Repeal the SEC
Posted by Ivo Cerckel on December 17th, 2008
The USA Securities and Exchange Commission (SEC) is criticising itself for having failed to detect Mr Madoff’s alleged USA dollar 50 billion Ponzi scheme though his consistently high returns had aroused suspicions over the years and sparked complaints to regulators. (1)
The good thing about this is that our Masters will be foreclosed from bailing out Madoff who himself admitted he was a Ponzi scheme.
The efficient market hypothesis states, in its simplest form, that the current market’s valuation of an asset accurately reflects all past and present information from which each and every shareholder thus receives the full benefits. (2)
Right, it follows from the efficient market hypothesis that the current market’s valuation of an asset does not reflect future information about the asset.
That’s why the sheeple need a government, financed through taxation whereas the thief does not come back periodically, nor does the thief pretend to stealing in the public interest.
The SEC should have alerted the sheeple to Madoff being a Ponzi scheme.
But we are still not being told what would have been Madoff’s Ponzi scheme.
This is still future, science-fiction, information.
The SEC was established by the United States of America congress in 1934 as an independent, non-partisan, quasi-judicial regulatory agency following years of depression caused by over production of goods, the introduction of consumer credit, and the Great Crash of 1929. The main reason for the creation of the SEC was to regulate the stock market and prevent corporate abuses relating to the offering and sale of securities and corporate reporting. The SEC was given the power to license and regulate stock exchanges, says Wikipedia. (3)
The Greater Depression nevertheless started this fall.
The SEC is utterly incompetent.
The efficient market hypothesis says that the current market’s valuation of an asset accurately reflects all past and present information. Like the current market’s valuation of the asset, the SEC cannot provide future information about that asset
What’s then the use of the SEC? What kind of information which the market cannot provide does the SEC provide?
Still, the Internal Revenue Service (IRS) of the USA is extracting funds from honest people to keep the SEC bureaucrats alive.
Repeal the SEC immediately!
Ivo Cerckel
17 December 2008
NOTES
(1)
SEC chief criticises failures in Madoff case
By Joanna Chung in New York
Published: December 17 2008 02:25 | Last updated: December 17 2008 02:25
http://www.ft.com/cms/s/0/92bd4c68-cbd7-11dd-ba02-000077b07658.html
(2)
Arthur B. Laffer, “Do Investors need More Information?” in: M. Bruce Johnson, ed., “The Attack on Corporate America”, McGraw-Hill, 1978, 107
(3)
http://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission
December 17th, 2008 at 17:00
Still no explanation/definition of the Ponzi scheme:
“It is thought that BLAHBLAHBLAH”
Regulators face Madoff grilling
Page last updated at 06:40 GMT, Wednesday, 17 December 2008
http://news.bbc.co.uk/2/hi/business/7786923.stm
SNIP
It is thought that Bernard Madoff was running what was essentially the world’s largest pyramid scheme, the BBC’s Andy Gallacher reports from Washington.
Now serious questions are being asked about the SEC’s role in not preventing it in the first place, our correspondent says.
December 18th, 2008 at 09:16
The SEC and its chairman have come under a storm of criticism for oversight failures amid the financial crisis, raising doubts about the future role of the agency.
( Pressure rising on SEC over detection failings
Dec 17 2008 23:25
http://www.ft.com/cms/s/a73e66ea-cc6d-11dd-acbd-000077b07658,s01=1.html )
Obama set to name Schapiro as new SEC chief
Dec 18 2008 00:52
Barack Obama is on Friday expected to name Mary Schapiro, head of the securities industry’s self-regulatory body, as chair of the Securities and Exchange Commission, according to senior Democratic officials.
http://www.ft.com/cms/s/2ef89dda-cc9b-11dd-acbd-000077b07658,s01=1.html