Friday, September 19th, 2008...2:40 am
SEC Freezes Shorts, My Prediction
Okay, shorting is prohibited until October 2, 2008. Good to know. Sometimes circuit breakers (trading halts) are necessary to keep things from burning to the ground. Sometimes uptick rules are employed. And sometimes, just sometimes, economies collapse despite government intervention (think of Russia and Rubles). While on the topic of monetary disasters, it seems wise to consider REFCO. They were the largest independent futures trader in the world. They participated in trillions of dollars of transactions DAILY and their assets were once valued near 48B. Their CEO hid a paltry 450M debt from shareholders and when it was discovered, their accounts were frozen and the company quickly sought relief via Chapter 11.
Friends, three years ago my currencies trading account was alive and well at REFCO. On October 11, 2005, I learned a valuable lesson regarding the dirty games people play with our money. Today, that company is defunct and I have $0.23 for every $1.00 that was on deposit with them. That was a 77% drawdown that was not factored into my risk assumptions. With a watchful eye, I have witnessed a similar depth of corruption in ALL financial dealings and it has rotted out the bottom of this economy. But this time, I’m ready. I am my own central bank, food bank and value analyst. It’s a little thing my ancestors called self-reliance.
The last ten seconds of this 45 second video sums up the U.S. economic future:
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