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HomePump and Dump
Posted by Larry Doyle on May 6th, 2010 2:28 PM |
Has the price action over the last year been largely nothing more than one of Wall Street’s greatest scams? Which scam is that? The classic scam in the securities industry known as pump and dump. While this scam is typically relegated to penny stocks or thinly traded stocks, the fact is the basic principles have been utilized within our current market structures as well.
The coordinated actions amongst global governments, regulators, and accounting boards have allowed the system to disguise the fact that our global economies remain mired in excessive debt. Obviously, certain countries and companies are much less impacted by debt than others but largely speaking the global debt vs GDP ratio remains exceptionally high. This fact is not changing anytime soon. (more…)
