Saturday, February 22, 2014

SEC regulations facilitate hiding of hedge fund violations and manipulations


As if being taken over by hedge funds is not enough protection in itself, some regulations the SEC makes also allow hiding hedge funds activities and give better excuse in not discovering what, where and how they violate other laws and regulations and manipulate stocks in comparison with individual investors.  I spoke about this in a previous post. Based on my understanding the SEC requires ordinary people to file with it any ownership of more than 5 percent (Schedule 13D or equivalent) of any stock within 10 days of obtaining that ownership. If you are a hedge fund ,on the other hand, this requirement does not apply to you. Instead you can get in and out obtaining less than 10 percent ownership of all the stocks you want and you only would have to file if your ownership of that stock at the last  day of the year is above 5 percent.      
Living here and believing  the  SEC  is a real valid functioning entity for what it was created for, is like living in Russia and really believing you have a democratic system. 

Friday, February 14, 2014

No refuge from the corruption here


Even for general basic needs, there is no refuge from the corruption I see here. The hedge fund guy watches everything I do on my computers and has viruses messing things up for me and causing malfunctions. Basic functionalities on my Google's blogs are not all available to me and may not apply despite being selected.


But most importantly is that I have my password settings requiring two step verifications through password in addition to a phone call giving a random number required for logging in and I still get messages from Google that I was logged out from other locations.
I changed the phone to which these numbers are sent from voice calls to my landline through my Internet phone with Phone Power to a text message to my cell phone with Virgin Mobile and still this thing continues to happen. In both cases or at least in the case of my cell phone, I can show that I did not receive the phone call required to log in, a text message in case of the cell phone,  which clearly indicate a foul play by someone. 


Remember, this is not even about privacy. That ship had already sailed, as they say, and nobody seems to mind. The hedge fund guy and his gang see everything I type , visit or search for on my computers and seems to have the support of a professional group that can create viruses that cannot be avoided (Nevertheless he is still a joke when trying to connect things around me and put theories far from how I do that with him without any access to same things on his side) .No, this is about the minimum of keeping what is required to exist as secret in order to protect what is a basic general need that is being made unavailable to me.

  

Saturday, February 8, 2014

SEC regulations encouraging naked shorting

In fact, even the regulations themselves that were established by the SEC seem to encourage naked shorting and you know who benefit the most from these maneuvering paths (Hint: Not the individual investor). They don't make it clear that no shorting is allowed by a market maker or whoever unless shares first borrowed and not just expected to be borrowed. They justify giving such potential to manipulate the market with improving the liquidity in the market. Allowing the selling of nothing as existing shares  and reducing the value of shares owned by shareholders in order to offer better liquidity to them? What kind of excuse is that?  But again you know who benefit the most from this power to abuse the market.

Tuesday, February 4, 2014

Corruption in the market and the market crash of 2000


Does anyone wonder why as a result of stock market crash of 2000 ,unlike what happened during the recent problem with real estates, no big name like Lehman Brothers or Citibank declared bankruptcy or became under substantial financial trouble? In fact, during the real estate problem it was hard to find any big financial institution that was not affected by it. That is because what happened in the market down of 2000 was probably, like many other things, a game played or allowed to be played only on the ordinary people who invested in the market. The government watched people very unrealistically exaggerating the valuation of tech companies and did not try to advice and put a matching effort to restore sanity to the market? Why? Do you think it has nothing to do with trying to avoid impeding the big guys from devouring that big potential meal ? What could have been the excuse for missing that? Avoiding interfering with the principles of capitalism and free market? What happened to those principles when the government later interfered to save and help the big guys with financial support rather than just advice and wake up calls?
However the main thing for which I am writing this is how the investments of those ordinary people were treated in the market. I used to look at how stocks went down from high prices and think about the over valuation mistakes that led to this loss for many people. But a while after seeing what happened with the Viking system stock story and the naked shorting the corruption of the SEC allows in the market ,aside from other violations and fraudulent activities by some of those hedge funds and financial institutions I wondered how much fairness was left in the market during that time? I started thinking that despite the clearly huge over valuation mistakes ,how could we blame the loss people suffered on those mistakes only? If this is what happens in the ordinary days ,God knows what kind of corruption financial massacres the SEC allowed to happen during that time. A real investigation and looking into the records and books of brokerage and hedge funds of that period may provide even more shocking news about how unfairly people were being slaughtered in the market than that of Madoff' story. Even the minimum that came in the form of the SHO to combat the problem of naked shorting was not legislated until 2005 so imagine the mess of that time. But who is going to do such investigation? The same points I just mentioned in addition to what we all saw what this one hedge fund guy can pull are all indication showing for the power and control the big corruption forces have in this country.