There is an interesting analogy when J.P. Morgan invited
Jesse
Livermore
to a private meeting; circa 1907. He asked to infamous
trader
to stop naked short
selling. The other measures Morgan then put into place
were credited
for saving the economy. Or so the story goes. Now you
have Paulson
and Bernake (now J.P. Morgan) telling the hedge funds
(Jesse Livermore)
that it is OK to sell naked short. That's how they
were
able to manipulate
prices down. So the story goes, Moran's
measures would
not have worked
had Livermore not agreed to stop naked
short selling.
Fraud is rampant
and people should be going to jail and
instead are bailed
out. The only
'moral hazard' was when the banking
cartel was instigated
by the FRA
of
1913.
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