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