How to Think Clearly

"Never argue with stupid people. They will drag you down to their level and then beat you with experience." –Mark Twain

If you want to fully understand and appreciate the work of Mike Stathis, from his market forecasts and securities analysis to his political and economic analyses, you will need to learn how to think clearly if you already lack this vital skill.

For many, this will be a cleansing process that could take quite a long time to complete depending on each individual.

The best way to begin clearing your mind is to move forward with this series of steps:

1. GET RID OF YOUR TV SET, AND ONLY USE STREAMING SERVICES SPARINGLY.

2. REFUSE TO USE YOUR PHONE TO TEXT.

3. DO NOT USE A "SMART (DUMB) PHONE" (or at least do not use your phone to browse the Internet unless absolutely necessary).

4. STAY AWAY FROM SOCIAL MEDIA (Facebook, Instagram, Whatsapp, Snap, Twitter, Tik Tok unless it is to spread links to this site). 

5. STAY OFF JEWTUBE.

6. AVOID ALL MEDIA (as much as possible).

The cleansing process will take time but you can hasten the process by being proactive in exercising your mind.

You should also be aware of a very common behavior exhibited by humans who have been exposed to the various aspects of modern society. This behavior occurs when an individual overestimates his abilities and knowledge, while underestimating his weaknesses and lack of understanding. This behavior has been coined the "Dunning-Kruger Effect" after two sociologists who described it in a research publication. See here.

Many people today think they are virtual experts on every topic they place importance on. The reason for this illusory behavior is because these individuals typically allow themselves to become brainwashed by various media outlets and bogus online sources. The more information these individuals obtain on these topics, the more qualified they feel they are to share their views with others without realizing the media is not a valid source with which to use for understanding something. The media always has bias and can never be relied on to represent the full truth. Furthermore, online sources are even more dangerous for misinformation, especially due to the fact that search algorithms have been designed to create confirmation bias. 

A perfect example of the Dunning-Kruger Effect can be seen with many individuals who listen to talk radio shows. These shows are often politically biased and consist of individuals who resemble used car salesmen more than intellectuals. These talking heads brainwash their audience with cherry-picked facts, misstatements, and lies regarding relevant issues such as healthcare, immigration, Social Security, Medicaid, economics, science, and so forth. They also select guests to interview based on the agendas they wish to fulfill with their advertisers rather than interviewing unbiased experts who might share different viewpoints than the host.

Once the audience has been indoctrinated by these propagandists, they feel qualified to discuss these topics on the same level as a real authority, without realizing that they obtained their understanding from individuals who are employed as professional liars and manipulators by the media. 

Another good example of the Dunning-Kruger Effect can be seen upon examination of political pundits, stock market and economic analysts on TV.  They talk a good game because they are professional speakers. But once you examine their track record, it is clear that these individuals are largely wrong. But they have developed confidence in speaking about these topics due to an inflated sense of expertise in topics for which they continuously demonstrate their incompetence.

One of the most insightful analogies created to explain how things are often not what you see was Plato's Allegory of the Cave, from Book 7 of the Republic.

We highly recommend that you study this masterpiece in great detail so that you are better able to use logic and reason.  From there, we recommend other classics from Greek philosophers. After all, ancient Greek philosophers like Plato and Socrates created critical thinking.   

If you can learn how to think like a philosopher, ideally one of the great ancient Greek philosophers, it is highly unlikely that you will ever be fooled by con artists like those who make ridiculous and unfounded claims in order to pump gold and silver, the typical get-rich-quick, or multi-level marketing (MLM) crowd.





STOP Being Taken

If you want to do well as an investor, you must first understand how various forces are seeking to deceive you. 

Most people understand that Wall Street is looking to take their money.

But do they really understand the means by which Wall Street achieves these objectives? 

Once you understand the various tricks and scams practiced by Wall Street you will be better able to avoid being taken. 

Perhaps an even greater threat to investors is the financial media.

The single most important thing investors must do if they aim to become successful is to stay clear of all media.

That includes social media and other online platforms with investment content such as YouTube and Facebook, which are one million times worse than the financial media.

The various resources found within this website address these two issues and much more. 

Remember, you can have access to the best investment research in the world. But without adequate judgment, you will not do well as an investor.

You must also understand how the Wall Street and financial media parasites operate in order to do well as an investor. 

It is important to understand how the Jewish mafia operates so that you can beat them at their own game.

The Jewish mafia runs both Wall Street and the media. This cabal also runs many other industries.

We devote a great deal of effort exposing the Jewish mafia in order to position investors with a higher success rate in achieving their investment goals.

Always remember the following quotes as they apply to the various charlatans positioned by the media as experts and business leaders.   

“Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.” - King James Bible - Matthew 7:15

"It's easier to fool people than to convince them that they have been fooled." –Mark Twain

It's also very important to remember this FACT.  All Viewpoints Are Not Created Equal.

Just because something is published in print, online, or aired in broadcast media does not make it accurate. 

More often than not, the larger the audience, the more likely the content is either inaccurate or slanted. 

The next time you read something about economics or investments, you should ask the following question in order to determine the credibility of the source.

Is the source biased in any way?  

That is, does the source have any agendas which would provide some kind of benefit accounting for conclusions that were made? 

Most individuals who operate websites or blogs sell ads or merchandise of some kind. In particular, websites that sell precious metals are not credible sources of information because the views published on these sites are biased and cannot be relied upon.

The following question is one of the first things you should ask before trusting anyone who is positioned as an expert. 

Is the person truly credible?  

Most people associate credibility with name-recognition. But more often than not, name-recognition serves as a predictor of bias if not lack of credibility because the more a name is recognized, the more the individual has been plastered in the media. 

Most individuals who have been provided with media exposure are either naive or clueless. The media positions these types of individuals as “credible experts” in order to please its financial sponsors; those who buy advertisements. 

In the case of the financial genre, instead of name-recognition or media celebrity status, you must determine whether your source has relevant experience on Wall Street as opposed to being self-taught. But this is just a basic hurdle that in itself by no means ensures the source is competent or credible.

It's much more important to carefully examine the track record of your source in depth, looking for accuracy and specific forecasts rather than open-ended statements. You must also look for timing since a broken clock is always right once a day.  Finally, make sure they do not cherry-pick their best calls. Always examine their entire track record. 

Don't ever believe the claims made by the source or the host interviewing the source regarding their track record. 

Always verify their track record yourself. 

The above question requires only slight modification for use in determining the credibility of sources that discuss other topics, such as politics, healthcare, etc.

We have compiled the most extensive publication exposing hundreds of con men pertaining to the financial publishing and securities industry, although we also cover numerous con men in the media and other front groups since they are all associated in some way with each other.

There is perhaps no one else in the world capable of shedding the full light on these con men other than Mike Stathis.

Mike has been a professional in the financial industry for nearly three decades. 

Alhough he publishes numerous articles and videos addressing the dark side of the industry, the core collection can be found in our ENCYCLOPEDIA of Bozos, Hacks, Snake Oil Salesmen and Faux Heroes

Also, the Image Library contains nearly 8,000 images, most of which are annotated.


At AVA Investment Analytics, we don't pump gold, silver, or equities because we are not promoters or marketers.

We actually expose precious metals pumpers, while revealing their motives, means, and methods.

We do not sell advertisements.

We actually go to great lengths to expose the ad-based content scam that's so pervasive in the world today. 

We do not receive any compensation from our content, other than from our investment research, which is not located on this website. 

We provide individual investors, financial advisers, analysts and fund managers with world-class research and unique insight.







Media Lies

If you listen to the media, most likely at minimum it's going to cost you hundreds of thousands of dollars over the course of your life time.

The deceit, lies, and useless guidance from the financial media is certainly a large contributor of these losses.

But a good deal of lost wealth comes in the form of excessive consumerism which the media encourages and even imposes upon its audience.

You aren’t going to know that you’re being brainwashed, or that you have lost $1 million or $2 million over your life time due to the media.

But I can guarantee you that with rare exception this will become the reality for those who are naïve enough to waste time on media.

It gets worse.

By listening to the media you are likely to also suffer ill health effects through excessive consumption of prescription drugs, and/or as a result of watching ridiculous medical shows, all of which are supportive of the medical-industrial complex.

And if you seek out the so-called "alternative media" as a means by which to escape the toxic nature of the "mainstream" media, you might make the mistake of relying on con men like Kevin Trudeau, Alex Jones, Joe Rogan, and many others.

This could be a deadly decision. As bad as the so-called "mainstream" media is, the so-called "alternative media" is even worse.

There are countless con artists spread throughout the media who operate in the same manner. They pretend to be on your side as they "expose" the "evil" government and corporations.

Their aim is to scare you into buying their alternatives.  This addresses the nutritional supplements industry which has become a huge scam.  

 

Why Does the Media Air Liars and Con Men?

The goal of the media is NOT to serve its audience because the audience does NOT pay its bills.

The goal of the media is to please its sponsors, or the companies that spend huge dollars buying advertisements.

And in order for companies to justify these expenses, they need the media to represent their cause.

The media does this by airing idiots and con artists who mislead and confuse the audience.

By engaging in "journalistic fraud," the media steers its audience into the arms of its advertisers because the audience is now misled and confused.

The financial media sets up the audience so that they become needy after having lost large amounts of money listening to their "experts." Desperate for professional help, the audience contacts Wall Street brokerage firms, mutual funds, insurance companies, and precious metals dealers that are aired on financial networks. This is why these firms pay big money for adverting slots in the financial media.

We see the same thing on a more obvious note in the so-called "alternative media," which is really a remanufactured version of the "mainstream media." Do not be fooled. There is no such thing as the "alternative media."  It really all the same. 

In order to be considered "media" you must have content that has widespread channels of distribution. Thus, all "media" is widely distributed.

And the same powers that control the distribution of the so-called "mainstream media" also control distribution of the so-called "alternative media."

The claim that there is an "alternative media" is merely a sales pitch designed to capture the audience that has since given up on the "mainstream media."  

The tactic is a very common one used by con men.

The same tactic is used by Washington to convince naive voters that there are meaningful differences between the nation's two political parties.

In reality, both parties are essentially the same when it comes to issues that matter most (e.g. trade policy and healthcare) because all U.S. politicians are controlled by corporate America. Anyone who tells you anything different simply isn't thinking straight.

On this site, we expose the lies and the liars in the media.

We discuss and reveal the motives and track record of the media’s hand-selected charlatans with a focus on the financial media.  




 

Why Stathis Was Banned

To date, we know of no one who has established a more accurate track record in the investment markets since 2006 than Mike Stathis.  

Yet, the financial media wants nothing to do with Stathis.  

This has been the case from day one when he was black-balled by the publishing industry after having written his landmark 2006 book, America's Financial Apocalypse

From that point on, he was black-balled throughout all so-called mainstream media and then even the so-called alternative media. 

With very rare exception, you aren't even going to hear him on the radio or anywhere else being interviewed.  

Ask yourself why. 

You aren't going to see him mentioned on any websites either, unless its by people whom he has exposed.  

You aren't likely to ever read or hear of his remarkable investment research track record anywhere, unless you read about it on this website.

You should be wondering why this might be.

Some of you already know the answer.

The media banned Mike Stathis because the trick used by the media is to promote cons and clowns so that the audience will be steered into the hands of the media's financial sponsors - Wall Street, gold dealers, etc. 

Because the media is run by the Jewish mafia and because most Jews practice a severe form of tribalism, the media will only promote Jews and gentiles who represent Jewish businesses.  

And as for radio shows and websites that either don't know about Stathis or don't care to hear what he has to say, the fact is that they are so ignorant that they assume those who are plastered throughout media are credible.

And because they haven't heard Stathis anywhere in the media, even if they come across him, they automatically assume he's a nobody in the investment world simply because he has no media exposure.  And they are too lazy to go through his work because they realize they are too stupid to understand the accuracy and relevance of his research. 

Top investment professionals who know about Mike Stathis' track record have a much different view of him. But they cannot say so in public because Stathis is now considered a "controversial" figure due to his stance on the Jewish mafia. 

Most people are in it for themselves. Thus, they only care about pitching what’s deemed as the “hot” topic because this sells ads in terms of more site visits or reads.

This is why you come across so many websites based on doom and conspiratorial horse shit run by con artists.

We have donated countless hours and huge sums of money towards the pursuit of exposing the con men, lies, and fraud.

We have been banned by virtually every media platform in the U.S and every website prior to writing about the Jewish mafia.

Mike Stathis was banned by all media early on because he exposed the realities of the United States.

The Jewish mafia has declared war on us because we have exposed the realities of the U.S. government, Wall Street, corporate America, free trade, U.S. healthcare, and much more.

Stathis has also been banned by alternative media because he exposed the truth about gold and silver. 

We have even been banned from use of email marketing providers as a way to cripple our abilities to expand our reach. 

You can talk about the Italian Mafia, and Jewish Hollywood can make 100s of movies about it.

BUT YOU CANNOT TALK ABOUT THE JEWISH MAFIA.

Because Mr. Stathis exposed so much in his 2006 book America's Financial Apocalypse, he was banned.

He was banned for writing about the following topics in detail: political correctness, illegal immigration, affirmative action, as well as the economic realities behind America's disastrous healthcare system, the destructive impact of free trade, and many other topics. He also exposed Wall Street fraud and the mortgage derivatives scam that would end of catalyzing the worst global crisis in history. 

It's critical to note that the widespread ban on Mr. Stathis began well before he mentioned the Jewish mafia or even Jewish control of any kind.

It was in fact his ban that led him to realize precisely what was going on.

We only began discussing the role of the criminality of the Jewish mafia by late-2009, three years AFTER we had been black-listed by the media.

Therefore, no one can say that our criticism of the Jewish mafia led to Mike being black-listed (not that it would even be acceptable).  

If you dare to expose Jewish control or anything under Jewish control, you will be black-balled by all media so the masses will never hear the truth.

Just remember this. Mike does not have to do what he is doing. 

Instead, he could do what everyone else does and focus on making money. 

He has already sacrificed a huge fortune to speak the truth hoping to help people steer clear of fraudsters and to educate people as to the realities in order to prevent the complete enslavement of world citizenry. 

  

Rules to Remember

Rule #1: Those With Significant Exposure Are NOT on Your Side.  

No one who has significant exposure should ever be trusted. Such individuals should be assumed to be gatekeepers until proven otherwise.  I have never found an exception to this rule.

Understand that those responsible for permitting or even facilitating exposure have given exposure to specific individuals for a very good reason. And that reason does not serve your best interests. 

In short, I have significant empirical evidence to conclude that everyone who has a significant amount of exposure has been bought off (in some way) by those seeking to distort reality and control the masses. This is not a difficult concept to grasp. It's propaganda 101.   

Rule #2: Con Artists Like to Form Syndicates.

Before the Internet was created, con artists were largely on their own. Once the Internet was released to the civilian population, con artists realized that digital connectivity could amplify their reach, and thus the effectiveness of their mind control tactics. This meant digital connectivity could amplify the money con artists extract from their victims by forming alliances with other con artists.

Teaming up with con artists leads to a significantly greater volume of content and distraction, such that victims of these con artists are more likely to remain trapped within the web of deceit, as well as being more convinced that their favorite con artist is legit. 

Whenever you wish to know whether someone can be trusted, always remember this golden rule..."a man is judged by the company he keeps." This is a very important rule to remember because con men almost always belong to the same network.  You will see the same con artists interviewing each other,referencing each other, (e.g. a hat tip) on the same blog rolls, attending the same conferences, mentioning their con artist peers, and so forth.

Rule #3: There's NO Free Lunch.  

Whenever something is marketed as being "free" you can bet the item or service is either useless or else the ultimate price you'll pay will be much greater than if you had paid money for it in the beginning. 

You should always seek to establish a monetary relationship with all vendors because this establishes a financial link between you the customer and the vendor. Therefore, the vendor will tend to serve and protect your best interests because you pay his bills. 

Those who use the goods and services from vendors who offer their products for free will treated not as customers, but as products, because these vendors will exploit users who are obtaining  their products for free in order to generate income.   

Use of free emails, free social media, free content is all complete garbage designed to obtain your data and sell it to digital marketing firms.

From there you will be brainwashed with cleverly designed ads. You will be monitored and your identity wil eventually be stolen. 

Fraudsters often pitch the "free" line in order to lure greedy people who think they can get something for free. 

Perhaps now you understand why the system of globalized trade was named "free trade." 

As you might appreciate, free trade has been a complete disaster and scam designed to enrich the wealthy at the expense of the poor. 

There are too many examples of goods and services positioned as being free, when in reality, the customers get screwed.  

Rule #4: Beware of Manipulation Using Word Games. 

When manipulators want to get the masses to side with their propaganda and ditch more legitimate alternatives they often select psychologically relevant labels to indicate positive or negative impressions.

For instance, the financial parasites running America's medical-industrial complex have designated the term "socialized medicine" to replace the original, more accurate term, "universal healthcare." This play on words has been done to sway the masses from so much as even investigating universal healthcare, because the criminals want to keep defrauding people with their so-called "market-based" healthcare scam, which has accounted for the number one cause of personal bankruptcies in the USA for many years.  

When Wall Street wanted to convince the American people to go along with NAFTA, they used the term "free trade" to describe the current system of trade which has devastated the U.S. labor force.

In reality, free trade is unfair trade and only benefits the wealthy and large corporations.

There are many examples on this play on words such as the "sharing economy" and so on.  

Rule #5: Whenever Someone Promotes Something that Offers to Empower You, It's Usually a Scam.

This applies to the life coaches, self-help nonsense, libertarian pitches, FIRE movement, and so on.

If it sounds too good to be true, it usually is.

Unlike what the corporate fascists claim, we DO need government.

And no, you can NOT become financially independent and retire early unless you sell this con game to suckers.  

Rule #6: "Never argue with stupid people. They will drag you down to their level and then beat you with experience." –Mark Twain

Following this rule is forcing the small and dewindling group of intelligent people left in the world to cease interacting with people. 

You might need to get accustomed to being alone if you're intelligent and would rather not waste your time arguing with someone who is so ignorant, that they have no chance to realize what's really going in this world. 

It would seem that Dunning-Kruger has engulfed much of the population, especially in the West.     

Start Here

SEC Shame

Many of you who have followed me and read my most recent books (The Wall Street Investment Bible/2009 and America’s Financial Apocalypse/2006 & 2007) know that I feel the SEC is beyond useless. In my opinion, the agency works for Wall Street.

As a financial professional and former direct employee working for Wall Street, I saw how they operate. They pick on the little guys; the brokers who often commit minor violations that affect very few, while turning their heads away from the biggest criminal activities affecting most if not all investors. In this manner, the SEC creates the impression that they are doing their job and that they are competent.
 
This could not be further from the truth. In the best of situations, SEC officials only act once outsiders deliver evidence of fraud, as was the case of thousands of corporate scandals, including the back-dated options mess, after hours trading by mutual funds, and many others. In the worst of cases, they allow massive fraud to continue despite several years of warnings from outside experts, as was the case with Bernie Madoff’s Ponzi scheme.
 
But the shame at the SEC continues to mount. Last year, the SEC Inspector General issued a report that found SEC employees watching porn, trading stocks and other alarming activities while at work. This is just one of the reasons why the SEC rarely catches the really big cases of securities fraud. See here
 
Right around the same time last year, the SEC charged Mark Cuban with insider trading. See here
 
Cuban claimed that these allegations served as a means of retaliation due to his criticisms of the SEC. While I am certainly no fan of Cuban, I would tend to agree with his claims. Cuban reacted in his predictable manner, lashing out at the SEC, and claiming they were the ones guilty of insider trading.
 
But was this just another example of Cuban's typical theatrics, or was he on to something? Despite any differences in opinion I may have with Cuban on other matters, and despite what I may think of the man, based on what I have seen, we share similar opinions regarding the SEC. And based upon my knowledge of how the SEC operates, I would have to give Cuban the benefit of the doubt regarding SEC allegations of insider trading.
 
Ironically, just a few days ago, the Inspector General issued another report detailing allegations of insider trading by two SEC attorneys.  See here
 
Regardless of the outcome of Cuban's case with the SEC, it looks as if he has been vindicated in voicing his valid claims of hypocrisy of this agency. Either way, Cuban wins.
 
For several years now, I myself have made many calls the SEC officials to voice my concerns and raise criticisms about the incompetence and negligence of the agency. I have also made numerous complaints regarding violation of securities laws. Yet, nothing has been done. Despite these discouraging results, I continue my efforts to this day. I would say that many attorneys know me by name.
 
I even addressed the problems at the SEC briefly in my 2006 book America’s Financial Apocalypse.
 
“And of course we cannot forget the SEC, which focuses most of its efforts on small-time crimes as a way to create the perception that it’s policing the securities markets. Widespread fraud continues at the highest levels on Wall Street and corporate America on a daily basis. In almost every major case of Wall Street and corporate fraud, the SEC has acted only as a reactive investigator after someone else discovered the deceit. This has been true in the accounting scandals with Enron and WorldCom, hundreds of other accounting scandals, stock options backdating, mutual fund and market maker trading fraud, and virtually all other scandals that affect millions of shareholders. 
Rather than focusing on the major crimes, such as illegal activities of market makers, fund managers and traders, floor traders, Wall Street firms, and corporate insiders, the SEC operates with the mentality of ‘You might be doing something wrong but don’t let us know about it or we will investigate.’
The SEC should be constantly probing head figures that influence the capital markets because they’ve been getting away with criminal activities for decades. The passage of the Sarbanes-Oxley Act has had only a minor impact, with much more bark than bite. The fact is that things haven’t changed and they probably never will. It’s still business as usual on Wall Street. As with everything else in America, big money makes and breaks the rules.”
 
I continue:
 
“Because companies know better than anyone what their short-term fate will be, they are truly the ultimate insiders. Corporate treasury departments can time the purchase and sale of their stock as long as they abide by certain minimal restrictions mandated by the SEC. Hence, unknowingly, shareholders lose when companies purchase treasury stock.  Yet, the SEC has allowed this practice ever since inception.
As well, there are very few restrictions for insider purchases of company stock. Don’t you think CEOs and CFOs know their company’s business prospects over the next few years? Of course they do. But the holding period for stock options execution is remarkably short. This legalized insider activity by has accounted for the bilking of billions of dollars from investors. Yet, in most cases, the timely liquidation of stock options is transacted legally, although representing an unfair advantage and what I consider legalized insider trading.”
 
 
Finally, in October 2008, I submitted a (not yet publicly released) formal complaint to the SEC regarding insider trading (the most blatant case I have seen in my career) and illegal shorting of Washington Mutual by certain large banks and hedge funds via the prime brokerage units of these banks. At the end of this report, I made my criticisms of the SEC clear.
 
Just a couple of months later, Madoff’s Ponzi scheme was exposed, but of course not by the SEC. I present my closing statement to the SEC from this report.
 
 
Recommended Directives for the SEC
 
“I will be submitting a proposal to the next presidential administration and other agencies regarding my recommendations for needed changes to the SEC. Among these changes, briefly:
 
  • Whistle blower laws that apply to employees of corporations should be included and fully encouraged by everyone in the financial industry. All suspected illegal activities or investigative studies submitted by financial professionals should qualify for blanket protection from retaliation. The SEC should provide measures which encourage whistle-blowing for those who see fraudulent activities. And a monetary award should be provided for successfully changed cases. This is will serve as a very helpful force towards the SEC’s mission of enforcement of all securities laws.
 
  • Future SEC Chairmen need to be enforcement officials rather than politicians. They must be detached from the White House and given the leverage to act on parties thought to represent the most damaging levels of fraud. This means they should be proactively monitoring all market makers and floor traders on a daily basis, rather than waiting for ten years before an outside party discovers foul play. This is something expected by the American people and it is mandated by interpretation of the Securities and Exchange Laws of 1933, 1934 and others since then.  
 
  • It is obvious that the SEC has been intentionally structured to keep its key staff buried in paperwork and bureaucracy, preventing them from serving as an investigative and enforcement arm of the securities industry. Throughout the years speaking with numerous staff members, they have informed me that they feel powerless to take a more proactive role. In many cases, they have also expressed frustration after having many needed reforms being pushed into a closet, never to be seen again. It is obvious to me that Chairman Cox knows well what is going on and while he may not be responsible for the designed incompetence of the agency, if he were an honorable man he would have resigned shortly after realizing the hypocrisy that know characterizes the SEC.
 
  • As a partial solution to overcome the bureaucratic barriers that hinder the efforts of the staff, the SEC should create a fund dedicated to compensating industry experts who submit credible issues of fraud. As well, these experts should be contracted for hire on certain cases as needed by the SEC. Each submission should be held accountable to an agency outside of the SEC such as the Department of Justice to ensure that it receives the proper consideration. I continue to be shocked at the lack of understanding SEC attorneys have of the illegal activities I observe in the capital markets. Most likely, they are being micromanaged so they are unable to see anything other than the task that is laid out before them. 
 
  • Ultimately the SEC has failed to protect investors from massive fraud that has been a daily occurrence for over a decade now. Thus, a radical restructuring is necessary. Ultimately, the SEC should be overseen by an organization that is disconnected from Washington politics to ensure those in charge are held to the highest standards, remain committed to serve the original intended missions of the SEC, and are held accountable for their actions or lack thereof. Obviously, such a proposal would be viewed by SEC officials as a threat to their authoritative responsibilities. As a result, I would not expect this recommendation to receive any level of serious consideration. Asking an agency to create an independent party to oversee its actions and hold its officials accountable is not something one can expect in America. Therefore, I will be forwarding the details of this and all other recommendations to other government agencies, watch dog groups, etc. 
 
  • The SEC must hold corporate executives and others fully accountable for fraud, neglect of duties, and other practices. Already, thousands of individuals escaped criminal and even civil prosecution from the events surrounding the dotcom collapse just a few years ago. It appears as if the same thing is going to happen with the current real-estate/banking collapse. This is a complete farce. Today, the SEC resembles the FDA, both serving the interests of the industries they are supposed to police.
 
  • Media firms that engage in a certain amount of financial news and commentary should be regulated by SEC regulations in a manner similar to broker-dealers since they are receiving indirect payments (via ad revenues and favors) from those who deal in securities (analysts, fund managers, etc.) as well as those who are also directly involved in the securities markets (corporations via ad revenues – i.e. interviews with CEOs, etc.). 
 
  • The mutual fund industry is still largely unregulated. I can cite numerous situations whereby investors are exposed to illegal sales and marketing practices, excessive fees are charged but customers are not aware of them, etc. The SEC must begin to regulate mutual fund companies on a level that is meaningful. These regulatory activities should be focused on marketing and advertisements. I can list numerous examples of what I would consider unfair business practices at best and illegal activities at worst by the mutual industry. I shall save this for a separate report to be composed at a later date. 
 
  • The SEC should regulate all radio, television and print advertisements by mutual funds, Wall Street firms, online brokers, insurance companies offering investment products. The SEC must understand and acknowledge the media is serving as a quasi-broker/dealer is receiving advertisement revenues in exchange for providing a venue for investment analysis and advice. The associations are clear. And I have spoken to several SEC attorneys who agree fully with my position. The most blatant examples are to be found on CNBC and Fox Business Network. 
 
  • These changes will obvious require a considerable source of new funding. The staff will need to increase by at least 3-fold. The money will come from fees assessed to investment firms.
 
  • A new division should be created that focuses only on investigations of politicians, who use their power to influence the success of publicly traded corporations for which they are shareholders. A recent example of such an arrangement is that between House Majority Leader, Nancy Pelosi, D-CA and T. Boone Pickens. Upon pushing his wind power plan throughout Washington, Mr. Pelosi was somehow able to purchase $100,000 of Mr. Picken’s natural gas IPO company CLNE. This is just one of many episodes of clear conflict of interest. In my opinion, this goes well beyond insider trading.
 
  • The arbitration process needs to be revised. The SEC needs to work with the NASD (FINRA) and each exchange to ensure that the process is fair. I am prepared to go into detail regarding the problems and solutions for arbitration at a later date.
The class-action securities litigation process is nothing short of a ludicrous. It has been designed only to favor the attorneys. Although I have been able to participate in numerous class-action awards, I have not bothered to do so because the amount of time needed to fill out the paperwork and confirm the dates of purchase etc. is nowhere near worth the amount of money I would receive. 
 
‘The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.’
 
It is clear that the SEC has continued to fail at its mission for decades. It is time for the SEC to be revamped. Americans have been exploited and defrauded for too long. Let’s be honest. The SEC has become a complete joke. And I for one will not tolerate it anymore. And I know I speak for all taxpayers. Together, we fund the SEC. We fund your paychecks. You are public servants to taxpayers, not the crooks you protect.  This is not a message to the staff so much as it is to the executives of the SEC. I have always had very favorable encounters with every staff member from the SEC, from the receptionists to the attorneys. But their efforts are limited by the decision-makers.”
 
 
Since that time, I have heard nothing of the allegations I made. I did receive a follow-up phone call from two SEC attorneys to discuss the complaint, but nothing else beyond that. I do not expect the allegations I made to ever be exposed. In fact, SEC officials refused to provide me with critical data that would prove the allegations I made in my report.
 
The SEC has a perfect system in place whereby they ultimately determine what cases to pursue. And there is no accountability from outside parties. So they can sweep anything under the rug and investors will not know the difference.
 
Despite my initial commitment to forward a more detailed report regarding changes needed at the SEC to the Obama Administration, I have since decided against this as I feel it would a further waste of my time. What was the deciding factor? Obama’s appointment of Mary Shapiro as the new SEC Chairman. Shapiro has along history of working as a top official in the securities regulatory arena, so she knows how the game is played. In other words, you should expect the same status quo from the SEC.  
 
 
 
 
 

 

Print article

Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher.

These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.

Article 19 of the United Nations' Universal Declaration of Human Rights: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.

This publication (written, audio and video) represents the commentary and/or criticisms from Mike Stathis or other individuals affiliated with Mike Stathis or AVA Investment Analytics (referred to hereafter as the “author”). Therefore, the commentary and/or criticisms only serve as an opinion and therefore should not be taken to be factual representations, regardless of what might be stated in these commentaries/criticisms. There is always a possibility that the author has made one or more unintentional errors, misspoke, misinterpreted information, and/or excluded information which might have altered the commentary and/or criticisms. Hence, you are advised to conduct your own independent investigations so that you can form your own conclusions. We encourage the public to contact us if we have made any errors in statements or assumptions. We also encourage the public to contact us if we have left out relevant information which might alter our conclusions. We cannot promise a response, but we will consider all valid information.


0:00
0:00