Capitulation Manipulation

The technicals indicate considerable manipulation of market prices.

The SEC ban on short sales, for example, expired yesterday and the shorts (mostly institutional hedge-fund managers of private equity) went right in to distort the markets into a capitulatory sentiment.

A market with a 1000 point intra-day swing is hardly the model of stability that short interest is supposed to provide as a public service to us all.

Short speculators argue they do the market a public service by controlling volatility and overvaluations. Pure poppycock!

Short sellers are engaged in price manipulation, and understand that manipulation of prices and markets is a crime. It distorts the market valuations, causing confusion with false signals and sudden reversals to cause fear and encourage greed.

Both fear and greed are negative sentiments. It indicates a market full of malevolent players that pretend to be benevolent free marketeers. These are the people that will consolidate your savings through market manipulation, even if it means taking a loss, and claim it was in your best interest. The loss to the manipulator is temporary. More important is the consolidation, which adds to the power, the ability, to manipulate prices and markets that is, again, a criminal activity that has the intended effect of dispossessing you and subjecting you to the consolidated power.

Thinking that the solution to the corrupt forces of consolidated power is to socialize it, alleviating consolidation with confirmed consolidation, would be counter-intuitive.

For example, the Credit Default Swap is an improperly securitized insurance instrument. In other words, the financing needed to back the securities (the insured value) is a fraud to avoid regulatory authority (the government overseer which is composed largely of the overseen). Now that the fraud has been disclosed, the government is going to buy the fake value, essentially worthless, and the fakers, the frauds, trot off with the booty. Socializing it will just afford the process the full force and legitimacy of public authority, like what we see happening now with the bailout plan.

This is not free-market economics. It is gangster capitalism! Turning it into a reliance on the very same technocratic elite that created the problem, supposedly with a free enterprise in the public interest, to be entrusted to fix it in the public interest, is fundamentally flawed.

The efficiency of the elitist model, and its legitimacy to produce the General Welfare as the collective will of The People, is disconfirmed. In order to correct for it, the model MUST BE rejected, thrown out!

The illegitimate elitist model of confirmed inefficiency must be capitulated without being manipulated into a false legitimacy of the collective will and the public good.

Ensuring free markets in priority, not the welfare of elits, will produce an easily verifiable legitimacy that is The General Welfare.