James Davis

Bank of America / Merrill: Shotgun Marriage

Here's hoping that a few shorts get put out of business by this absurd deal. I doubt it though

Retail Investors Stuck Holding Auction Rate Securities

As I've stated, there was a conspiracy to

1) Create the illusion of a liquid and fair market, where in fact it was a manipulated , contrived one.

2) Pull support simultaneously, so that no one dealer got stuck holding the bag. Better for the customers to have that privilege.

As for the boilerplate in the 'prospectii' as one poster puts it, no one would buy anything ,ever, if every disclaimer was taken at face value.

Since the dealers so willingly maintained the illusion of liquidity and soundness, let them stand behind their Houdini act for the final bow.

That or face permanent reputational damage for at least a generation.

Retail Investors Stuck Holding Auction Rate Securities

Full disclosure: I own 1 of these ARS

There's no question this was , in its final days, a fraudulent market, and a criminal enterprise hosted by the large brokers.

They allowed and encouraged their 'henchmen' aka sales force, to foist these time bombs on unsuspecting customers.

The brokers knew full well these were GUARANTEED to fail, since they were the ones that were about to LET THEM FAIL.

Need to be handled at the criminal level if they refuse to make victims whole.