ABS grew quickly with the mindset that the market loves growth...

ABS grew quickly with the mindset that the market loves growth at any cost. Growth was fuelled by government subsidies and apparent success in Australia. Expansion into an overseas empire was funded by debt which became more expensive to service and more difficult to rollover, especially once the big end of town took its bats and balls home [how long will they remain there?]. I suspect some economic and political gods were also offended.

Major external investors sold out of XAO stock in a desperate effort to avoid the Bear Stearns solution at home. Others institutional investors advised clients to exit equities [one as early as July 2007]. Organisations unknown [to me anyway] identifed soft targets vulnerable to shorting; ABS was one such target. Global debacles assisted the grisly bears to rip the flesh of the XAO to the bone, spreading panic and turmoil while Mr Swan and Glen Stevens deserately tackled inflation.

To assist the XAO to drop more than 25% from its peak and increase trading activity the ASX introduced CFD trading and allowed both naked shorting and short covering to explode at the start of November. Eddie et al at ABS were caught short with their pants down and ABS' share price slid into an abyss. Profiteers picked or maybe even engineered the dead-cat bounce and now stand over the ABS carcass seeking any signs of life. Eddie sought a bailout from ..... Morgan Stanley!

Wouldn't it be nice to know the names of the three bears and how much tax they will pay in Australia for their activities. Maybe Mr Swan will change ASX rules to make the game more equal for all players - dispensing with 'market makers', naked anonymity and tax avoidance. If not, many of our companies can easily be raped and pillaged by global terror bears.

BG's proposed offer for Origin Energy is an example of what follows; after rape and pillage the offended gods / big end of town sniff out the newly created bargains and demonstrate to us all how clever they are.

As one small fry I intend to retain my somewhat damaged investment in ABS on principle - commitment to kids' futures and to Eddie's stated vision for the company.