SEC cant investigate all,so cant exonerate all China companies by the same reasoning.
The trouble with this approach is that during this investigation, ALL news media outlets have jumped on the bandwagon with their toothless broad-brush condemnation and just about every single pundit is stating, "this sector is too risky you shouldn't invest here, get out of Dodge!"
So the result is effectively a highly efficient sector bashing, and althugh at the end of the investigation there could be some valuable new rules, and rightly so, but as far as clearing individual companies, no way does the SEC have the manpower to do a full DD on 300 US-listed companies. Am I correct here?
Meanwhile this whole thing is going to be drawn out as the SEC takes a long time to accomplish things. Look how long it took to settle the 2006 case.
It would be far better if SEC and Congress were to just implement new rules in stages, starting as soon as possible, not drawn out forever, beginning as soon as they come up with some definite recommendations for concrete and practicable rules for ALL US-listed companies. That way they quickly accomplish something beneficial to help everyone other than just helping shorts and helping longs to lose more money, the media attention would go away, and meanwhile SEC could continue behind the scenes trying to figure out if there are additional rules they could add to ensure integrity. Sort of implementation of the positive things in phases, which relieves pressure on prices at each juncture, and causes headache ONLY for the affected companies who cannot measure up to the new rules, but no headache for everyone else. And less media opportunity to bash for months on end, they just LOVE the opportunity to point out "danger" and increase ratings, helping the shorts.
This whole thing is making the shorts DIRECTLY richer, and also helping their careers by helping out congress, talk about double dipping.
AI
