hedge funds manipulate stock in secret, page-44

redbacka
perhaps a different ananogy might help you see the true picture of what is going on.
You say you don't hold centro shares. i don't know what shares if any you hold but let's say for argument sake you are a holder of CBA shares. Some bad publicity is being reported in the media. Next thing you see is the value of your CBA shares "falling by the biggest single-day fall in 19 years". You scratch your head and do some research and find that CBA has not lost a single cent in this subprime mess but the media has blown it out of all proportion.

Furthermore the ASX financial index in which you have shares in this example has "fallen by 30.3%" but on Wall St the cause of the problem the banking index has fallen by 21%.
Again you scratch your head and do some research and find that there is a loophole as follows
"Ordinarily, all trades have to be registered and must be disclosed to the stock exchange by nine the morning after the transaction. It is crucial information that ensures the efficiency of any market and ensures transparency.

But the hedge funds have found a legal loophole here that has allowed them to keep their trades secret. They get around the rule by "borrowing" shares. Where do they get them from? The chances are, if you have put money into a share investment fund or a superannuation fund, those shares are held by what is known as a custodian.

The custodian looks after the stock and does all the paperwork, allowing stockbrokers and super funds to get on with their business. The custodian charges a fee. But often a custodian will offer funds or brokers a discount if it can be allowed to "lend" the shares to other market players - such as hedge funds. And of course the custodian gets a fee for that too.

The hedge funds use these borrowed shares to sell into the market and force down the price. And they have obtained legal advice that, because they have borrowed the shares, they don't have to report the trades as "short selling". So the true scale of the selling has been hidden from authorities.

In recent months, the traders have stepped up the pressure. On top of the selling, they add in a nasty rumour to drive the price even lower. Given the sudden collapse in Centro Properties and Allco, these have been surprisingly effective."


Anotherwords they have been secretly using your super funds via the custodians to short sell your CBA shares.

You have no problem with this?????????
whose next is my question.
Will you still have no problem with this arrangement if the value of your super falls by 30% and the value of your holdings fall by 30%.
Called a Double Hit.
Remember they will walk away with a huge profit at your expense.
You can't seriously tell me you would have no problem with this??
Please think about what you are saying unless of course you are working for a hedge fund, because i can't see anyone else that would be happy with this rort.