Monday, July 21, 2008

Desperate collusion

I'm astonished at how overtly the government and financial institutions are colluding to try and bail out a systemic collapse. They really must think that the general population is blatantly ignorant and stupid. Sadly, they are right as they are getting away with murder before our eyes.

The recent short-squeeze put on financials has been classicly coordinated. The SEC cherry-picks 19 institutions to place restrictions on short-selling. This is done exactly at a time where financials are tanking (rightly so) and desperately need to raise money. At the exact same time, these financial companies are releasing quarterly earnings reports that are remarkably up beat. Or so it seems. If you peak under the covers, the banks are playing lots of funny games to push losses out to future quarters. This is all working out nicely to give banks a "timely" boost in share prices as they go cap in hand to the market to raise more money.

While hard to prove, it's clear that the timing of this and these moves were NOT a coincidence. This is a clearly concerted effort to force shorts out of the market causing covers to boost share prices at the same time the earning reports miraculously spur the bulltards on.

The sad thing is, any fools who jump on this recent run-up or any coming equity sale are going to get murdered. What's occurring recently is criminal in my opinion across the board. The government in the last 6 months has trampled on the constitution and tax payers and is quickly moving towards a socialist bailout of massive proportions. This is one tax payer who might make quarterly withholdings take on a new literal meaning.

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