March 29, 2011
why does wall street want derivatives? because it makes it easier to manipulate prices. it is an additional revenue stream.
i mean, they can sell short on the equities, take options, AND use derivatives to manipulate prices.
this is not hedging.
unfortunately, the maximum that FINRA could do, would be to kick the firm out of FINRA. and FINRA usually levies fines, takes the license of individual brokers. this is criminal activity. the FBI needs this information, uncompromised. firms that allow this should lose their license to trade and be fined so heavily that they are bankrupt. brokers who allow this should lose their personal license to trade.
ETF's are derivatives, using particular companies as the underlying value. but shortselling is divorced from underlying value - they only care about price. an index should mirror the underlying value however this is a derivative that is supposed to reflect 2x the change in price of the equities in this fund.
shortsellers believe that if they short the index, the derivative must go and sell sufficient equities to cause the market to trend downward and that investors would not know of this bearish raid on the derivative until after the derivative backers had sold into the market. this is a conspiracy.
thieves in the market. this a money transfer from one economic class to another, and the people who are doing it are no robin hoods.
if behavior like this is tolerated, we have a new government, unelected, and the rest of us are just economic slaves.
suzanne hamlet shatto
Copyrighted material redacted. Author cites:
Toonkel, Jessica. "FINRA Investigating Exchange-traded Notes: Spokesperson." Reuters. Thomson Reuters, 29 Mar. 2012. Web. 30 Mar. 2012. http://www.reuters.com/article/2012/03/29/us-finra-etns-idUSBRE82S1B520120329.