happysoul77777

Obama and Cramer Now Bullish on Stocks

The stock market will continue to go down unless Congress addresses these issues:

1. Modify the FASB 157 (mark-to-market accounting rule) to allow financial institutions to spread losses over the average life of their investments, rather than taking losses immediately even though the losses may be due to lack of liquidity. (The modification will lessen the negative impact of the rule on banks’ capital, but still rigorously require banks to deal with potential losses.)

2. Prohibit FASB accountants, SEC staff that are responsible for formulating accounting and trading rules from investing in hedge funds, or engaging in any short selling activities (to safeguard the integrity of the market.)

3. Re-instate the uptick rule to prevent bear raids (to prevent piling on and to lessen volatility.) The repeal of the uptick rule allows the synchronization of futures, options and stocks and the focus of selling including short selling on a few leading stocks. The sharp declines in a few leading stocks will create fears and uncertainties, and hence affect the sector, and eventually the whole market.

4. Eliminate loopholes in the legislation that allows naked short selling.
(The market makers currently can create counterfeit shares (phantom shares) to sell short any stocks for two days before they have to deliver the borrowed shares or close out their short positions.) Those who want to sell short must borrow in advance.

Bears Take the Upper Hand, For Now

The market should keep going down until Congress do the following things:



1. Modify the FASB 157 (mark-to-market accounting rule) to allow financial institutions to spread losses over the average life of their investments, rather than taking losses immediately even though the losses may be due to lack of liquidity. (The modification will lessen the negative impact of the rule on banks’ capital, but still rigorously require banks to deal with potential losses.)

2. Prohibit FASB accountants, SEC staff that are responsible for formulating accounting and trading rules from investing in hedge funds, or engaging in any short selling activities (to safeguard the integrity of the market.)

3. Re-instate the uptick rule to prevent bear raids (to prevent piling on and to lessen volatility.) The repeal of the uptick rule allows the synchronization of futures, options and stocks and the focus of selling including short selling on a few leading stocks. The sharp declines in a few leading stocks will create fears and uncertainties, and hence affect the sector, and eventually the whole market.

4. Eliminate loopholes in the legislation that allows naked short selling.
(The market makers currently can create counterfeit shares (phantom shares) to sell short any stocks for two days before they have to deliver the borrowed shares or close out their short positions.) Those who want to sell short must borrow in advance.

Tim Geitner's plan of getting troubled assets out of banks is not going to work (because banks do not want to sell their troubled assets for fear of losing good blocks of investmnets that are producing great cash flows.) You heard it first from here.

What Will It Take for Faith in Financial Engineering to Wane?

Why do you guys keep looking at the symptons?
If you can get your Congressmen do the following things, I'll guarantee that the market will exploded in two weeks:

Please write or call your congressman or congresswoman to introduce legislation to:


1. Modify the FASB 157 (mark-to-market accounting rule) to allow financial institutions to spread losses over the average life of their investments, rather than taking losses immediately even though the losses may be due to lack of liquidity. (The modification will lessen the negative impact of the rule on banks’ capital, but still rigorously require banks to deal with potential losses.)

2. Prohibit FASB accountants, SEC staff that are responsible for formulating accounting and trading rules from investing in hedge funds, or engaging in any short selling activities (to safeguard the integrity of the market.)

3. Re-instate the uptick rule to prevent bear raids (to prevent piling on and to lessen volatility.) The repeal of the uptick rule allows the synchronization of futures, options and stocks and the focus of selling including short selling on a few leading stocks. The sharp declines in a few leading stocks will create fears and uncertainties, and hence affect the sector, and eventually the whole market.

4. Eliminate loopholes in the legislation that allows naked short selling.
(The market makers currently can create counterfeit shares (phantom shares) to sell short any stocks for two days before they have to deliver the borrowed shares or close out their short positions.) Those who want to sell short must borrow in advance.

Weekly Street Sentiment: Prepare for Another Leg Down

SELL! SELL! SELLLL!

The government officials don't understand the root causes of this market meltdown. Mr. OBAMAAAAA! Are you listening? It's the FASB 157, repeal of the uptick rule, and the unenforcement of naked short selling.

Active Traders Become Frustrated with Market

What do you mean? It's a great market to trade.

The FASB accountants favor the short sellers, therefore they continue to keep the FAS 157 in place. Keep shorting the financials and the market! That's the way to make money in this market.

Mark-to-Market Debate Continues

M2M is based on the assumption that the market value is a reflection of fair value and free from distortion. But in reality, the market value can be manipulated by powerful players. The market value can also fluctuate wildly because of changes in the regulatory environment. It is useless concept for the preparers of financial statments,because M2M ignores the intent and ability to hold until maturity. The users of financial statements will find also not much better transparency, but instead more confusions and uncertainties.

The FASB accountants need to have their heads examined for lack of common sense. They also need to be banned from shorting or investing in hedge funds (to avoid conflict of interest) , because the hedge funds really want to keep this rule in place to wipe out banks' capital and to drive the stock market down!

Now Isn't the Time for Defensive Stocks - UBS

Why bother to be aggressive? The market is structurally broken and unsound. The repeal of the uptick rule, CDS, naked short selling, leveraged inverse ETFs have given the seller all the fire power. SELL!!!

Two Unwarranted Investment Fears

I have a deep-seated fear. My fear is that the stock market is structurally broken. Sellers have more tools than buyers. As a result, the market can never rally successfully.

Where Have All the Value Investments Gone?

The economists, accountants, strategists, and regulators need to step outsied of the box and think!

The destruction of wealth and value was caused by the FASB 157 (Fair Value accounting rule, naked short selling, repeal of the uptick rule, uncontrolled derivatives (CDS, leveraged ETFs). Sub-prime loan was the catalyst, but the above-mentioned sustaning factors have caused serious problems around the world.

Credit Where Credit Is Due

PS has no credibility. His arguments are mostly irrational.

Just imagine the world where consumers cannot buy houses,cars, TVs, etc. using credit.

Does anybody like to live in Russia? They use little credit!

Fast Money Recap: 100 Trades for 100 Days (1/13/09)

Why bother buying any stock? The market is structurally unsound and broken. Most of the rules are on the shorts' side. KEEP SELLING!

VIX Tops 50 for First Time Since Mid-December

Vix started to rise when some people start to short financials and take them down. I wonder if VIX can be manipulated.

Obama's TARP 2 Signals an End to Mark to Market

I doubt that mark to market accounting will get tossed. But, iif Obama suspebd it, financials will rally big.

The SEC and FASB accountants are ideologs. They lack common sense.
Millions of jobs are lost, and trillions of taxpayers' money are thrown away because of these people!

Totally Disconnected: US Government Risk, Ratings, Bonds and Equities

Forget about the fundamentals. Technicals now rule!

People should short the SP500 until the government (the SEC) realizes that the market is structurally unsound. The allowance of naked short sales and the repeal of the uptick rule have sealed the fate of the stock market fourteen months ago.

Markets Are Perched on a Precipice

it's obvious! The market is structurally unsound and broken.