THE RETURN OF STOCK POOLS
Posted On: Monday, April 07, 2008, 6:09:00 PM EST
Market Commentary From Monty Guild
Author: Monty Guild and Tony Danaher

Congressman Barney Frank from Massachusetts has been in the news pointing out that rumor
mongering short sellers were very actively spreading negative and possibly false rumors
about Bear Stearns before it collapsed.

During the Great Depression of the 1930's, famous speculators with a bearish bent created
stock pools; pooling their money together to attack and short sell stocks, often armed
with misinformation that they spread about the prospects for the companies they were
shorting. The operators of the pools often created big profits for themselves and huge
losses for the stock holders of the companies that they had shorted.

Many observers point out that the pools certainly helped expand the stock market decline
of the 1930's and may have substantially prolonged the depression. Joe Kennedy was later
appointed the first head of the Securities and Exchange Commission because of his
firsthand knowledge of the pools; and he worked to disallow many kinds of their
destructive behavior.

Today, we believe short selling pools have reappeared. Any CEO of a public company that
has been the target of them can tell you that there is a lot of inaccurate and very
negatively spun disinformation and misinformation connected with today's short selling
tactics. The Internet has allowed for the spread of information both true and misstated.
The Internet is hard to regulate and this has given power to those who spread such
disinformation and misinformation.


http://www.jsmineset.com/ 

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