9 December, 2019

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Share Market Mafia: All These Acts Are Done Under The Pretext Of Sinhala Patriotism

By Vickramabahu Karunaratne –

Dr. Vickramabahu Karunaratne

One does not go to a share market merely to get dividends, where a company distributes a proportion of its annual earnings to the shareholders. Dividends at all times are distributed as a percentage of the nominal/par value of a share. In a sense there is no need of an organised share market for redistribution of shares of an establish company. Hence the real purpose of a share market is capital gains-this is where an investor makes a gain by buying at a lower price and selling at a higher price. The price of a share is chiefly determined by the earnings of the company.  If a company makes net profit continuously the demand for the share will appreciate causing the share price to rise. By investing in growth companies over a long investment horizon, will certainly give higher returns than many fixed income securities. All economics admit that some speculation is necessary and unavoidable, for in many common-stock situations, there are substantial possibilities of both profit and loss, and the risks therein must be assumed by someone. Thus, many long-term investors, even those who buy and hold for decades may be classified as speculators, excepting only the rare few who are primarily motivated by income or safety of principal and not eventually selling at a profit.

Speculating is the assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. Free market economics maintain that speculation implies that a business or investment risk can be analyzed and measured, hence it is not based on luck by chance; probability could be estimated. There fore   its distinction from the term Investment is one of degree of risk. But not only Marx but also Keynes rejected this view and classified speculation in share market as a form of gambling, which is based on random outcomes. Even if one has the knowledge of the market variations and predicts the ups and downs of the share market, he will get repulsed if the shares are manipulated. No gambler will risk his money in a den where the dice are loaded. Thilak has given the warning to all investers about the Lanka stock market by resigning and explaining why he had to resign. Thilak was one year junior to me at college but we were both members of the senior cadet platoon that won both the Herman Lose and the Millers cup. I do not agree with his politics but I know him as an honest person. Not even Mahinda Raj can push him around as he doing to others.

It is clear that the Colombo Stock Market must be freed from undue influence and manipulations to woo investors which are essential for market growth, in free market economy. This failure shows that Mahinda regime is loosing  faith of local bourgeoisie as well. The Chairman of Sri Lanka’s Securities and Exchange Commission (SEC) Thilak Karunarathne who tendered his resignation said that he decided to resign due to pressure. It is clear that this was due to the immense pressure from pro Mahinda investors whose transactions are being probed by Thilak for securities fraud. He told the media that some brokers and investors had become so powerful as to influence his resignation. The SEC has been probing ‘pump and dump’ deals where weak stocks were driven up and sold to small investors during a stock market bubble fired by lower interest rates and liquidity from margin loans. In other words the SEC is not even a gambling join but a place were investers are plundered by set of crooks organised by the regime. This is parallel to the attack on provident fund of the private sector workers. All these acts are done under the pretext of Sinhala patriotism and saving motherland from traitors. But the problem for the masses is that the savior has become the centre of corrupt ion and out right plunder. We have to unite disregarding class differences to fight for freedom and democracy.

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    MR and the family clan Jack of all crooks….master of none. Sorry sir your recipes are copied and revealed.It’s time to play the game correct or get out.

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      All the crooked deals of the crooked president of Lanka and his family and cronies are protected by a paramilitary outfit named Rakna Lanka which is really a private militia for the Rajapakse family dictatorship. The Rakna Lanka paramilitary outfit that protects the criminal family that runs the country MUST BE SHUT DOWN.
      Rakna Lanka militia is a means to intimidate and silence critical voices and exposure of the endless crimes of the regime and its looting of public wealth and assets.
      The existence of Gota the great goon’s private militia is very dangerous for democracy and it is a total waste of tax payers’ money given that it is subsidized by state coffers… and the education sector which needs to pay a private militia for university students to undergo military training! What a bloody joke of the highest order when the state cannot even afford to keep the universities functioning!

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    There are many critics on Internet fora, of the established system in Sri Lanka.

    The average person on the street can also assuage the progress or otherwise, of his welfare in terms of socio-economic phenomena when he compares his vital statistics over a span of say ten years (ie from 2002 to 2012)and decide for himself if he and his family are better or worse off, where all his personal circumstances have been subject to change.

    Yet, the critics of individual phenomena like the performance of a share market opt to see only that institution in isolation rather than connect all relevant criteria like rates of exchange,import/export ratios, average productivity, life expectancy,job security, affordability of housing or private transport, healthcare facilities from publicly funded hospitals or standard of education provided by public institutions and their administrative policies.

    Writers must strive to engage with these criteria so that the real reasons for failure can be demonstrated more effectively, rather than be tempted to merely find fault with individuals in positions.

    Economics, after all, are more to do with people than simple economic activity in an artificially constructed setting.

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    Spot on Bahu!
    Patriotism, ‘development’ and ‘security’ are concepts that have been distorted and given a new meaning by the Rajapakse regime and its spinners in order to cover up their economic and financial crimes (never mind the war crimes), of looting, land grabbing and in-debting Sri Lanka for generations to come..

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    Dr Vick,

    Your analysis is eye opener for us to understand what’s the SEC mean. Why none of the so-called economists do not explain it in such a simple way? In my opinion this is a legal gambling.

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      Yes, everything is correct until he said , ” All these acts are done under the pretext of Sinhala patriotism and saving motherland from traitors.”
      How does he come to this conclusion ??? He just returned from India after taking part against Sri Lanka in a LTTE remnants organized rally! His opinion does not count for me!

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    In the leading and successful Stock Markets of the world two of the evils avoided like the bubonic plague are (1) insider-trading (2) the pumping and dunmping racket. The safety valves zealously put in place by the Govts in concerned are more aimed at protecting the large majority of small investors. But here, it appears to be other way around. A group of notorious and dubious racketeers, with collusion from the ruling elite who are sufficiently fed from the spoils, have made and are making billions from the subverted Stock market. Thousands of small and innocent investors have lost their savings, pensions and assets believing the Magicians of the Govt Economy – Governor Nivaard Cabraal -and Dr Jayasundera falsely claiming ours is the “best (and therefore honest) Stock Market in the world” No wonder more overseas investors and FDI is conspicous by their absence. Very soon, we will learn many State banks have been cleaned out by these racketeer investors who trade on Bank credit.

    Senguttuvan

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    Mr Bahu,New trend of Capitalst developement in Sri lanka, objective pre-conditions are maturing more rapidaly develop Catpital and stock market in Colombo.We are in new politicial process of golbilization of modern world.The dominion of the bourgeoise and capital are the rooted in the economy-political-social system of conditions of production and exchange.That the class struggle of working class had grown remakebly towards end of 20th century and begiging of 21st century a natural result of growth of Imperlism and hegominism of capitalism.
    The freedom of Capitalism according to Engels “joinstock capital and emenrgancy of monoplies in the form of cartel and trust…the market situation ,all its possible fluctuations had to be taken into account….freedom of competition change into its very opposite—into MONOPLY.”Certianly this is so far still to the benfit and advantage of the capitalits. And futher THE STOCK EXCHANGE of which Engels mention,had time only produce a brife sketch..main peculiatities of the capilist economy.
    Dr Bahu end of essay said, your classmaid of Tilak K ,you are going to join with him ‘we have to unite disregaring clsss differance to fight for FREEDOM AND DEMOCRACY’I will end my few lines end with Engales word….”finest fruit of bourgeois socity,as the hearth of extreme CORRUPATION,as hothouse of the Panama and other scandlas—and therefor also an an excellent medium for the concertration of capital..” Capital vol 111 p 908.
    The stock exchange ..not just in its mechanism.It is a specific capitalist institution and it is also a peculiar symbol of the dominion of BIG CAPITAL.of merciless expolitation.You as Left-orinted politician ,how can you join hand with your clssmaid represtantaive Big capital having collbration for united struggle Freedom and Democracy for people of Sri Lankan.

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    All Sri Lankan know that Vikranbahu is [Edited out]
    So, no Sri Lankan should take seriously what he is taking about; [Edited out]

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