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It occurs to me that two other governmental roles besides the one I have mentioned here in the past few weeks have played havoc this year with shareholder equity values, and thus of SIRI. The first is that of the DOJ in trying to break up Microsoft. That attempt, causing many investors to lose large dollar value in Microsoft, with the ripple effect of downward abuse on the equity markets in general this year, is now being rectifiied by the Appealate Court of the United States. However, the DOJ lawyer who brought this suit against Microsoft, a careeer civil servant, will have no worry about maintaining his position at DoJ, the losses he caused investors notwithstanding. Mr. Kline will keep his job.

The second governmental role to cite is that of the Department of Energy, which has been profoundly unable to remind OPEC who it was that saved it from ruination just a decade ago. Prices at the pump have effectively tripled since the current Administration wrested power, by a plebiscite, from George Bush. Of course, the bureaucrat who runs Energy will not be asked to leave for his stewardship over the price devestation for many of fossil fuel-- Los Alamos will be, perhaps, his cause for dismissal.

All in all, then, three governmental factors in the year 2000 have brought SIRI's price appreciation to a forcible reversal from $69-- a price achieved, I believe, on March 10th of this year. The $69 price was the result of the natural mechanism of markets discounting future cash flow to the present. Markets do this when they are allowed to work unencumbered by outside intrusions. When outside intrusions are given free reign, market mechanisms are sotted, and the investor loses.

These outside intrusions have been from the Federal Reserve (whose ineptitude here has been mentioned by me as it relates to shareholder wealth in the equity markets, the Antitrust Division of the Department of Justice (as it relates to Microsoft, and now an Antitrust Division whose judge advocate, T. Penfield Jackson, will have his ruling on Microsoft reversed en banc, and the US Department of Energy (which, tin cup in hand in April asking for OPEC relief, does not remind one of the Reagan way of handling adversarial foreign pricing).

All this (FRB crippling, Microsoft DoJ abuse, and Energy's failure to stop foreign energy price gouging) has comined since March, remarkably enough.

The lesson? Free markets, with no intrusions from government, continue to be a myth in this country, and makes one wonder why it is even taught at all as policy of the United States. It is not policy, and SIRI's price is a reflection of it not so being such a policy. SIRI's price is a reflection of what happens when government intervenes (that intervention pointed out here in three instances) in markets-- the investor loses money.
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