Let’s say that I knew of a company that would be insolvent within a year. What should we do as capitalists to make a killing with this information? We could take all our money and short that stock and make an absolute killing as the stock drops to ZERO! Right? WRONG! You can only do that in a capitalistic system with a free market. Unfortunately, that’s not what we have in the USSA (United Socialist States of America).
The stock in question is AIG and they reported today that they may not (WILL NOT) have enough money to continue as a going concern after this year - i.e. they’re going broke! In our socialist system, there is no point to shorting the stock because the free market is not in control - the socialists are in control and we all know that AIG is “TOO BIG TO FAIL”!!!
Since AIG is/always will be supported by the govt. they will not go broke. So therefore they are not a good shorting prospect. They’re no different than Fannie & Freddie. The time to short AIG was long before the govt. got involved. When it comes to govt. waste of taxpayer money, I feel each party has their own way of doing it. Govt. will not change as long as the majority of people/corporations have an entitlement mentality. Politicians simply deliver what the MAJORITY of people want in order get re-elected. The majority won’t change on their own. Making entitlemnts tougher to get and or eliminating them will force able- bodied lazy people/ corporations to fend for themselves or perish.
I’m in total agreement regarding AIG. The feds overstepped when they bailed them out. How about bailing out us, the little guys, after losing most of our career profits and savings when the feds manipulted the markets and sank our respective businesses?!!!
My remedy is multiple income streams. Although the mid 2006 fallen market took it’s toll on my savings, I have other businesses that still produce income that our feds cannot manipulate.
I am representing a product out of Japan in an international market, so my lifestyle will not be dictated by the inappropriate behavior of this governments propensity to move towards socialism.
One man’s humble opinion.
Rob