happysoul77777's Comments

Obama and Cramer Now Bullish on Stocks

Thu, 05 Mar 2009 15:52:05 -0500

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

Mon, 02 Mar 2009 18:26:53 -0500

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?

Mon, 02 Mar 2009 18:20:07 -0500

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

Mon, 23 Feb 2009 18:06:28 -0500

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

Fri, 20 Feb 2009 00:57:54 -0500

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

Sun, 15 Feb 2009 21:17:37 -0500

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

Sat, 31 Jan 2009 11:55:04 -0500

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

Thu, 22 Jan 2009 18:06:45 -0500

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?

Sun, 18 Jan 2009 21:24:28 -0500

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

Sun, 18 Jan 2009 21:12:10 -0500

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)

Wed, 14 Jan 2009 16:57:39 -0500

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

Wed, 14 Jan 2009 16:49:46 -0500

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

Wed, 14 Jan 2009 14:10:13 -0500

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

Wed, 14 Jan 2009 12:31:33 -0500

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

Mon, 12 Jan 2009 17:52:27 -0500

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

Margin Debt Down 37.6%; Is The End of Selling Near?

Mon, 12 Jan 2009 17:46:51 -0500

The end of the selling will never be near. The market is structurally broken! STRUCTURALLY UNSOUND AND BROKEN! The sellers can still naked-short and pile on thanks to the repeal of the uptick rule.

80% of S&P 500 Stocks Above 50-Day Moving Averages

Wed, 07 Jan 2009 16:53:53 -0500

What does that mean? An overbought situation or a more powerful rally ahead?

SEC's Meagan Chung Pleads Innocent

Wed, 07 Jan 2009 16:49:05 -0500

She sounded incompetent. Any auditor worth of any salt should have detected this fraud!

The true problem is that the SEC has been in bed with the market makers, brokers and dealers. Their judgements have been clouded.

Time to Venture Out of the Cave?

Wed, 07 Jan 2009 16:45:58 -0500

Not yet. The short sellers can sell short naked for two days, and the uptick rule has not been reinstated yet.

Obama Doubles Down

Wed, 07 Jan 2009 16:42:50 -0500

Investing 401k money in the stock market is a fine idea, as long as the SEC is not going to come up rules to help the market makers to destroy the market.

The repeal of the uptick rule and the approval of naked short selling (for two days) has helped to decimate many institutions.

Fund Managers to Fight Short Selling Disclosure Rules

Wed, 07 Jan 2009 16:39:00 -0500

The mutual funds are required to report their long postions. Hedge funds should be required to do the same.

The reporting should help reduce naked short selling. It will help restore confidence to the market.

Is the Fed Driving Down the Dollar to Boost Inflation?

Thu, 18 Dec 2008 17:36:41 -0500

It's so obvious...they are to re-inflate to fight deflation!

Fast Money Recap - Has Ben Gone Nuts? (12/17/08)

Thu, 18 Dec 2008 12:56:55 -0500

Fast Money traders are good at making money selling short. Certainly, they don't like the measures that will be successful to turn the economy around.

When Ben is trying to say, "Investors, take risks, you'll be paid nothing if you hide in money market funds." In addition, low interest rates will spur housing activities to help counteract the tightening lending requirements.
It will help banks to replenish capital quickly, and eventually will help banks to relax their lending standards.

Ben still needs the securitization of car, credit card, student loans and private-label mortgages.

The SEC also needs to take away the tools that short sellers can kill any stock at will by re-instating the uptick rule, banning naked short-sales completely (no two-day grace period.)

The FASB accounts also need to modify the FAS 157 and other accounting rules to help the preparers to manage their assets effectively and at the same time requiring them to disclose more exit prices about their assets without endangering their own companies. The financial institutions then would be more aggressive in making loans.

America's Own Lost Decade

Thu, 18 Dec 2008 12:42:31 -0500

You don't have a clue. Bernanke is doing whatever he can to corret the problem. This is the only correct way to avoid a depression.

It was the change in the accounting rule (FAS 157), the repeal of the uptick rule, unregulated CDS, and the condonement of naked short selling that brought the financial markets down. It is incredible when smart people cannot see the root causes of this meltdown and deal with them directly. People are running around with the heads cut off!

<
It's hard to have much faith when the government's solutions are likely to make things worse, and the key weapons in their arsenal are taking on more debt, printing money and attempting to deflate their way to an economic recovery. Considering that we live in a time when our Congress is berating undercapitalized banks for not increasing their lending volume, it goes without saying that our policy makers may actually be a bigger problem than the systemic issues that created the crisis in the first place.>>

Obama's Choice for SEC Chief: 'Strong Investor Advocate' Schapiro

Thu, 18 Dec 2008 12:01:30 -0500

She appears to have protected investors from bad sales practices, but can she protect investors from the greedy, abusive market makers? These market makers can continue to naked-short stocks for two days and bear-raid stocks without the uptick rule!

It's Time to Outlaw Hedge Funds

Thu, 18 Dec 2008 11:56:17 -0500

All large financial institutions including hedge funds need to be regulated to provide further transparency, protection of investors confidence, and control over systemic risks.

What Corporate Yield Spreads Are Telling Us About Equities

Thu, 18 Dec 2008 11:44:26 -0500

CDS spreads are being manipulated by market makers. Because, the market makers know as a group, they can gang up and kill any company at any time using the current tools: repeal of the uptick rule, free two-day naked shorting, widening CDS spreads, unlimited shorting via ETFs, options, futures and synchronization of attacks througn multiple exchanges, gaining fire power around the world by creating rising volatility!

Paulson's Plan Fails to Understand the Problem; Madoff Is a Perfect Example

Mon, 15 Dec 2008 15:18:32 -0500

I've lost confidence in Paulson and Bernanke. The solution is right in front of them, but they still don't do it.

Everybody knows that FASB 157 is dangerous and pro-cylical. Banks and other consumer finance companies do not want to sell their loans because the spread is wide. The spread is wide, because of credit uncertainties and forced liquidations or write-downs because of FASB 157. It's a vicious circle.

The FASB accountants can easily suspend FAS 157 and come up with new accounting rule to mark-to-market every single items on and off balance sheets for information purposes and liquidity purposes. That will provide transparency as investors demand it without destroying regulatory capital of all financial institutions.

Without FAS 157, securitization will return to normalcy, and banks will make loans again.

Bernanke and Paulson made a huge mistake allowing Lehman fail. That was why the global financial system imploded. Now, these people lack skills and foresight by supporting FAS 157. The results show!

Our Economic Crisis: The Grand Experiment

Mon, 15 Dec 2008 12:38:27 -0500

Other disatrous experiments you failed to comment on: FASB 157, the repeal of the uptick rule, the allowed naked shorting by market makers, and the leveraged ETFS.

Has a Market Reversal Happened?

Mon, 15 Dec 2008 11:51:14 -0500

The article would be much better if the author provided with hard statistics.