I admit that I have not seen anything quite like what is going on
before. I've been at this for about 37 years and I've seen a few bear
markets but never the destruction of one firm after another after
another. I am fairly well convinced that hedge funds are working
together and taking these financial firms apart. They know that if they
drop the share price significantly, the firm will be forced to raise capital
which they can only do to a point and then, it's end game. Mean while,
they have shorted the hell out of the stock and walk off with a big bonus
while the share holders, employees and associated businesses are left with
nothing.
I think that enforcing the naked short rule will help this situation and
it may help it a lot. We should put the uptick rule back in place
too. Speaking of hedge funds, it's way past time they were caused to be
transparent. If not for the good of those who have invested in the
funds, then for the good of the investment community as a whole.
Last, as expected, we are now seeing forecasts of total gloom and doom
and today, gold rose $80 an oz and 2 month bills had a negative return.
If that isn't capitulation, there is no such thing. The enforcement on
naked shorting kicks in tomorrow ... capitulation was today .. Thursday will
be very interesting.
Bob