In the case of the U.S. automobile bailout, the U.S. Government
has been slow to respond. And that may be a good thing.
Perhaps it gives them a chance to review and be thoughtful about
what they should do. Perhaps they will consider it all carefully
from all sides.
But who are we kidding. Where the media goes, the
government goes. When Treasury Secretary Hank Paulson said
the TARP emergency funds were absolutely necessary and time was
critical, he single handedly scared an ignorant media into
submission, which also scared lawmakers into submission.
Today is no different. It is commonly reported that the
automakers cannot fail. And it is commonly reported that
their business is a failure.
It is not commonly reported, however, that the deregulation of
short selling and the subsequent destruction of share price values
as a result have played a major role in the new government need to
save companies. The root of the cause is still a mystery to
our savvy financial media.
Unethical short sellers like Jim Chanos and former unethical
short sellers like Jim Cramer instead become hosts of shows on
CNBC. In fact, in a recent New York Magazine article entitled
"The Catastrophe Capitalist," Chanos was featured in a multi page
story about his strategy of using the media to attack a company's
value and profit off of the short sale. On top of that, he
admits to actually hiring the financial journalist at a later
time. It is further noted how journalists in contact with a
man like him are envied.
Where is the U.S. government when you need it? This is not
a story hidden in a court filing. It is…
