The MacDougal Post: Watershed Moment

December 5, 2010

Watershed Moment

     “And hedge funds are already seeking out ways to place bets against the debts of some states, with the help of their investment banks.”

    So write Michael Cooper and Mary Williams Walsh in today’s New York Times piece about fears of a looming crisis in the state and municipal bond market, current conditions in that arena recalling the recent sub-prime mortgage apocalypse and ongoing EuroZone catastrophe to seasoned observers referenced in the article.

    The above allusion to short-selling is a watershed moment for us, the first time we can remember anyone in the media coming this close to actually reporting on the racket, especially while it happens. Though somehow equating the economic destruction recently wrought on the civilized world and Iceland to a trip to an off track betting parlor, it wouldn’t take much for The Times to go the distance and call these gangsters out for who they really are. Shuttering our meager effort at The MacDougal Post because the media has finally jumped in is our fondest wish, and best hope for the country they run around watchdogging in.

    Maybe we’ll get there. Meanwhile, read the article knowing that we’re living the 1930’s right now whenever they mention that state and municipal defaults haven’t been a problem since the 1930’s, and you’ll come away with a fuller understanding of what’s impending here.

    Buckle up if you’re invested in any. The shorts may hit the fan with this one next.

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

December 5, 2010

Watershed Moment

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