To The Regulators: STOP THIS NOW!
Courtesy of Karl Denninger at The Market Ticker
1 billion shares on the tape as of 9:00 Central on the NYSE and who’s responsible for over 1/4 of it?
This is outrageous folks. Three zombies, one of which has no equity value and two more that exist only because the government has guaranteed, collectively, half a trillion dollars of what may be worthless assets.
Not to mention all the ENRON-STYLE off balance sheet exposure that we have no means to value or come up with a reasonable understanding of.
This sort of garbage "support" for market volume, put forth for the explicit purpose of propping up stock market prices and generating fees for the trade of each share at the NYSE, is an outrage.
If this is not stopped we are going to wake up one morning to a lock-limit down market crash when this so-called "market liquidity support" is withdrawn as the boys with the computers come to end of the rope where they can steal a fraction of a penny from each trader who buys into this frenzied froth-driven fraudulent nonsense.
The retail bagholder will, as always happens, get utterly screwed in the inevitable collapse as what is left of our economy and financial markets implode into the hole left by the disappearance of this imaginary "liquidity."
Regulators have an obligation to step in and put a stop to this crap – an obligation that they have utterly refused to meet for the last six months.
