Dear Aaaaaaum Writes to us
aaaaaaum said...
MarketWatch is enumerating 11 reasons America's a new sopitalist economy
7/21/2008 8:06 PM
Yes, Dear A, thanks for posting this for our interest. Dear Writer of the article Dear Paul, could use the word SOPITALISM , as it could save him hours , incorrectly comparing USA economic state to SOCIALISM. We know it is not. It is a SOPITALISM. Let us hope somebody tells them. Let us hope that he will, in time, understand the true nature of SOPITALISM. It is international in its origins and is directly connected to the CENTRAL BANKING and MULTINATIONAL companies. GOVERNMENTS are main puppets for these guys/girls and the WALL STREET is just a convenient machine that greases the transfer from poor to rich. all together this constitutes the WELFARE STATE OF SOPITALISM.
It is so welcome though!
3 comments:
This one is a must hear: The Greatest Crime in History by Bud Burrell.
Now I'm afraid to invest in stocks! Is forex beyond their reach?
From a financial newsletter I subscribe to:
How would the government engineer a rally in financial stocks so that financial companies can sell stock to raise capital at a reasonable or at least palatable dilution level?
It might go something like this. Since financial stocks are in such trouble, they have heavy short interest; this is natural and well known and can be used to their advantage. A clever “berry” might think to introduce confusing rules that raise the cost of borrowing short stock and temporarily confuse shorts into covering and not shorting more. And this is precisely what the SEC did.
It seems innocuous to most folks, but it put stock loan desks and dealers in complete disarray. New short sellers could find no stock to borrow and many existing short sellers were forced to cover as the technical rules forced allocation of loans at much higher costs.
For example, the rebate rate on Fannie Mae (FNM) the day before the SEC announcement was 1%; the day after it was -5%. Many who were short the stock were forced to cover, thus driving the stock price up.
But this alone would only drive stock prices up so much. The clever berry needs a catalyst, one that would force panic buying into now truncated supply.
It just so happened that the new SEC rules came conveniently the day before many of these financial companies were to report earnings. If just somehow these earnings were really good, the match would be lit on the kindling.
So far banks have miraculously come through on their end of things. Wells Fargo (WFC) and JPMorgan (JPM) reported better-than-expected beaten-down earnings. Things must be getting better just as the companies need capital.
What a coincidence.
Dear Hopper,
excellent ...
Very good ideas!(:-
Good Trading
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