THE CLEANSING CONTINUES

just when you thought the bubblesque malfeasence was over and done with, eliot spitzer strikes again. now its the mutual funds who have been called out to account for their improprieties. it seems that the fund families have been treating some of their customers like children and some like step-children. the funds have been allowing hedge funds to front-run retail clients and make short term trading profits.

the subpeonas went out last week and already 2 of the majors, janus and Bank of America, have admitted to the scam and agree to stop it now. i'm sure there is more to come as the information requests get completed. emails will be a great source of information and, if recent history is any guide, they will shed the most light on this latest bout of wall streets untrustworthiness.

the public seems immune to the latest news as it is now clearly taken for granted that the small investor invests in the market at a signifcant disadvantage to the institutions. so whats another round of sunlight going to do to change things? there will be more fines levied with no admitting or denying of the charges. there will be more compliance officers hired and oversight committees formed. there will be more ceo's saying that they will do whatever necessary to regain customer confidence. and on we will go.

it is just another stark admission of how broken wall street really is and how the rules and regulations do nothing to protect the average investor. the more things change, the more they remain the same.

have a grateful day!

larry