Tuesday, August 5, 2008

More Great Grist from John Mauldin et al

John Mauldin sent out a great article written by one of his buddies, Michael Lewitt of Hegemony Capital Management, this week. This is great stuff! After listing the names of the 19 private companies that were "protected" by the SEC in it's recent short ban, he makes some fascinating analytical points. Here is a tiny sample:
Among the more interesting aspects of this list is the fact that more than half the names are non- U.S. firms enjoying the protection of the U.S. regulators and the fact that some large U.S.-based firms that are clearly being pummeled by short-sellers are missing from the list (i.e. Wachovia Corp., AIG International Group, Inc., Washington Mutual). The ostensible basis for inclusion on the list - status as a primary dealers plus Fannie and Freddie - speaks to the reactionary nature of the rule-making. Finally, this desperate measure is yet another example of the capitalism-for-the poor, socialism-for-the-rich economic model that American financial authorities have adopted over the past two decades.
Wow! One certainly must wonder why some foreign companies were protected, while feeding some large and vulnerable American companies to the sharks! Maybe it's time for more torches and pitchforks as the American people march on Washington!

What a great newsletter. Here is the entire copy from John Mauldin:

Survival of the Unfittest