End of innocence for many?

Remember the good ole' days when everyone laughed and scoffed at any suggestion that the stock markets were manipulated the last few years .... all it took to end that innocence was 100 ES points up in a couple of hours timed perfectly with option expiration and this shorting rule threat.

No matter what is done now, the most important fact is that this loss of innocence will have eroded the most valuable commodity underpinning the US market - trust-worthiness:
Who will ever stay short a big decline again for fear of such ramp job occuring again? result - shorts will not build up to generate short covering rallies which stop such steep declines.

Who will leave the USA markets with the mere threat of such a shorting rule? result - huge loss of liquidity which is the life blood of the market.

When this shorts trap ends as it will maybe hours, days, weeks or a few months to get past the election, and the market goes to new lows as it will - who will buy then knowing that even such extreme measure failed? Result - any future measures will be expected to fail, and thus be negative i.e. damned if they do, or don't.

How will trust worthiness be restored, its was earned over 200+ years of freedom come what may including the great depression , and yet destroyed in a mere instant.

At least we live in interesting times eh.

Mark.

p.s. I guess I will need to change my avatar now...as the cat is out of the bag so to speak.

Edited by entropy, 18 September 2008 - 10:54 PM.

At least we live in interesting times eh. Amen to the rest, but no these are not interesting times. What you witnessed is evil greed and the same evil destroy it's parties. All those that took part in this orgy game (greedy politicians, bankers) are out for blood and they will try hard to convenience you that what they do is for your own good. Checks in the mail and we are here to help, yeah right

At least we live in interesting times eh.

Amen to the rest, but no these are not interesting times. What you witnessed is evil greed and the same evil destroy it's parties. All those that took part in this orgy game (greedy politicians, bankers) are out for blood and they will try hard to convenience you that what they do is for your own good. Checks in the mail and we are here to help, yeah right

Yeah but its interesting , you don't see stuff like this very often in history.

There's that old saying 'money and absolute power corrupts absolutely.'
....its greed and its predictable consequences that generate the cyclical nature of economies/markets....

Anyways, no worries, the matrix will soothe away the majorities fears for the meagre price of increased control over individuals rights.

Mark.

Edited by entropy, 19 September 2008 - 12:51 AM.