New study appears to have found the culprits behind the Great Recession

Lax Regulation is coming to get you!

Whoopsie! Regulations created to prevent another Great Depression were repealed right before the housing market crash. The "Uptick Rule" was created after the Great Depression to outlaw certain kinds of destructive short selling that is essentially market manipulation. In July of 2007, the rule was repealed because the SEC thought it was just a silly rule that had no relationship to the Great Drepression. In November of 2011, a group of unknown investors performed a "Bear Raid" on Citigroup in which a group of people short sell a stock in a coordinated fashion that would have violated the rule a few months earlier. That grouped pocketed about $600 million while Citigroup was killed and the financial system spiraled the world economy into the Great Recession.

The SEC asked for comments on the re-institution of the rule in 2009 but really hasn't done shit about it. Apparently, Hedge Fund managers hold just a little more sway over the SEC than the public.

What should we expect from an organization that completely missed the Bernie Madoff Ponzi Scheme?

Category: Shady Law
Posted 12/22/11 by: sleze


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