The MacDougal Post: Taped Cell Phone Calls

November 11, 2010

Taped Cell Phone Calls

    Bloomberg TV reports that England will start taping trader’s cell phone calls soon. The new regulatory policy is aimed at stopping insider trading, and easily evaded, but, hey, a win is a win, and we‘ll take it. Coming on the heels of Germany’s outright ban of short sales, we find ourselves approaching joyous delerium here at The MacDougal Post.

    So much so our blogger’s decided to cut you a break. That’s it for today.

    He’ll get back to ragging on next time.

    Experience shows that an Oracle needs two martinis a week to see everything. This week it’s going to be three, and The Guru’s already started on that extra.

    Party on, valued readers. It’s a gala time to be one of the good guys. Throw a Taped Trader Hoedown yourselves this weekend.

Investor Aside: Lately, an energetic white plume has been rising above Jupiter's cloud tops, possibly heralding the return of the giant planet's missing stripe. We are proud to observe that The MacDougal Post is the first financial blog to chronicle this fortuitous omen. All may be well again soon.

Inside the Scam

Short-sellers flood markets with bogus shares, involving buyers in bookkeeping transactions, not stock, and not telling them about it. Wall Street helps hide the fraud with Madoff accounting, even letting shorts pay dividends as part of this scam, duping investors into believing they get real dividends paid by the company they thought they invested in.

Worse, short-selling, in effect, adds these phony shares to the actual total number reported in company financial statements, which goes into the various earnings per share (EPS) calculations, essential components of the critical metric universally used to value common stocks, the price/earnings ratio (P/E). In a selling frenzy, EPS can be cut from, say, $4.00 to $0.40 or $0.04 or whatever, by the immense volume of fake shares these pretend investors are drubbing the real ones with at point of purchase.

Every reference made to P/E as a calculable metric is a lie. Our stock market is gamed by short-side racketeers, rendering equity investment in this country a massive securities fraud. Their humongous swindle purloins much of our savings during every market downdraft.

Odds are the SEC staff belongs in jail. Gangland racketeering is more than enabled by the complicity of our regulatory hotshots. Mob stooges inside that agency have spearheaded these cons for generations, flat out lying to us all those years.

Surely, the SEC's remarkable contention that short-sellers borrow their shares from you and me is, in its downright absurdity, the nadir of arrogance and criminal obfuscation.

That's why we're never asked to go along with it.

Site Exclusives

As our young readers know, any loser who steals mommy and daddy's savings is a stupid ninny.

Wall Street hires the biggest dumbbells in the world. That's because God hates stealers, and the nincompoops don't even know it.

Keep an eye on bad men like hedge fund managers, bank CEOs and proprietary traders right here in The MacDougal Post. Incorrigible dingbats like Mucus Poole-Knightly, Pockets MulGoon, and Lewie the Dip, just to name a few of the head cases found on the site, are contracted to appear here exclusively.

You won't find that kind of financial coverage anywhere else in cyberspace.

Check in with us regularly to find out what's really going on with your money, if there's any left. And when it's all gone, take a shower whenever you can and drop in on us from the local public library.

The MacDougal Post

Prize

November 11, 2010

Taped Cell Phone Calls

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Site Exclusives