Letter to the SEC from an Independent Trader

[The following is excerpted from Bill Cara's Daily Report]

There will be a groundswell of anger from independent traders that our right to a free capital market has been seized by the Treasury Secretary, the Federal Reserve Bank Chairman, and the SEC Chairman. This open letter was sent out Friday to the SEC by one of the members of this community. I endorse it without qualification.

Legislators have got to understand the path these others are taking the nation. The need for an investigation is urgent.

Date: September, 19, 2008

Securities & Exchange Commission
Office of the Chairman
Washington, DC 

RE: Market Restrictions

Dear Sir,

As a longtime participant in the world of business and entrepreneurship as well as being involved in numerous ways in the stock market here in the U.S., I would like to make known my extreme displeasure of your rules regarding the shorting of financial brokers and banks. I understand the issue with 'naked shorting', as the practice is known to be very harmful to the true and honest function of markets. However, the restricting of investors freedom to react to market conditions, be they good or bad is a form of socialism that should be shunned with vigor, not embraced by a regulatory body. How silly it is for a regulator to essentially say; "We only want 'bullish' market participants". Your agency, with this regulation has just destroyed the market you are given the responsibility to oversee. How is the market supposed to 'punish' mismanagement and dereliction of fiduciary duties of these companies? The companies that I am shorting are guilty of gross mismanagement and greed. Management has been very eager to take massive bonuses and stock options at the detriment of shareholders and depositors, as they leverage the assets of their company to make out sized profits for the next quarter....never looking to the long term health of the company or their shareholders.

The very people and companies you are now protecting are some of the worst violators of your longstanding rules regarding naked shorting. They have made billions of dollars shorting good, well managed companies. They care not who they hurt or destroy, now, when the 'shoe is on the other foot' they come crying for 'protection'. How disgusting and unfair. The SEC will ultimately be viewed as a protector of criminal behavior and those in responsible positions in your agency who make these decisions will be targets of unending investigations, lawsuits and career ending loss of credibility and reputation.

Please end these restrictions and let the 'market' take care of misdeeds and malfeasance, don't be guilty of aiding and abetting the enemy.

Best regards,

E.O.Barlow

cc:
Wall Street Journal
Salt Lake Tribune
USA Today
Senator, Orin Hatch
Senator, Robert Bennett
Office of Investor Education and Advocacy
Kristin J. Kaepplein, Director
Bill Cara

Comments

[debtacid:]

I wonder if those potted plants at the supreme court will have anything to say about this assault on the Constitution.

2008 Sep 21 12:01 PM

[John C. Lee:]

I second this letter

2008 Sep 21 12:52 PM

[Xantippa:]

Please Mr. Barlow. Send your letter to those naked shortsellers. They have ruined your businesses.

2008 Sep 21 01:11 PM

[goldfinger10:]

I've found the following letter on a german forum and think it's fit to post a translation here. Please excuse my english !
----------------------...
Ministery of Truth
Stalin Alley 1
Washington, D.C.
URGENT !

Comrades !

Just now the great People's Congress of the Union of Socialist American States has ordered the

continuation of the golden Age and the termination of the credit crunch that did not really exist

anyway and was caused by irresponsible antisocial parasites. In cooperation with Great Soviet

Britain our beloved Führer George W. Breshnievkush issues the following commands to be executed

at once by the staff for the good of our historic mission for the healing of the world:

- selling of shares of people's banks in Wall Street is forbidden in any form or shape because these

banks are safe and healthy !

- selling of shares of people's banks in the City of London is forbidden in any form or shape because

these banks are safe and healthy !

- Our healthy and safe banks are so safe, that we entrust them with billions and billions that they

will manage safely for our common good.

- Antisocial parasites that have sold shares up to now will be punished justly by the friends of people

for our common good.

- Comrade Charles Berja Schumer is instructed to create a federal authority for nationalisation,

collectivation and unlimited welfare.

- the free, democratic economy of the people is instructed, after publication of this resolution by the

free press of the USAS, to produce a 4%-rallye within 1 hour, to ignore dissenting bloggers and

report their activities to the Ministry of Truth.

- Eyerything is alright! There is no crisis! Democracy schtonk! Liberty schtonk! Free Sprecken

schtonk! Wall Street is always right!

donalphons, 22:37h rebellmarkt.blogger.de.../ *** translated by Goldfinger
----------------------...
This is really mad, Mr. Paulson as former CEO of Goldman should know better.
The only explanation is panic.

2008 Sep 21 03:20 PM