LOS ANGELES, Jan. 22 /PRNewswire/ -- President Obama's plan to regulate the banks is "not enough," says author and Wall Street insider Zubi Diamond. "If you do not understand the root cause of the problem you will never come up with a permanent solution."
Diamond, a rags to riches investment entrepreneur is author of Wizards of Wall Street: & Washington Lap Dogs (ISBN 9781448650040, Create Space Publishers, 2009, 110 pgs., $15.99 available on Amazon or http://www.zubidiamond.com )
Diamond reveals how hedge fund short sellers lobbied the SEC to remove safeguard regulations in place since 1938 to prevent the stock market from crashing and then engineered the economic downfall.
"The fundamental simple solution to the economic crisis is to reverse every change that Christopher Cox implemented during his tenure as SEC chairman," says Diamond. "Put everything back the way it was in 2006 before Christopher Cox started 'fixing things' that were not broken."
"Our representative government has ceded the power of policy writing and regulation of our banking and financial markets to a lobbying company for the hedge fund short sellers whose greed for power and profit led them to subvert our capitalist system economy," says Diamond.
Diamond shared what he discovered in research with congressional leaders before publishing his book. As a result of Diamond's efforts, the SEC was asked to restore previous regulations but did so in a way to make the changes meaningless. At that point, Diamond decided to publish his recommendations.
- Reinstate the uptick rule.
- Remove mark-to-market accounting and replace it with historic cost accounting.
- Dismantle and discontinue trading on all the short Exchange Traded Funds (ETFs), also called leveraged inverse ETFs.
- Reinstate the circuit breakers and the trading curb to kick in whenever the Dow Jones drops 150 points.
- Regulate the Hedge Funds just like mutual funds and pension funds are regulated.
- Regulate speculation on crude oil futures by banning margin and leveraging except for the airline industry or any other end user.
Zubi Diamond is a living example of Horatio Alger's legendary rise from rags to riches immigrating to America from Africa. He is an entrepreneur, author, investor and a successful stock trader with his own investment firm. Diamond has 14 years financial market experience and 21 years as an entrepreneur.
SOURCE Zubi Diamond