The casino that's called Wall Street is now rigged by the Federal government. It used to be only rigged by big financial institutions. American capitalism is under attack by its own incompetency and knee jerk reactions. The SEC bans short selling.... It's time for the Chinese government to step in and buy up all the failed or failing financial institutions. Wall Street then will be called The China Great Wall Street. I think it might actually be happening as Morgan Stanley is seeking some fund from China to shore up its capital.
German bank KfW transferred $300 million euros to Lehman the same day it declared bankruptcy. There will be resignations and dismissals. At least Europeans over there know what accountability is, over here it just means more bonuses.
Governor Palin prefers Yahoo! e-mails to government e-mails.
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LG just up the ante by introducing its own touch screen cellphone a week after Apple made the iPhone announcement. The PRADA phone is a col...
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New York City is falling apart .... Buildings are collapsing , the financial market is in a tailspin and the dollar is not the dollar it us...
spend your money in D700 is more meaningful, I care about my money too, but please write something that are more excited
ReplyDeleteThe Irish financial regulator just banned short-selling too. Actually I think it's about time that this practice is banned because there was a similar loss of confidence in a major mortgage/retail bank behemoth (HBOS) in the UK whose financial position was solid but whose stock price was driven down by more than half in one day due to speculators betting against it, and resulting in its takeover by a smaller rival which resulted in the biggest bank the UK has ever seen, raising concerns about its future monopolistic power.
ReplyDeleteAnd if I remember correctly the Asian financial crisis was also driven by short-selling, only that at that time the speculators were betting whole countries' currencies to fail rather than gigantic financial institutions. In both cases you could say that there were some legitimate concerns with the fundamentals of the economies / institutions but allowing people to profit on pure speculation that someone may fail (with the speculation itself feeding into a self-fulfilling prophesy of failure) is just pure avarice. So giving greeding speculators one less excuse to make out like bandits at others' misfortune and misery could only be a good thing.
I think short-selling is an important way to hedge in a mature financial market. There is nothing wrong with it per se. Anyway, I really love the day when John Mack has to cash his bonuses in RMB. At present, the highest denomination for RMB is 100. I think that has to change.
ReplyDeleteVincent