The Fraudulent “Financial Reform” Bill
The “too big to fail” concept is not the reason for the economic crisis. The problem is not Wall Street as a whole, but the hedge fund short sellers on Wall Street. They call themselves the “alternative investment community” and have organized themselves into a special interest group called the Managed Funds Association (MFA).
AIM Report | By Zubi Diamond
The Chris Dodd financial reform bill is totally unnecessary, unwarranted and will be harmful to the Republic. The “too big to fail” concept is not the reason for the economic crisis. The problem is not Wall Street as a whole, but the hedge fund short sellers on Wall Street. They call themselves the “alternative investment community” and have organized themselves into a special interest group called the Managed Funds Association (MFA).
In order to understand where Dodd went wrong, the public must learn to differentiate between what I call the “good” Wall Street and the “bad” Wall Street, and what roles they play in our economy.
An example of the good Wall Street would be someone like Warren Buffet, Steve Jobs or Sandy Weill, and many more. These people create, run or finance money-making companies and serve the community with much-needed jobs and employment, products and services. The good Wall Street includes the general public mutual funds, retirement portfolios, common investors, banks and venture capital investors who finance and fund the loans for our homes and businesses. They fund and finance economic growth and expansion.
An example of the bad Wall Street would be someone like George Soros. These people are the financial hedge fund short-selling operators who make money by betting on company collapse, economic calamities and catas-trophes.
Soros and his collaborators have an anti-capitalism agenda, an anti-industrialized nation agenda, and a far-left liberal, Marxist radical agenda. Most hedge fund short sellers are not capitalist. They are anti-capitalist and they are not investors. They are anti-investors. They succeed when companies (or countries) fail.
For the good Wall Street to make money, prices have to go up. In this way, everybody makes money, the companies and their shareholders make money, jobs are safe and secure, the economy grows, and the economy expands. This is capitalism in action. The action of the good Wall Street grows and expands the economy.
For the bad Wall Street to make money, prices have to go down, which means that companies and their investors have to lose money or even go broke and collapse.
The bad Wall Street is the hedge fund short sellers. They destroy companies, take away liquidity, destroy investor capital and slow down the economy.
The bad Wall Street, in the form of the hedge fund short sellers, engineered the economic collapse, looted every portfolio that had exposure to the stock market, and blamed George Bush and the Republicans, enabling Barack Obama and his backers, including Soros, to take power.
Unless the truth about the role of the MFA in our government policies and regulations is revealed, and some courageous lawmakers free our economic system from their grip, the United States is in for a long time of hurt and possible bankruptcy.
George Soros is the leading member of the MFA. He is also the most influential and the most politically active member. He was behind Barack Obama‘s election as President.
The Bill Is A Fraud
The Dodd bill does not mention anything about regulating the hedge fund short sellers. In fact, the bill represents the biggest effort so far by the hedge fund short sellers to have the government seal of approval, to cover their role in engineering the economic collapse.
The measures I recommend address the root cause of the economic crisis. They are based on my own experiences in the financial markets and my historical analysis of what has worked in the past to prevent economic and financial catastrophes. They have worked and served us well for 72 years, until then-Securities and Exchange Commission (SEC) chairman Christopher Cox removed them due to the lobbying influence of the Managed Funds Association, the hedge fund.
The only financial reform needed today is to regulate and monitor the hedge funds and the hedge fund short sellers, some of them which are registered off-shore to avoid scrutiny. These global operators, with investors who remain mostly anonymous, must be compelled to register with the Securities and Exchange Commission (SEC), publicly disclose their positions in the markets, and maintain accounting and trading records for a period of 10 years so their activities can be monitored and scrutinized. Just like mutual funds, they must be prohibited from engaging in day trading activities.
Many people do not realize that the hedge funds are responsible for 75-90 percent of all trading activities on Wall Street. They are responsible for the extreme market volatility.
The important measures which must be taken include:
- Reinstate and restore the short sale price test regulation known as the uptick rule (to its original condition and not modified).
- End mark to market accounting and replace it with book value, historic cost accounting.
- Reinstate the “circuit breakers” and the trading curbs to kick in whenever the Dow Jones industrial average drops 150 points to reduce market volatility and massive panic sell-off in order to allow investors time to think before they act.
By removing the rules and regulations that protected the capitalists and their shareholders over the years, the SEC left all of us vulnerable and susceptible to looting through unrestricted short selling by the hedge fund short sellers.
The hedge fund short sellers looted $11 trillion from the U.S. economy. They walk away with all our invested capital and they walk away with the intrinsic profit from devalued home mortgages (our homes) through short selling. Yet, no one goes to jail. Why? Answer: they are too chummy with the Obama administration.
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