbury – by Gary Trudeau

High Frequency Trading = The rise of the machines … And the SEC does nothing

Examining high frequency trading … An excerpt from > There’s millions in those milliseconds:

“Look,” says Sergei Tchetvertnykh, pointing at a flashing spreadsheet on his desktop’s screen. “I just made $82,000 in one second.” …

The high-frequency traders’ supercharged computers haven’t blown up markets—yet—but Caldwell says they have blown up individual stocks. Exhibit A: the investment bank Bear Stearns, which folded after its share price plummeted in March, 2008, even though then-SEC chairman Christopher Cox assured the markets that the firm was sound. “Bear Stearns did not commit suicide,” says Caldwell. “It was murdered.”

Jon Stewart understands the game … why can’t the SEC? (watch video):

Is it time for Robin Hood Economics?

Note: post is authored by obxfun at AAPLSanity message board

First, out of deference for the rule of no politics, my intent in this post isn’t political.
Haves are democrats, republicans, libertarians, socialists, liberals and conservatives.
Have-nots are democrats, republicans, libertarians, socialists, liberals and conservatives.

Funny thing about this almost depression recession: the haves aren’t hurting anywhere near as much as the have-nots are hurting. As a matter of fact, the haves don’t seem to be hurting at all. A few observations:

  1. The haves really caused this debacle by developing reckless schemes to get even richer.
  2. These schemes included predatory lending practices to dupe the have-nots into taking chances to reach the American dream.
  3. These schemes also included predatory trading practices to dupe the have-nots and less well off haves out of their hard earned investment and retirement money.
  4. When the house of cards finally came tumbling down, the taxpayers, made up mostly of haves-nots, bailed out the haves and the mess they had created.
  5. Many of the haves continues to pay themselves richly through bonuses and compensation packages that, while less than before, would support the families of thousands of have-nots.
  6. The haves got charged interest rates on their bailout money that were somewhere between 3.5 and 4%.
  7. The have-nots are now being told by the haves that they have to pay the haves loan shark rates to the tune of 20-40%.
  8. In order to survive, many of the haves laid off many of the have-nots and our unemployment rate is approaching 11%.
  9. The haves are reporting quite impressive profits and bonuses for their have leaders. They have learned that they can run their businesses and still be profitable when they get leaner and meaner.
  10. This is a jobless recovery and I don’t see that this will change unless and until the have-nots get so frustrated at the unfairness of the economic playing field that they do something quite scary and make the haves shit in their pants.

Very rich haves go on TV and debate about how the government should or should not get involved in helping the have-nots get jobs. They argue that we’ve spent too much already. Isn’t it ironic that the “too much” was spent on them?

Perhaps I’m taking my honorary nickname here in AAPLot too seriously, but this scenario really sucks. The rich ARE getting richer despite the fact that they are incredibly stupid and the poor are getting poorer despite the fact that they try just as hard, if not harder, than the rich.
I know I have over-simplified this, but we really need more George Baileys in this world.

This is a social commentary. No politics intended. What’s the right thing to do?

Tipping Point for Western World

Airtime: Mon. Oct. 5 2009 | 6:00 DT ET
Debating whether the West is falling, with Andrew Busch, BMO global FX strategist; Peter Navarro, UC-Irvine professor; and CNBC’s Mark Haines.

It was 20 years ago today …

20 years ago today (June 4, 1989) One unknown man changed the world

Documentary: The Tank Man about Tiananmen square protests of 1989 in Beijing China. 纪念六四,勿忘历史

Hedge funds laughing all the way to the bank

Short selling hedge funds lit the spark that led to the global economic meltdown

03969001Now they want to help craft the laws Congress will pass to fix our broken regulatory system. That’s insane. Don’t just stand there, do something! … Write or call your Congressperson!

Video is MUST SEE > Hedge Funds and the Global Economic Meltdown from Judd Bagley on Vimeo.