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Old 09-19-2008, 05:22 AM   #1
Zarathustra
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Default this article from a man with no obvious incentive to speak thus

http://www.thestreet.com/story/10438...l?puc=newshome


Cramer: Feels Like Financial Terrorism

09/18/08 - 03:44 PM EDT

It almost feels like financial terrorism. It feels like we are in a moment where there are institutions that are willing the destruction of our banks, institutions that want the nation's financial system to fail. I have no evidence of any of this, honestly, and I have canvassed enough short-sellers today to be able to say that I do not know one of them at this point who wants our financial system to be destroyed for his or her own profit.

I have no facts, no understanding of the situation that would ever for a moment be able to explain what's going on.

I literally am searching for a reason why this is all happening and why people believe that a failure of a Goldman Sachs(GS Quote - Cramer on GS - Stock Picks) or a Morgan Stanley(MS Quote - Cramer on MS - Stock Picks) can actually occur, given how well they are doing. But I will tell you ahead of time that any investigation at this point of the selling in these firms might prove that it is motivated by more than just typical short-selling.

Still, I believe it is imperative to point out the non-terrorist causes, if only because I don't want to believe that there are others at work trying to bring the U.S. financial system down.

First, all of these firms took on too much debt, even Morgan Stanley and Goldman Sachs, to make loans to all sorts of players. Many of those loans are being repaid, in fact almost all of them. They are current.

Second, when the government seized the common stocks of Fannie Mae and Freddie Mac, it did unleash a view that common stocks of even the best financial institutions -- and Fannie and Freddie were hardly the best -- could never be trusted.

Third, if it didn't have tangible assets and just relied on confidence and faith, which is the nature of a financial institution, the faith has been destroyed by the subsequent Lehman and AIG(AIG Quote - Cramer on AIG - Stock Picks) failures.

All of these could very well amount to reasons for Morgan Stanley and Goldman Sachs to fail. But I don't think they do.

Should they be "allowed" to fail simply because of a temporary loss of faith?

I don't think so.

My conclusion: I believe that fear can destroy many stocks, but this selling feels motivational and not done by those who sell short stocks as a way of living. I sure would like to be able to see who is selling these stocks in order to take financial terrorism off the table.
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Old 09-19-2008, 02:08 PM   #2
Northboy
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Default Re: this article from a man with no obvious incentive to speak thus

Did you ever read the Art of War?

The most successful general encircles his enemy and works to create internal strife so that he effectively wins the War without firing a shot.

If you get above the chaos and stand back a bit at this time, you might ask, "who holds the cash and what are they doing with it?"
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Old 09-19-2008, 02:36 PM   #3
Zarathustra
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Default Re: this article from a man with no obvious incentive to speak thus

n,

That is exactly the proper perspective when viewing events in the world, yet completely lacking from our mainstream "media". What's the old saying - "follow the money".

good observation
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Old 09-19-2008, 03:54 PM   #4
JSErwine
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Default Re: this article from a man with no obvious incentive to speak thus

Quote:
Originally Posted by Northboy View Post
Did you ever read the Art of War?

The most successful general encircles his enemy and works to create internal strife so that he effectively wins the War without firing a shot.

If you get above the chaos and stand back a bit at this time, you might ask, "who holds the cash and what are they doing with it?"
The Art of War, should be required reading for everyone. There is so much that can be learned from this book.
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