Reply #100: Don't forget the broken window fallacy. It's just like the "war is good

[54anickel]

for the economy" mentality. See post 72. Then there's this LBN thread out there

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1741150

Katrina securities scams hit investors

WASHINGTON (Reuters) - Financial fraudsters are already hitting investors with post-Hurricane Katrina stock scams tied to speculation about spiking energy prices, U.S. market regulators warned on Wednesday.
After catastrophes like Katrina, fraudsters often rush to repackage old schemes around the latest sensational headlines, said the U.S. Securities and Exchange Commission.

"Already we are seeing e-mails touting stocks on the basis of hurricane activity in the Gulf (of Mexico)," said Susan Wyderko, director of the SEC's Office of Investor Education.

"Unfortunately, disasters always bring out scammers who prey on human suffering," she said in an interview.

One spam e-mail making the rounds on the Internet refers to "a spate of refinery glitches and an unusually active hurricane season" and says investors could more than double their money in just days on certain penny stocks, the SEC said.