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This article was authored by Tim McCormack of Alpha Titans: There is nothing wrong with Government coming to the rescue of financial institutions where mismanagement has caused risk of failure in a way that jeopardizes the stability of the entire financial system. What is wrong, and is both a violation of public trust and a display professional incompetence, is to contribute taxpayer money in a way that enriches management and the owners of these mismanaged companies rather than the taxpayers.

Additionally, it is also a violation of public trust when government officials deliberately manipulate markets on behalf of certain market participants at the expense of others. The recent market manipulation executed by the US Securities and Exchange Commission by banning short selling of financial stocks is all the more outrageous due to that fact that it was specifically designed to enrich the very individuals who mismanaged their companies into near bankruptcy, and who are the underlying root cause of the larger systemic financial crisis by manufacturing, distributing, and inventorying toxic debt.

It is now well known that these financial firms manufactured, distributed, and inventoried near-fraudulent debt (financial widgets) at 30:1 leverage. Investors do not want these widgets at the current offer price, and if the widgets were priced and offered at a realistic market clearing price, it would likely bankrupt the vendors.

Hank Paulson (in concert with B......................

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