Do you remember when this WAS America?

[Dr.Destructo]

Do you remember when the 70s were geared for believing we could all get along and we all needed to be one world, not separate egos.

 

[EvilCat Breath]

Do you remember when the 70s were geared for believing we could all get along and we all needed to be one world, not separate egos.

Then we met the people we thought we could get along with.

 

[Zincwarrior]

Way better than the fifties and sixties. Except for Disco and fashion of course.
And Vietnam

And stagflation

 

[80zephyr]

The liberals then were a much smaller group, pleading with us to "go along to get along".

And we did. And as their group grew, they quit asking and started demanding. "Go along to get along" only

works in one direction with the left.

 

[Moonglow]

Do you remember when the 70s were geared for believing we could all get along and we all needed to be one world, not separate egos.

Then came the 1980s, and they turned into yuppies buying penny stocks

.
The 1980s were a particularly notable time for penny stocks, characterized by both frenzied investment and widespread fraud.
1. A "Financial Wild West":

• The penny stock market in the 1980s was described as a "financial Wild West" due to rampant fraud and manipulation.
• "Boiler room" operations, such as Blinder Robinson ("Blind'em and Rob'em"), First Jersey Securities, Rooney Pace, and Stuart-James, were dominant players, using high-pressure sales tactics to push low-priced stocks.
• These tactics often involved artificially inflating stock prices (pump-and-dump schemes) and then selling at a profit, leaving investors with losses.

2. Fueling a "Gold Rush":

• During 1979 and 1980, penny stocks (initially defined as stocks trading for less than $1) experienced a "modern-day gold rush" as investors speculated on new companies.
• Brokerage houses specializing in the penny market sprang up, particularly in locations like Denver and Salt Lake City.
• Some stocks, such as those of energy companies in the early 1980s, saw rapid price increases, further fueling this speculative frenzy.

3. Fraud and Manipulation:

• Fraudulent schemes were prevalent, with brokers often using manipulative sales campaigns and hiding commissions.
• The SEC and the Denver district attorney's office became aware of the high-pressure sales tactics used by penny stock brokers.
• ZZZZ Best: This carpet cleaning company, which claimed to be building a multi-million dollar corporation, turned out to be a fraud based on forgery and theft. It went public in 1986 and reached a significant market capitalization before the scheme unraveled.
• Lorenzo Formato: Formato was involved in penny stock manipulations, including the Worldwide Ventures Corp. and Laser Arms Inc., which falsely claimed to have invented a self-chilling beer can.

4. Regulatory Response:

• In response to widespread fraud in the 1980s, the SEC broadened its definition of penny stocks to include those trading below $5 per share.
• The Penny Stock Reform Act of 1990 addressed concerns about fraud and abuse by requiring broker-dealers and issuing companies to disclose information about penny stocks.
• The act also mandated measures to increase investor disclosure, including requiring brokers and dealers to provide risk disclosure statements for penny stock transactions.

5. Lessons Learned:

• The penny stock frenzy of the 1980s offers valuable lessons about market speculation and the risks involved in investing in highly volatile securities.
• It highlights the importance of thorough research and due diligence before investing, particularly in companies with limited trading history or questionable fundamentals.
• The regulatory changes that followed the 1980s demonstrate the ongoing efforts to protect investors from fraudulent practices in the penny stock market.

In essence, the 1980s marked a period of both significant opportunity and considerable risk in the penny stock market. The era was characterized by high-pressure sales tactics, manipulative practices, and notable cases of fraud, ultimately leading to increased regulatory scrutiny and a revised definition of penny stocks by the SEC.

 

[the watcher]

"Freedom's just another word for nothing left to lose. Nothin' ain't worth nothin, but it' free" Bobby McGoo