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  • Peak Insanity: SEC Plans to Temporarily Ban Short-Selling [View article]
    ANATOMY OF A COLLAPSE:
    *The COMMUNITY INVESTMENT ACT, well intended, created the Sub-prime mess, helped along by the GREEDY money changers;
    *SARBANES/OXLEY, an over reaction to Enron/Worldcom, incorporated a provision that Officers/Directors are "personnaly" liable for financial misstatement;
    *FASB 157 created the MARKED-TO-MARKET provision which along with SARBOX "rapidly accelerated" markdowns of financial companies Balance Sheets and P&L's;
    *The SEC greased the skids by "eliminating" the UPTICK RULE and "allowing" ILLEGAL NAKED SHORT SELLING;

    SOLUTION THAT COULD HAVE SAVED TRILLIONS............
    [1] SUSPEND the SARBOX "personal liability + FASB157 for 12 months while much of these subprimes were worked out and/or properly valued;
    [2] REINSTITUTE the UPTICK RULE + prosecute NAKED SHORT SELLERS.

    I'm not convinced that certain people didn't want this financial collapse to occur. One, THEY benefitted enormously on the way down. Secondly, THEY are ready-and-willing to BUY these assets for pennies on the dollar. And lastly, the financial system is now UNDER the CONTROL of a FEW POWERFUL INSTITUTIONS!!!!!!!!

    IMHO
    Sep 19 09:01 am |Rating: 0 0
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