Hi Orga,Although I haven't addressed this particular post - I...

Hi Orga,

Although I haven't addressed this particular post - I think at least some of the issues you raise have been addressed in other posts of mine.

I would say to you that in your post you raise the idea that "fear and greed" determine people's actions.

You said:

"this is exactly what we are saying and in the process create panic and scare people out of positions and guess who picks up the cheap shares."

What I am saying is that people must take responsibility for their own investments. In doing so they must have the knowledge and skills to rationally deal with their very important personal investments - investments which often will determine the quality of their lives for many many years. They must be able to orderly exit losing investments before panic and fear take them over. They must also be able to invest money in an orderly manner without greed determining where they put their money.

Also, consider the following:

1. Most managed funds and superannuation funds are required to be fully (or almost fully) invested in the market.

2. If a hedge fund offers to borrow stocks to short sell, the funds don't just hand them over. They require that substantial interest be paid on the borrowings.

3. The funds are effectively hedging against drops in the value of the shares they hold.

4. The funds are well aware that "no manipulation can put stocks down and keep them down".

5. The funds are well aware that sooner or later fair value will return to the value of the shares and they will have earned interest on the value of the shares which they have lent out.

I believe that this a side of the "Ain't it awful" story that people are not considering. It seems to me that the funds are, in fact, acting in the best interests of their investors.

I wish you wealth and happiness.

Cheers
Red