Archive for April 29th, 2009

Can You Trust the Government Information For Investing? No

Wednesday, April 29th, 2009

clowning around with investing

pic by 7ups

I find actions by the Treasury, Federal Reserve and the SEC of keeping information private in order to not adversely effect the market, very disturbing.  By keeping information private they are manipulating the market and therefore the news that investors have must be considered suspect and not the whole truth.   However, information is now internal to the companies involved and some of the larger investors.  Thereby, giving certain financial institutions and large investors inside information.

I find that the cartoons circulating can sum up the Government and Wall Street being a bunch of clowns just trying to entertain everyone to keep their mind off the real problem.  This provides Government and Wall Street the opportunity to do little and keep it more or less the same.  It is time to be open, honest, enforce the rules and make everyone accountable to the same rules.

However, the SEC has the time to make waves about Corporate Blogs and Twitter posts which are much more public.  Companies making public statements and letting the public decide how to utilize the information from companies is what investing is about.  The SEC job is to enforce whether the information is truthful or not.

The courts have repeatedly shown that stating information as a current fact when it is known to be lacking other facts that would otherwise influence an outcome can be considered fraud.  Those companies that have been shown to perform intended manipulation to gain an outcome are those companies that are severely punished for years by investors.

While the truth hurts in the short run it is more important that all investors can trust the information  they use to make informed decisions.

From what I am  reading, hearing and seeing organizations and individuals are growing tired of the lack of transparency and have acted accordingly.  Thereby, creating the wide swings in the market.