THE GREATEST CRIME IN HISTORY
Posted July 16th, 2008 by LibBerte
output
I have been watching this story unfold for some time and have decided to post now because the issue is starting to get attention as it builds towards climax.
This is where the action rises. You can fill in much of the plot line. You can imagine the antagonists.
I give you first this primer as prologue because it makes things a bit more comprehensible for those unfamiliar with the subject matter.
Now, to make a long story.... short:
Bookmark/Search this post with:
How Much Fraud Are You Willing To Accept For Liquidity?
http://www.investigatethe...
When Liquidity and Market Protections Clash - July 31, 2008
David Patch
As the SEC mulls over what actions next to take on short sale reforms, hedge fund lobbyists canvas Washington with threats in hand seeking for relief from fee induced rule making associated with a short sale trade.
According to reports, day-trading hedge funds are lobbying for the Commission to scrap all aspects of the pre-borrow rule in a short sale due to the cost increase such rule making will have on the overall short trade. Some of the more well known funds impacted would be a SAC Capital managed by Billionaire Steve Cohen, Citadel Investment Group managed by an equally wealthy Ken Griffin, and Kynikos Associates managed by mere millionaire James Chanos.
At issue is whether these large funds should have access to day-trade short equity stocks without the expense of paying a fee for the rights to sell what they do not possess. To state their case, these funds have hired former US Representative and former Chairman of House Financial Services Committee on Capital Markets Richard Baker now president of Managed Funds Associates.
Under present law, a typical short sale will consist of a locate prior to the trade being executed and only after the trade is executed is the seller obligated to seek out and borrow that share for delivery. In the present T+3 settlement system, this borrow is not required until the T+2 or T+3 trade date allowing several days ‘grey area’ where a sale is executed but what was sold is not in possession of the seller.
Should the SEC proposed rules of a pre-borrow become law, the short seller in this case would not be afforded this grey area and will instead carry the burden of cost to borrow from trade date until such time as the short sale is covered in the market. To the short seller who plans on making this short interest a long term trade investment the added days are trivial to the long term carrying costs of the stock borrow.
To the day trading funds the story is not so cut and dry.
Most recognize SAC Capital as this big elephant in the room that comes in and out of markets in fast trading succession. It is not about the company or the market; it is about the opportunity to trade on created volatility.
SAC Capital will sell short and cover huge volumes of stock in a single day profiting from the difference between the short sale and the covered costs. Trading such as this carries no burden cost of a stock borrow because the rapid trading is concluded, the position closed, well within the normalized trade settlement window.
SAC and others large funds anticipate that their presence in a market, with plenty of capital behind them, can create enough chaos to generate the volatility necessary to turn a profit. The initially short sales, in rapid succession, will create fear and panic as bids are raided and that fear and panic will drive investors out at which point the short sale is covered for a profit. This process is repeated over and over as the market equilibrium slowly falls.
The profit margins on a trade such as these can be huge as even with regards to hard to borrow stock, no borrow is necessary to execute the trade. Funds that trade in this manner have become market makers without the requirement to maintain order.
Funds that trade in this manner have the intent on creating market chaos.
Those that now lobby our members of Congress and Federal Regulators are crying foul on reforms that would have these trades incur the added expense of a stock borrow. The funds firmly believe that in doing so the cut in profit margins would be significant enough to make the trade risky.
Funds like SAC Capital and Kynikos don’t like to trade with risk.
The more basic issue Congress and regulators should be discussing is why such traders are afforded the opportunity to trade in this manner at the possible expense of the health of the capital markets and those who invest in these markets; To trade like market makers without the oversight of market makers.
On point, I do not consider a day trader who flips trades over the course of a few hours an investor. These traders are gamblers and when these gamblers are represented by funds the size of SAC Capital they come in carrying the house odds and not the gamblers.
Market makers are provided an exemption from the locate rule applied to a short sale in order to sell naked short for ‘bona-fide market making’ activities. While these activities are loosely defined, the market makers are intended to flatten out the instabilities in a market by taking on a contrarian trade to that of a sudden burst in one sided market sentiments. If the markets are suddenly being overwhelmed in selling the market makers will step in and create liquidity by buying shares and when buyers come in excess the market makers sell naked short to insure stability is maintained in the markets.
The market makers are regulated, weak as it may be, in this type of trade activity.
Hedge Funds are afforded no exemption and yet today, without the pre-borrow they trade essentially the same way. The difference however is that order is not the intention of their trade, chaos is.
Without the requirement to borrow that share located immediately after a trade is executed the short seller can re-use those shares multiple times in a single day and multiple times across multiple brokers. Because a short seller is required to locate only the share being used as a locate is nothing more than a bookmark. The fact that laws do not presently demand a stock borrow this allows the short seller to re-use the same share to sell a stock without paying any type of premium for the use of that share.
The intent of the short sale laws, in place for 60 years, is to make sure that what is being sold is being delivered and when selling something you are selling something within your possession to deliver; whether it by through a borrowed share at a fee or an actual share purchased. Never intended was to sell something you will never possess and profit from it.
As former Congressman like Richard Baker lobby for the rights of a short seller to act as a market maker freely and unregulated understand his efforts are not in the interests of the investing public who do invest for the long term [long or short] or for those public companies caught in the firestorm of these hedge funds.
The ability to day trade in and out of these markets through the use of computers has aided hedge funds in destroying confidence in public companies. Their actions are not transparent to the markets but their actions are the very actions that move them to where they go. These funds seek out an ounce of possible negativity in a market and make those in the market fear that it is something much worse through rapid naked shorts executed as day trades. By the time the investors realize what is happening their investments have collapsed and panic selling ensues. In the end it was the day trader that profited and the long investor who booked the loss.
Prior to the collapse of Bear Stearns and the near collapse of several other financial institutions this was an accepted behavior amongst regulators. Hedge Funds created liquidity, even if it was simply intra-day day trading, and liquidity was king. Now it is being recognized for what this liquidity really is, a means to manipulate markets.
In 2004 former Chairman William Donaldson spoke before Congress and asked “How much fraud are you willing to accept for liquidity”; Congress blinked. Today that very same question is being asked of Congress again and the jury is still out on whether they will again blink in the face of the investing public.
Fearing that the SEC is not capable of making the right decision on their own, it is imperative that Congress draft legislation that ties the hands of the agency and forces short sellers to have in their possession the very article for which they plan to sell. Nothing short of a pre-borrow will protect these markets from the predators of Wall Street; the billionaire hedge fund managers and their wealthy clients who simply need more.
Our Laws Seem to Be Imbalanced.
Millions are stolen on the market every day, yet someone can get thrown in jail for stealing a TV.
Related story!! Its Crimal!!
http://www.dailypaul.com/...
JonQ.Publik
Live Free or Die! Because if you are not free you’re dead already!
Mindboggling. Thank you LibBerte
and welcome again to the FWR
Dr. Paul cured my apathy
Mr. Byrnes
seems to be a very courageous man who should consider running for office. We need people like him. Peace
Patrick Byrne's Mythic Quest
http://www.sltrib.com/ci_...
Wall Street war: A win for Utahn
Byrne's battle helps bring curbs on naked short-selling practices
By Steven Oberbeck
The Salt Lake Tribune
Article Last Updated: 08/02/2008 03:00:20 PM MDT
Over the past several years, Patrick Byrne's campaign to clean up Wall Street and end a practice that has destroyed companies and cost unwary investors billions of dollars, generated plenty of publicity for him, mostly the wrong kind.
Critics labeled him nuts, a conspiracy theorist, a complete wack job.
Byrne, the chief executive of the Utah-based discount online retailer Overstock.com, even found himself tagged a member of the "tin-foil hat" brigade, a reference to the flying saucer fanatics of the 1950s who adorned their heads with aluminium to ward off, or enhance, thoughts from aliens in outer space.
These days, when people talk of Byrne, the word "vindication" comes up a lot.
"You can always tell who the pioneers are - they're the ones with all the arrows sticking out of their backs," said James Angel, a finance professor at Georgetown University. "You really can't understate what Byrne has accomplished."
Three years ago Byrne, believing Overstock.com's shares were under pressure from an illegal trading tactic known as "naked short-selling," launched a campaign to end the practice. He termed it his own personal "jihad," or holy war.
Short-selling is a legal practice in which brokerages allow investors to borrow and then sell a company's stock on the hope its price will drop. If that happens, investors then can buy back the stock at a lower price, pocket the profit and return the shares to the brokerages.
Naked short-selling takes place when investors sell stock without first borrowing it. In market parlance, the seller is "naked" those shares. The usual outcome is that it creates an artificially high volume of shares for sale, which can drive down a company's stock price.
In a naked short sale, the transaction is never truly completed because the short-seller doesn't really possess the stock that was sold. That means the seller cannot deliver the shares to buyers, which in market jargon is called a "failure to deliver."
Big victory: Byrne's biggest victory in his jihad came July 15 when the U.S. Securities and Exchange Commission issued an emergency order that prohibited naked short-selling in the shares of Fannie Mae, Freddie Mac and 17 large investment banks.
The fear was that aggressive short-selling could exacerbate the plunge in those company's share prices. The SEC goal was to stem the downward pressure on the shares by requiring short-sellers to actually borrow shares before selling them.
"Even though they [the SEC] would never admit it, Patrick Byrne helped instruct them in the danger. When the time came, they understood the threat," said Peter Chepucavage, a former attorney in the SEC's Division of Market Regulation now with the Plexus Consulting Group in Washington, D.C.
Byrne said he supports the SEC's emergency rule, which on Thursday was extended through mid-August. "What I don't understand is why the SEC is only addressing Fannie Mae, Freddie Mac and the large investment banks. Why should those companies be the only ones protected?"
Others want to know the same thing.
The American Bankers Association said it was "disappointed and deeply concerned" the SEC extended its order without including all publicly traded banks.
"We know it has been going on and that it's been harmful to share prices," said Carol Kaplan, a spokeswoman for the ABA, which indicated in an earlier statement that the failure to include bank stock in the ban could backfire and disrupt an industry that is essential to the function of the nation's economy.
"One of the big concerns we have is that depositors often can not distinguish the difference between a stock price dropping and the safety of their deposits and soundness of their bank," Kaplan said.
Extend ban: Byrne said he wants the ban on naked short-selling extended to all publicly held companies. He may be successful.
SEC Chairman Christopher Cox told Congress last week that a proposal expanding the order to cover all public companies will be introduced soon.
"Hundreds are clamoring for protection," Byrne said.
Still, not everyone is convinced that naked short-selling is a problem. In Barron's last week, editorial page editor Thomas G. Dolan wrote that "rather than fixing any of the real problems with the agency and its mission, Cox and his fellow commissioners waved a newspaper and swatted the imaginary fly of naked short-selling. It made a big noise, but there's no dead bug."
The editorial led Gary Weiss, a veteran New York-based financial journalist and author of Wall Street Versus America: The Rampant Greed and Dishonesty That Imperil Your Investments, to post a scathing comment about ByrnÂe on his blog.
"Byrne has said that the SEC's politically motivated pandering means that he has won the 'intellectual argument' on naked short-selling," Weiss wrote. "But there hasn't been an intellectual argument. There has been a campaign of intimidation and personal attacks against critics of his poor management of his company and his naked-shorting jihad."
Nothing new: The criticism linking Overstock.com's often disappointing earnings performance and Byrne's campaign against naked short-selling isn't new. It has been around since he started criticizing the growing number of "failures to deliver" that resulted from rampant naked short-selling.
"What they're saying is that if he only ran a better liquor store he wouldn't get robbed as much," said Byrne, whose campaign against naked shorting is detailed at www.deepcapture.com.
Throughout his campaign, Byrne said there really was only one moment when the criticism personally got to him. And that was when an old friend from high school sent him an e-mail stating that she remembered Byrne as a really nice guy.
"Then she mentioned about how she'd read about all the horrible things I was doing and how it appeared like I'd gone completely off the deep end," Byrne said. "It bothered me a little."
Byrne went on to speak about a trip he made to New York City in 2006 to see a well-known hedge fund manager, someone he had known for a decade.
"As we sat down he said, 'Patrick, I want you to know that you have become the most hated man I've ever known in all my life here in New York. Wall Street used to think so highly of you. You were kind of a golden boy. Now, you are despised more intensely than anyone I have ever known. You could kill people, and not be hated like they hate you in this town.' "
Byrne understands the ill will. He believes correcting the problem would cost billions and likely lead to the demise of many of the hedge funds he believes are actively engaged in naked shorting.
"When I think of what might happen to the financial system as a result of all of this, it just makes me sick. There is no joy in being right," he said. "It's going to be ugly."
But then there have been those who offered him encouragement when he needed it the most, he said.
Byrne said one man jumped onto an empty elevator as he was entering. "He said, 'Mr. Byrne, you don't know me, but I just want to tell you I support your fight. What you are talking about goes on every day around me. Don't quit. I can't be seen with you. Goodbye.' "
And he hopped off the elevator, Byrne said.
steve@sltrib.com
Patrick Byrne
* AGE: 45
* POSITION: Chief executive officer, Overstock.com
* PERSONAL: Ex-pro boxer who holds black belt in tae kwan do; cancer survivor who has bicycled four times across the United States, once to raise awareness for cancer research; speaks Mandarin Chinese, French and a bit of Thai.
* EDUCATION: Master's degree from Cambridge University; Marshall Scholar and doctorate in political philosophy from Stanford University.
* MENTOR: Billionaire investor Warren Buffett, who tutored teenaged Byrne in his principles of value investing.
Now that is what I would call heroic.
Thanks for this..... It's all connected.
ForBEARance
Like some archetypal figure from the great traditions of epic folklore, Patrick Byrne, CEO of Overstock.com, demonstrates his heart is stocked sufficiently with the internal strength and spirit necessary to sustain this heroic struggle to bring corrupt practices of Wall Street to public awareness and reform. May we hope… before systemic collapse.
http://www.deepcapture.co...
Sir, thank you for your courage, determination and poise.
FORBEARANCE
Gently I took that which ungently came,
And without scorn forgave :--Do thou the same.
A wrong done to thee think a cat's-eye spark
Thou wouldst not see, were not thine own heart dark.
Thine own keen sense of wrong that thirsts for sin,
Fear that--the spark self-kindled from within,
Which blown upon will blind thee with its glare,
Or smother'd stifle thee with noisome air.
Clap on the extinguisher, pull up the blinds,
And soon the ventilated spirit finds
Its natural daylight. If a foe have kenn'd,
Or worse than foe, an alienated friend,
A rib of dry rot in thy ship's stout side,
Think it God's message, and in humble pride
With heart of oak replace it ;--thine the gains--
Give him the rotten timber for his pains!
----------------- Samuel Taylor Coleridge
This is good news
Outraged citizens are letting the SEC know what they think of the SEC permitting the ongoing ILLEGALITY of naked short selling.
http://news.goldseek.com/...
There Is No News, Only Controlled Disclosures
Floyd comfortably numb on the Dark Side
http://norris.blogs.nytim...
LibBerte..
Floyd is indeed on the Dark Side! And you are such a clever gem!
If you will and if you remember.. please try to alert me to the latest as this unfolds! Sometimes I am on "information overload"...perhaps I need to clear my hard drive of some useless files ( I can start with the years of MSM I have stored >> delete!)
Here is an oldie for you if you like Tull!
http://www.youtube.com/wa...
So!
Come on ye childhood heroes!
Won't you rise up from the pages of your comic-books
your super crooks
and show us all the way.
Well! Make your will and testament. Won't you?
Join your local government.
We'll have Superman for president
let Robin save the day.
=
-
Skating Away On The Thin Ice Of A New Day
“Do you ever get the feeling that the story's too damned real, and in the present tense ?”
It’s good to remember our roots.
Speaking of thin ice makes me think of penguins-- Supermen and Dark Siders… I think of archetypal tales – of snickering villains, and easy to recognize goons, engaged in smear campaigns to distract for crime.
http://www.youtube.com/wa...
http://www.dailypaul.com/...
http://www.deepcapture.co...
But we have many superheroes!
http://i165.photobucket.c...
Penguins and other villains always get foiled!
Foil: The Tin Men – Unindicted Coconspirators of Virtual Reality
“I can predict the behavior of the Conspiracy almost as if I had a microphone inside their smoke filled rooms.”
http://www.dailypaul.com/...
TAGLINE: ‘ The American Dream Changes, The People Who Sell It Don’t’
http://en.wikipedia.org/w...
It is late
and your names are too close. I am addressing this to liberte. You should think seriously about being an author of a book or a screen writer, as you have an amazing way with words. You could do something with the reality that surrounds us now. As they say, truth is stranger than fiction.
.... Person Sitting In The Audience
http://www.youtube.com/wa...
Skating away,
Skating away,
Skating away on the thin ice of a new day
As you push off from the shore,
Won’t you turn your head once more
And make your peace with everyone
And for those who choose to stay
Will live just one more day
To do the things they should have done
As you cross the wilderness
Spinning in your emptiness
You feel you have to…prey ()
Looking for a sign that the
Universal Mind has written
You into the passion play
Skating away,
Skating away,
Skating away on the thin ice of a new day.
And as you cross the circle line
While the ice fault creeps behind
You’re a rabbit on the run
And as the silver splinters fly
In the corner of your eye
Shining in the setting sun
Do you ever get the feeling
That the story’s too damn real,
And in the present tense?
Or that everybody’s on the stage
And it seems like you’re
The only person sitting in the audience
Skating away,
Skating away,
Skating away on the thin ice of a new day
Skating away…………Skating away……...............Skating away.
Don't Be Bambi’s Mom In The Headlights
The Opening Of Misty Pandora’s Box
Click each Glick video……and Click the Cramer CNBC video included in the comments to get a grip.
http://glickreport.blogs....
From Bloomberg:
Short sales, particularly among retail investors, plummeted after the SEC announced the ban, according to data from S3 Matching Technologies, which processes trades for three of the top five retail brokerages. The sales fell 78 percent on average among the companies named in the order, compared with trades on July 14, the day before the SEC announced the measure, S3 data shows. The company handles about 15 billion transactions daily.
78 percent!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
SEC Extends Naked Short-Sale Order on Fannie, Freddie (Update1)
By David Scheer and Edgar Ortega
Enlarge Image/Details
July 29 (Bloomberg) -- The U.S. Securities and Exchange Commission extended an emergency limit on short sales in shares of Freddie Mac, Fannie Mae and 17 brokerages as it prepares broader rules to thwart stock manipulation.
The SEC pushed back expiration of its ban on so-called naked short sales of the firms' stocks from today through Aug. 12, the Washington-based agency said in a statement. The order aims to keep traders from driving down financial stocks to boost profits after Bear Stearns Cos. and IndyMac Bancorp Inc. collapsed amid rumors they were faltering.
The emergency order, focused on companies whose collapse might expose the U.S. government to losses, gives regulators time to weigh wider restrictions. SEC Chairman Christopher Cox last week told lawmakers the agency is examining other proposals, such applying the ban on naked short sales to the broader market.
``It definitely appears that the SEC is interested in making adjustments to short-sale regulations,'' said John Standerfer, vice president for financial services at S3 Matching Technologies, the Austin, Texas-based trade processor.
In traditional short selling, traders borrow shares and sell them. If the price drops, they profit by re-buying the stock, repaying the loan and pocketing the difference.
Naked short sellers don't borrow shares before settling sales. The SEC is concerned manipulative investors may use the sales, legal under some conditions, to drive down prices by flooding the market with orders to sell shares they don't have.
Arrange to Borrow
The temporary order, which took effect July 21, requires traders to at least arrange to borrow shares before selling short Freddie Mac and Fannie Mae, the government-sponsored mortgage buyers. The order covers brokerages with access to the Federal Reserve's discount window, which was opened to investment banks after the March collapse of Bear Stearns.
Market makers have an exception under the SEC order that permits them to sell short to maintain liquidity. Investors, such as hedge funds, previously could start trades without an agreement to acquire shares.
Short sales, particularly among retail investors, plummeted after the SEC announced the ban, according to data from S3 Matching Technologies, which processes trades for three of the top five retail brokerages. The sales fell 78 percent on average among the companies named in the order, compared with trades on July 14, the day before the SEC announced the measure, S3 data shows. The company handles about 15 billion transactions daily.
`Pretty Restrictive'
``I see no reason that will turn around,'' said Standerfer in an interview yesterday. ``It seems like a pretty restrictive rule to put in place for the entire market.''
Cox last week told Congress the agency may also force investors to disclose ``substantial'' bets on falling stocks and or reinstate a version of the so-called uptick rule, which barred short sales of stocks when prices are falling.
The uptick rule, implemented after the Great Depression and scrapped last year, allowed short sales only if a preceding trade boosted the stock price. The SEC is studying whether increasing the uptick increment, such as to a nickel or dime, might be more effective, he said.
To contact the reporters on this story: David Scheer in New York at dscheer@bloomberg.net; Edgar Ortega in New York at ebarrales@bloomberg.net.
http://www.bloomberg.com/...
SWEET
RICO in spanish may be tranlated as-- rich, fine, sumptuous... let's hope some of the hedge fund tigueres and banditos will soon be learning the meaning of this term in the American criminal justice system. Let's not hold our breath. But I'll exhale that word to sum up my sentiments and announce this development:
Illegal Short Sellers May Face RICO Indictments
by: R.J. Chopin posted on: July 29, 2008
RICO, Racketeering Influenced Corruption Organizations Act, the law Rudy Guiliani used to bring down Michael Milken, and other Wall Street crooks, could be revisited in the SEC's struggle to clean up Wall Street's growing threat to the financial markets.
The SEC's crackdown against illegal naked short selling and rumor-mongering resulted in more than 50 hedge funds being slapped with subpoenas last week, according to the Wall Street Journal. Conspiracy theorist and CEO of Overstock.com (OSTK), Patrick Byrne, has embarked on a crusade to expose the nefarious hedge funds that practice illegal short selling. Byrne's web site, Deep Capture.com, has compiled a plethora of facts documenting, names, dates, times and videos of the players and their schemes.
Mark Mitchell, of DeepCapture.com, believes there exist a "hedge fund-orchestrated campaign to cover-up the crime of naked short selling." Depending on how deep the SEC probes, and what insidious facts they discover, we could see hedge fund managers, traders, and other employees facing scandalous, unprecedented charges under the infamous racketeering law, RICO. There is growing pressure for whistle-blowers to sound off or risk becoming the next scapegoat.
Clusterstock.com, reported, "the SEC is demanding both trading records and email correspondences" from subpoenaed firms. The inclusion of cell phone and text messaging records will undoubtedly be scrutinized. Concurrently, the NYSE Regulation Inc. is also investigating how some of its largest firms comply with false and misleading rumors that could undermine a stock's price. This is going to intensify.
Motley Fool, published an article on March 24, 2008, titled "The Naked Truth on Illegal Shorting," in which 100% of a company's shares were purchased by one individual, and were not available for shorting. Nevertheless, 60 million phantom shares were traded, according to owner. Subsequently, he filed a SEC 13-D compliant form.
Dick Fuld, CEO of Lehman Brothers (LEH), told market regulators that he has information that short-selling hedge funds colluded to bring down Bear Sterns (BSC). If Fulds's "information" is of evidentiary value, these hedge fund managers, and their cast of cohorts, could find themselves behind bars.
If the SEC diligently investigates the facts, we could see RICO indictments against illegal short sellers as early as Labor Day. Anyone charged under the RICO statue, even if they are found "not guilty," will become permanently damaged.
After observing the demise of Fannie Mae (FNM), and Freddie Mac (FRE) last week, it is expedient that the SEC move quickly to abolish the practice of naked short selling for all stocks. Short selling should only be allowed after the short seller has successfully borrowed the shares. The practice of selling shares that cannot be borrowed is a crime!
http://seekingalpha.com/a...
Short Course
Here's the SEC Testimony presented by Bud Burrell, one of the key people working to draw attention to this huge theft occurring through corruption of our markets:
Subject: File No. S7-19-07
From: Bud Burrell
Affiliation: 40 year veteran
July 13, 2008
File No. S7-19-07
Amendment to Regulation SHO
August 1973 I started on Wall Street in Block Trading for Bache. Worked in all Major firms through the years.Traveled all over the world.
From $6 Billion per day Fails to deliver is now Over $13 1/2 billion per day.
There is More Naked Short shares in the market than there is Outstanding Shares.
We have allowed our Clearing systems to be Gamed, to the point where they are able to manipulate markets.
Senator Bennett told the US Senate Banking committee about Global Links shareholders. The founder bought all the legal outstanding shares which was 1.2 million shares subsequently in the next 10 days 32 million shares traded.All Naked or Counterfeit shares. Companies that experience a Naked Short selling attack are unable to survive.
Regulation SHO is a Fraud. They Grandfathered failures to deliver after they looked at the failures at the systemic level they realized they could not force all the failures to settle in the market place without essentially wiping out the Brokerage industry and the Hedge Funds. The List was fraudulent did not list all the stocks that had these persistant FTD's.
The Brokers realized the way to hide their Fails or to create Naked Shorts so that they couldnt be seen was to do them outside of the system of the Depository Trust custody and clearing system which is a Monopoly in this country in a thing called Ex-Clearing.
Effectively the level of Counterfeiting today, I recently saw the estimate as a real open Fails in stocks to be roughly $192 Billion That is a mark to the market at what those stocks are priced today at these depressed levels today.God knows what the # would be to buy those fails in if the FTD's were capital charges to the people responsible for the Naked short Selling. There capital would be wiped out and they could never buy in the existing fails because the people had been raped would charge them extortionate prices for the stocks that they had destroyed.
Fed Reserve Bank just reported recently in there was 1.98 trillion in bonds that were Failures to deliver.That is just what they are reporting and that # is probably higher.
The Misdirection is the attention of investors is being directed towards Naked Short selling when the real problem is "Settlement Failures" which are intended to Launder money criminally and to evade taxes offshore By moving the trades Offshore A systemic attack on all wealth in this country going on for over 35 years. Mar Rich, Boesky
Gary Aguirre in the process of negotiating settlements with the government.
Europe went from 13 days to 3 days to settle Fails to deliver. That has not happened in the US
A Major case with O'Quinn and Christian in April of 09 will win.
American people are asleep at the wheel in this crisis.
SUN Micro and Oracle were Naked Shorted offshore destroying there market share.
Electronic settlement process enabled the counterfeiting of shares called Dematerialization.
Markets in the USA are corrupt top to bottom, front to back.
Jim Cramer described manipulative techniques he used to paint the tape, then he would tell journalists about it and later was subpoenad for it.
Encourages everyone to read the decapture website. It names names of journalists that helped hedge fund shorts to profit.
Paid Bashers paid for the # of posts they would post. The bashers are still in operation while Elgindy is in prison.
Senator Bennet gave a speech about Naked Shorts being understated. Ex-Clearing not being stated.
Mortgage CDO scandel dwarfs the bond scandals. Systemic risk has caused this.
Global Economic meltdown because of the current Real Estate market.
The Bailout of Billions for JP Morgan to buy Bear Stearns is coming out of the pockets of the American people.
We are currently seeing the Fatal flaw of democracy Right Now.
Deepcapture.com and thesanitycheck.com must be read by people.
I encouraged a 72,000 shareholder group to speak out against it.
Phantom Shares on Bloomberg was supposed to be 2 hours instead of 30 minutes and won an Emmy award. A brilliant piece.
Listen to my interview
http://www.financialsense...
I did 9 interviews with the Christian traders radio station and with Mark Faulk. Faulks book describes the story of a Las vegas company CMKX.
In CMKX $250 million was vaporized in a Las vegas pump and Dump. "No fewer than three federal criminal confidential informants involved in the deal before before the Stock even started trading"
http://www.sec.gov/commen...
Options – Game Board
http://www.dailypaul.com/...
Grin And Bear It-- CIA Connections
Can You Handle The Truth ?
http://www.whatreallyhapp...
http://www.youtube.com/wa...
The Short List
http://www.dailypaul.com/...
First time i clicked this post...
You've been keeping busy.
CommissiononPresidentialDebates
NationalBallotAccess
NOTA
BlackBoxVoting
Better Busy-ness Bureau
Limelight Set Up
Ending Stock Market Manipulation
By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce
July 29, 2008
"Naked short selling" and the impact of manipulative behavior on investors and markets has been big news recently. Unfortunately, there's also been a lot of misinformation about what it really means for investors.
First, remember that legitimate short selling is a good thing. It is simply a bet against the future value of a stock, and it helps markets deflate "irrational exuberance."
But people who make bets sometimes try to cheat. "Pump and dump" is a well known way for criminals to use rumors to illegally increase stock values. (It was even featured on the Sopranos.) The same thing in reverse is called "short and distort," where people spread false bad news about a company in order to make short positions pay-off. This can have a terrible impact on good companies and their investors for long periods of time. Some bad guys even send false information to the SEC in an attempt to spawn investigations that will drive down a stock's price for years.
The U.S. Chamber has long complained that the SEC has not done enough to stamp-out short and distort schemes. Chairman Cox took a few small steps last week. He called for more investigations into rumor mongering on Wall Street. He also implemented temporary process limits that should reduce "naked short selling" in 19 high profile financial stocks. "Naked short selling" is a technique used by short and distort manipulators that involves selling stock that may not even exist.
Neither of these actions was earth shattering, but at least the SEC acknowledged some problems. There have been companies parked for years on the "Threshold List" of those victimized by naked short selling. But much tougher and more extensive enforcement actions are needed. Enforcement officials need incentives to pursue these tough cases--as it's often more tempting to focus on catching companies with meaningless accounting errors who are willing to pay big fines. Additional procedural safeguards must also be put in place to make fraudulent naked short selling and other manipulative techniques harder, while preserving legitimate investors ability to easily short stocks.
We applauded the SEC's recent actions. However, crime doesn't sleep and many companies and investors remain vulnerable to short and distort frauds. The SEC should extend and expand its new measures to protect additional companies. Then, it should work quickly to find permanent solutions to rid our markets of the scourge of short and distort.
For more information, visit the Chamber's Center for Capital Markets Competitiveness.
http://www.uschambermagaz...
Sex, Lies & Videotape
There is a lot here: --- What's been happening; who; why; what's coming...
The only consolation is it's quite a story....pull up a chair.
Bear Trap
http://www.foxbusiness.co...
Scroll down to Bear Stearns Book!! "Bear Trap"
Paulson is named in it!..And not in a good way
http://www.beartrapbook.c...
The Authors
Anonymous was a senior executive with responsibility for one of Bear Stearns & Co.’s major derivatives groups in New York. He has been a derivatives practitioner for nearly two decades, leading the development of new financial products on two continents and in both developed and emerging markets. He helped create some of the world’s most innovative structured financial products and is a chartered financial analyst.
A Wall Street Legend, Bear Stearns had not had an unprofitable quarter since the crash of 1929 until the credit crisis of 2007-2008 when in a matter of days it was gone.
http://biz.yahoo.com/bw/0...
The book project is just the beginning, though, as Alan Morell, CEO of Creative Management Group Agency, is planning to launch a network bidding process for the electronic rights to Bear Trap in mid-August of this year. Said Mr. Morell, “Bear Trap is the most powerful Wall Street story since the collapse of Drexel, and it has the added drama of the complexities and politics of the Federal Reserve Bank’s involvement. This is tailor-made for a television true-drama story.”
SHAKE UP TO SHAKEDOWN
It’s here folks.
About 10 days ago I started this post, though I had not completed my research, because I felt the urgency required I do my part to throw this out there so many of you unacquainted with this issue begin the process of getting up to speed. This is chronic, but quickly becoming acute.
If you don’t get your poise, you may be confused by the head fakes.
I was challenged first by trying to discern who’s information was reliable. That was much easier for a Ron Paul fan than it will be for the uninitiated public. For example: ‘If this is real, why doesn’t the mainstream media get it ?’ … Well, yeah.
What about the whistleblowers, where are they coming from? No self-serving profit motive I could see to justify a manipulative crusade in the face of near universal cold shoulders. But what caught my attention most was the style of calumny which characterized their detractors who seemed frantic to marginalize them with classic psy op techniques very recognizable to Ron Paul partisans… and for the same reasons: Unsubstantiated projection, thinly veiled disinformation and fox news style name calling like -- “crackpot, loonies, deranged, lowlifes, baloney brigade, cultists, conspiracy theorists railing against a nonexistent crisis.”
If you devote a little time, you will not likely have any more trouble than I did in satisfying yourself where the integrity lies and who are the charlatans. But this conclusion carries its corollary : IT IS BIGGER AND DEEPER THAN WE THOUGHT
Once you’ve done some background work, start here to dig deep:
http://www.dailypaul.com/...
Here's a post I lifted from Burrell's website:
QUOTE:
SEC Discovers That Unbridled Naked Short Selling Might Actually Be, Er, Not So Good....
Location: Blogs Bob O'Brien's Sanity Check Blog
Posted by: bobo 7/15/2008 3:59 AM
Here's what you won't be hearing any time soon, or reading about in the NY Financial press: "Easter Bunny's prediction of massive, pervasive naked shorting crisis comes to fruition, destroys US market." "Patrick Byrne's call that system is in danger of vapor locking due to illegal market manipulation cause by NSS now 100% dead on." "Bob O'Brien spelled out exactly how NSS will cause systemic meltdown and erosion of public confidence in US markets, and is completely correct on all counts."
Nope.
What we are seeing is the US markets relentlessly melting down, as even the bulge bracket firms, and the "too big to fail" entities, are victimized by unbridled, unconstrained naked short selling. Exactly as used to be the case in the 1920's. Exactly in the manner that resulted in the SEC being formed, and the uptick rule (discarded just a few short months back as an anachronism), and requirements for timely clearing and delivery. All of which the SEC has basically ignored, very deliberately.
While the national net worth is stolen, and the markets are rendered a cesspool of crookery that makes an Afghan flea market seem rigidly honest.
Cox is going to introduce an emergency rule requiring that short sellers actually borrow the stock they then sell - in the two largest holders of mortgages in the nation. Why? Because apparently it is OK to put thousands of companies out of business using the same technique, but when it becomes so obvious that the taxpayers are going to get stuck with a massive obligation due to the bear raid and resulting crisis of confidence that nobody can pretend it isn't happening anymore, the SEC has to act. Sort of is forced to.
Pure tripe. Ass covering. And it won't work. Because it will likely lack adequate penalties, and be so deliberately poorly written and structured that any serious legal challenge will overturn it.
This is how the SEC intends to pretend it is doing something, when for the last decade it has deliberately and studiously done nothing but aid and abet the predators. And even as it does something, mark my words, in the end, it will be shown clearly that it did nothing but help the crooks. This is a grandstanding sham, wherein the SEC does something in this "emergency" to appear active and on the ball.
I predicted that we would see a financial calamity, which would put the entire burden of years of unbridled crookery by wall street, squarely on the backs of the taxpayers. And here we are. I also predicted that the SEC would use this entire contrived disaster to let the criminals off the hook for robbing the nation of its retirement savings. That is still to come, but mark my words, it's a coming. I expect what I described two years ago, where the government basically allows all the naked shorts to close out at current mark to market, essentially rewarding the largest financial theft in history, and rendering the constitutional protection of property rights a farce. That's the only way this can be cleaned up - we, the investors lose everything, and the guys who drove all our companies into the toilet get to keep 100% of the money they generated doing so.
Patrick just issued a statement on this that sort of says it all, albeit much more politely than I do. So much for equality under the law. Depends upon how much juice one has, I suppose. And the ugliest part about all of this is that the Wall Street firms also singled out for special protection by Cox, are the very same firms that largely made this illegal and predatory scam possible, and which benefited hugely from the practice.
Billions and billions and billions made, raping the future of America via its public companies and their capitalizations. The destruction of GDP for profit, unchecked by any of the entities chartered with ensuring it would never happen.
As to who is sucking out all the money being gained by gaming the system, how do you think so many hedge fund managers are making close to a billion a year, or more, without generating anything? No new drugs, no shoelaces, no intellectual property....nothing. Just pulling the money out of the market. They win. You lose. You pay, they collect. And the fact that so many have done so many illegal things for so long ensures that it is not only pervasive, but that they are "too big to fail, or have too much juice to stop or prosecute." For example, you have the secretary of the treasury being the guy who ran Goldman when the most massive crookery in history was going on, and they created every variety of toxic derivative and bogus NSS scam I can think of (my opinion). This is the kind of guy I am describing. Someone running the country, who ran one of the big wall street firms that brought us to this point. Anyone seeing the irony here? Can anyone legitimately hope for any justice when crookery of this magnitude is rewarded thus?
We are in this situation precisely because the SEC decided to use the 1934 Act as asswipe, and behave as though the laws and rules requiring prompt settlement and delivery didn't apply to the brokerage community. The sleight of hand is well documented in the NIPC petition, which explains how there is no rule that allows the SEC to substitute flawed UCC state law for the federal securities laws, and yet they just go ahead and do it anyway, acting as though there is. That is the single most damaging thing the SEC has done, and it has created this entire nightmare.
If federal securities law was actually enforced by the SEC, then trades would be broken at T+3 when the share didn't arrive to make the securities entitlement shown in the customer account good. Instead, the SEC allows that securities entitlement to function like a share, but absent the actual share.
It's called counterfeiting, or rather, trading in unregistered securities. The 33 and 34 Acts outlaw it. But the SEC allows it, which allows brokers to not break trades once no share shows up, but instead to represent ever greater numbers of securities entitlements in the system, absent shares to support them, and trading exactly like genuine securities. Those securities entitlements that aren't allowed to exist per federal securities law once the share doesn't show up, instead trade like stock, are bought and sold, and have contaminated the entire system with a rot so pervasive as to be unfixable. The SEC deliberately did this. It wasn't accidental. It knows it's position and behavior violates federal law. But it doesn't care, because it figures you are all too stupid to get it, or to stop them.
It's a con game. They know it. They understand it. It is spelled out clearly in the NIPC petition. They have no answer, or counter to the charge. They simply ignore it, hoping that the bleating flock doesn't get it. Good bet.
And now, their refusal to rein in predatory, rampant naked short selling, in spite of a massive campaign by Patrick, and 4 years of alarm bell sounding on this blog, and even more and longer alarms by Dave Patch and Bud Burrell, has resulted in a complete breakdown in the functioning of the American market system.
The most disturbing part about this, aside from the obvious, is that, as Patrick points out, we are now officially a double standard financial market. If you are important to the nation's staying solvent, you have one set of rules and are protected, albeit in a sham manner. If you are "just" a normal company, you have another set of rules. You are the girl in the bar it is OK to rape. Paris Hilton? Tut tut, bodyguards everywhere to protect her. You?
A hussy who was asking for it. This astounding de facto admission from the SEC underscores that the whole conceit of a fair and balanced system is a lie and a sham.
What is insulting is not just that nobody is going to actually acknowledge that this was all preventable, and called well in advance by guys like me. No, it is that the SEC and elected officials obviously feel it is absolutely OK to allow unbridled criminal manipulation in small companies, and then later in medium sized companies, and now, in the largest entities on the planet. It's only when the biggest banks and financial institutions in the country are being put out of business that they suddenly pretend that they just discovered that selling stock that doesn't exist could be, well, er, negative for capital formation, investor protection, and the integrity of the markets.
No kidding.
Huh.
I mean, that is so unexpected. Imagine. Selling possibly trillions of dollars of non-existent stock, with the nudge nudge wink wink approval of the SEC, could eventually damage the whole system irreparably. That is so hard to grasp. Really.
What sickens me is that the structural deficiency could be largely solved by eliminating the market maker exemption, requiring the SEC to uphold federal securities law on security entitlements (and not pretend UCC preempts federal law), and requiring a pre-borrow on all short sales. But it won't be. They won't do it. They will instead engage in a series of half measures that won't actually do any good, and will result in the bankruptcy of the country in short order.
And you can go back over the years of blogs here, and read exactly how it was trumpeted to everyone that would listen, that this would destroy the US market system so 500 obscenely rich white guys could steal the national net worth. Just as a much smaller number did in the S&L crisis, at a much smaller level.
And you will never hear that it was all foretold, well in advance, by an extremely vocal minority that tried everything and anything to avert the disaster. Nope. I won't be mentioned, Patrick is invisible to the press, and everyone pretends that there was never any canary in the mine shaft. And even now, the captive NY press continues to advance the transparent lie that obvious and massive market manipulation didn´t cause the destruction of share prices in these huge companies, but rather, a sudden, spontaneous recognition that they were bad companies did. Sort of like the dot com implosion stole TRILLIONS of market cap, when one day the entire market realized that it was all hogwash and decided to sell in unison. I guess when you own the printing presses, you can argue whatever hogwash you like. It is NEVER the bad guys doing it, ALWAYS the company´s fault. Repeat until no more market is left to discuss.
This sort of a civilization is doomed, I'm afraid. That's the only conclusion I can arrive at. And when the population finds itself share croppers on land their fathers fought and died to protect, essentially serfs to the new owner/master structure that they owe everything they will ever make to, the only positive is that a few can honestly say, I told you so.
Small consolation.
THIS IS THE KEY LINK --- Read THE STORY:
http://www.deepcapture.co...
http://www.sec.gov/commen...
http://seekingalpha.com/a...
http://www.businessjive.c...
http://www.dailypaul.com/...
Thank you...
...for going down the rabbit hole!
This is simply mindboggling. It is even harder to believe than the possibility of 911 being an inside job. What more don`t we know yet? How far will they take it? Who are "they"?
Well. The good thing is, thanks to the RPR I can meet people from the USA who really care and they can meet foreigners who really care as well. THIS is the New World SPONTANEOUS Order. The NWSO, if you want. As long as people can communicate, freedom will be a plant of rapid growth because it nurishes itself from within, when it is unleashed in common perception. Ron Paul knows that, he has read Hayek. That`s the reason why he is so confident.
Folks, I`m really sorry for your country. I`m really sorry for all of us. Future generations will look back and consider "them the people of 2008" as ignorant sheeps, taken as hostages by a gang of wolves. The did not even have to use that much brute force. They simply dumbed us down.
But let it not be said, that no one objected.
We will prevail, the only questions are: when? and: how hard will it be?
--------------------------------------
europe4ronpaul.blogspot.com
Hasta la libertad, siempre ;-)
I Like Your Attitude
This is the way the world ends
Not with a bang but a whimper.
"This last line [of Eliot's poem The Hollow Men] alludes to, amongst some talk of war, the actual end of the Gunpowder Plot mentioned at the beginning: not with its planned bang, but with Guy Fawkes's whimper, as he was caught, tortured and executed on the gallows. Some critics, particularly Helen Gardner, have also pointed out a (perhaps un-Eliotic) note of hope insofar as that 'whimper' could be interpreted as the sound of a new-born."
http://en.wikipedia.org/w...
Who better than our obstetrician, the good Dr. Paul, who first called us to notice the quickening, to help deliver this new birth.
I`m really...
...looking forward to the day when all this has ended and I will come to the US and meet some of you guys.
In this future, we will be free men, gold will still shine and we will look back at a socioeconomic gigantic struggle.
I`m an atheist, but God bless you. After all, we never know...
--------------------------------------
europe4ronpaul.blogspot.com
Hasta la libertad, siempre ;-)
Fabio: Have You Joined Yet...
... The International Fellowship Of The White Rose ?
May we hope when that day comes one of us has enough shiny coins in his pocket to buy us both a drink.
http://www.dailypaul.com/...
For your convenience - this is good
also from Jim Sinclair. He has a lot of good info today
Print at least two copies of the following points in at least 32pt font. Post one copy above your computer monitor and the other by your phone:
Gold is going to $1200 in 2008.
Gold is going to $1650 on or before January 14th, 2011.
The US dollar is going to USDX .5200
Gold is getting ready for its third attempt at $1000.
The so called dollar rally is a total joke.
The junior gold shares sector are where the shorts are the greatest and the bargains the best with good companies looking at 1000% gains from today's lows.
From Jim Sinclair - shorts on the gold juniors
Posted On: Friday, July 25, 2008, 12:34:00 AM EST
The Premature Pushing Of The Panic Button
Author: Jim Sinclair
Dear CIGAs,
“US CFTC CHARGES DEFENDANTS WITH 'BANGING THE CLOSING PERIOD' OF OIL MARKET TRADE”
Are you totally blind?
Today you read a post from Trader Dan concerning chart painting, but you still continue to push the panic button, letting yourself be bamboozled by those short the junior gold shares.
This day’s action has all the markings of the MANIPULATION resident in the commodity markets.
This gold reaction has no legs. The third try at $1000 stands right in front of us.
Even the most gullible market on earth, the US equity market, has barfed out the spin on Fannie and Freddie costing only $25 billion. The suggestion that it may cost nothing at all is laughable.
Even the Spinmeisters are running out of gas.
The housing market seems as if foreclosures will only end when every house sold in the past three years is foreclosed on.
The job market is unwinding.
Every pro knows the recent bank earnings are accounting legerdemain. All reports on bank earnings are far worse than the figures show.
The greatest test of the credit default market will be the bonds of GM, GMAC, Ford and Ford Credit.
The bottom is starting to fall out of credit card payments.
Today has all the earmarks of a Hail Mary play in the juniors hoping to break the back of investors.
Look at the HUI which shows you the “BANGING THE CLOSING PERIOD” of the junior golds. The cheapest gold entities are the bombed out juniors that are real companies not starved of operating finances with viable properties. They will appreciate 1000%.
Before you break out your razorblade kit and head for the bath look at the HUI and know gold is going above $1000 very soon.
If you do not see what is happening then you are totally BLIND to how you are being bamboozled!
Read Jim Sinclair - two or three x a day (or more)
www.jsmineset.com
Also from jsmineset
this from Trader Dan Norcini yesterday:
Dear Friends;
The following is a series of headline alerts and a stories that came down my wire this AM. The reason I have included them is to reinforce what we have been saying about “CHART PAINTING”. You would be a bit surprised to learn that I receive emails from people out there who categorically deny such a thing is possible or that it even occurs in the US markets. They condescendingly assert that our claims about the tactics of the short sellers, both in the Comex gold arena and in the stocks, is merely a case of sour grapes from a frustrated bull. That is naïve at best and just plain ignorant at worst.
While this story deals with the oil market, the tactics employed are identical and reasons behind them are the same in all cases. Why is that? Because today’s markets are dominated by technicians who pride themselves on having no fundamental view whenever they approach a market but claim that all that is necessary to make money is a knowledge of technical analysis. Some of them actually go so far as to boast about their ignorance of the markets that they trade and revel in the fact that they could care less!
We have maintained that those who have no fundamental view are rudderless ships on the ocean of the trading floors. They can be easily blown about by every wind of price behavior. When prices move lower during a price retracement in a bull market, they become morosely bearish. When prices move higher, they are wildly bullish buying blindly into upside strength. Price action alone dictates what they believe! Since this is now the vast majority of traders/investors, it takes little imagination to understand why chart painting on the close is so important to market manipulation schemes.
It is a fact that the closing price is the most important price in any commodity or stock for that day’ session as nearly every single technical price indicator or oscillator uses the closing price in its calculations. Move that strongly in one direction or another, push it as far as possible off the session highs if you are attempting to force price downwards, and all of the technical analysis programs that millions of investors are using will register your efforts. The result is that those software programs then do your work for you as they HERD the INVESTING PUBLIC in the direction you wish them to go.
Manipulation such as is charged above, “banging the closing period”, has ONE PURPOSE in mind – to move the closing price in the direction that the perpetrators desire so as to AFFECT THE MAXIMUM technical damage or effect to a market and to psychologically devastate those on the other sides of the trade.
Now do you see why it is necessary when trading gold to understand the tactics of our trading enemies and to also get a grip on your emotions when trading as well as having a firm fundamental view? Once you understand how the game is played you can also spot the tipoffs that alert you to their activities and protect yourselves accordingly. You can also profit accordingly by using the inevitable lemming like response to your advantage.
Dan
Go to http://www.jsmineset.com/ for links to the aforementioned articles. Something's gonna give pretty soon. Is this some of the big event action that Dr. Paul was talking about a couple of weeks ago?
the only negative thing
the only negative thing about the recent standing by the fec is that it is caring firms from shorting those stocks at all. That can lead to a slippery situation, as seen in the chinese markets where shorts are not allowed.
The Short Circuit
This article from April has not lost any of its edge. The short game is not what it use to be.
Read particularly the last comment from the former Chicago market maker:
http://seekingalpha.com/a...
Short Shrift
This guy, David Patch, has been doing yeoman work trying to get the SEC to pay attention to the need for enforcement of the rules. He, and a small group of stand up guys like Patrick Byrne CEO of Overstock.com ( victim of naked stock bear raids), have been up against captive regulators and industry toadies who bow to the obfuscating Hedge Hogs all pretending ' there's nothing here to see folks...move along.'
QUOTE FROM PATCH'S SUBMISSION TO THE SEC:
July 22, 2008
Securities and Exchange Commission
100F Street NE
Washington, DC
Mr. Chairman & Commission Staff,
It has been a long 8+ years of my life spent trying to educate you on the destruction of our capital markets by short sale abuses. In this near decade of time spent in the education process I have
witnessed the SEC migrate from a position where naked short selling does not exist, to it exists at a very finite level, to naked shorting being a serious and abusive process, and finally to where we are today, and emergency order to protect the most liquid financial institutions from the abuses. Congratulations on having somebody at the SEC have the light go on upstairs.
Unfortunately that lit is not well lit as many within the agency remained entrenched in the position that short selling is good for the markets at any cost. Short selling provides liquidity and price
discovery and thus should not be constrained in any manner.
Those within the agency who continue to believe that short selling should remain unconstrained need to have their employment status re-evaluated. Bear Raids, market manipulation, and the ultimate destruction of technology, jobs, and community stability have all been the negative impacts
of an unconstrained investing process.
This reform up for re-submission for public comment has received better than 640 new comments in the past 2 weeks alone. Not one supports any alternative but the complete abolishment of the
Options Market making exemption. If history repeats itself, industry members will submit a few comments on the last days asking that the Commission forgive the rights and opinions of the general investing public and that these exemptions remain intact in order to provide liquidity for the options markets.
Options Market Makers will threaten the Commission with rhetoric about how they can not support their business model without the exemptions. Not one of the memos will contain any evidence or
analysis to support such claims. Not one memo will provide evidence that alternative approaches were investigated and found insufficient. Not one will provide the very empirical data that was requested of the SEC and is presently responsible for this delay once again. Instead the industry will demand the Commission to support their rights to unrestricted revenues at the expense of the investing public, the public companies, and our local communities that house those employed by these companies.
Despite the public comment, private communications continue to exist between the commission and industry lobbyists. The Securities Industry and Financial Markets Association (SIFMA) lobbying on behalf of Wall Street and the Managed Fund Association (MFA) lobbying on behalf of short selling
hedge funds used their political connections to address the Commission in private.
Fortunately not all stays private and the public is exposed to a glimpse of how conflicted such meetings and communications can become. Former Congressman Richard Baker, now CEO of the MFA along with short seller James Chanos drafted a memo to Chairman Cox, likewise a former Congressman hoping that the political connections of Congress can persuade an outcome beneficial to his clients – Wealthy Hedge Fund Managers.
It is the “political juice” connection all over again.
The memo however portrays appearances that go well beyond that of conflict of interest, this memo actually illustrates the expectation of separate rule making for hedge fund investors and illustrates the very fraud I have lobbied against these past 8+ years. I will highlight some of the admissions herein:
--------------------------
I cant seem to copy and paste the text of the Congressman and Industry rep. To read the outlandish excerpts and Dave Patch's illuminating responses please go to Dave's comment letter , here:
http://sec.gov/comments/s...
S&L Crisis and Enron as Prologue
http://www.dailypaul.com/...
This is a huge crime
but I think patenting aids and spreading it in the world and withholding the cure, which is also patented is the greatest crime.
Can you back up this
Can you back up this fact?
Let's keep the freedom train rolling.
Here ya go
http://video.google.com/v...
This long MP3
Is amazing
BEFORE LISTENING TO THIS LONG MP3 that is well worth your time...you must read this WIKI and understand Short selling for all of this to become clear. And after you understand Short Selling, then continue to read "Naked Short Selling". This is illegal if not covered in 3 days. It is going on...and the SEC is turning a blind eye..
http://en.wikipedia.org/w...
The Mp3 describes how "Naked Short" Selling is destroying the economy. These big hedge funds are manipulating the markets...and IT IS TRUE. Hedge fund managers are earning on average $876,000,000 a year in bonus's by doing this. This is your money folks. They are eroding your homes value, taking 1/2 of your retirement by doing this. And the entire gov't is involved in turning a blind eye.
IF YOU TAKE THE TIME to learn everything this guy has to say....you will understand exactly why we are doomed. The average "Joe" would never understand this. It would go way over his head...but people here at DP are a little wiser.
After you learn about Naked Shorts, and then listen to the MP3, the entire picture will become clear that the economy has no hope of recovering!!
Hope you will do the research!
Explaining Illegal Naked Shorting And Stock Manipulation
Background Reference. Terms and Process Described:
http://counterfeitingstoc...
I don't understand all this mumbo-jumbo. Can someone or two try
to make it more comprehendible for those of us drinking too much fluoride?
The battle today is not between conservatives and liberals or Republicans and Democrats. It is a battle between Americans and globalists. ~ Chuck Baldwin
Phantom Shares
This video helps make the context understandable:
http://video.google.de/vi...
Now, as of lately
Didn't the SEC pass a law against short selling 19 financial institutions. Seems rather selective to me, while all the smaller business go under because of naked short selling has been allowed to take place. Very informative video. The stock market sounds like a good avenue to rackateer legally to me.
Mumbo Jumbo --- The Nigerian Translation
I lifted this from the Deep Capture Blog.
http://www.deepcapture.co...
Mugabe here seems to get the gist:
QUOTE:
BooYakashaaa!
Says:
July 25th, 2008 at 9:53 pm
Dear SEC authority,
My Name is Mugabe Abu. I am Nigerian investor and I am very interested for getting the permit for selling self printed shares of different, on the Wall Street noticed, companies.
Since this practice to sell something what you do not have is legal in US I would like also to participate in this program.
We Nigerians know very well this practice of selling something what we do not have, but we did not make it with the securities, so far.
Since printing of US dollars is illegal, I will be really interested for printing and selling fake securities as many make it in US. You call it very nice “naked (fake) shorts”. Your explanation of this procedure is very nice and I appreciate it very much and I am your admirer and ardent student.
I see that some people who get permit from you have printed so many fake securities that such company like CALM has even over 100% shorts. Others like DNDN, CORS, CCRT (only few samples) are also extremely diluted. I would like to help you to make it even more. I see still big opportunity to print more fake shares of big companies.
It is almost so easy business like printing fake US dollars but I see, in opposite to printing fake dollar, this business is full legal and you can sell these fake securities for anybody in the world; and you do not need to ask the applicable company, to print their shares!
It is an excellent business!
I always believed on your ideas of collecting money from all the world and I would be happy to participate in this huge idea of printing fake shares.
Therefore, please send me the application form for this permit and also needed information how I can start this easy business.
Please inform me if I will need to contribute any amount to get this permit and whom shall I forward this money.
I can also promise you that I will donate some earned money for your agency.
Yours truly,
Mugabe Abu
—————————————————————– RESPONSE FROM SEC
Dear Mr. Abu,
Thank you for contacting the SEC.
To improve the regulatory effectiveness of its short-sale rules, the Commission’s has, and will continue to actively regulate short selling.
In 2006, the Commission approved exchange rules expanding the reporting of short interest and began disclosing fails to deliver data on the Commission’s website.
In an effort to further reduce fails to deliver, the Commission eliminated the grandfather exception under Regulation SHO for fails to deliver occurring prior to a security becoming a threshold security (August 2007.)
In August 2007, the Commission re-proposed amendments that would eliminate Regulation SHO’s options market maker exception.
In March 2008, the Commission proposed a naked short selling anti-fraud rule. More information is available at http://www.sec.gov/spotlight/shortsales….
The Commission and its staff believe that bear raids and other manipulative conduct in our markets must be addressed with the full force of the law. We continue to investigate cases of manipulation in which short selling may play a role, and ask that you alert us to any evidence of manipulative conduct as soon as you become aware of it.
Sincerely,
RINELL RANDOLPH JR
Office of Investor Education and Advocacy
U.S. Securities and Exchange Commission
))))))))))))))))))))))))))))))))))))))))))
Sir,
Thank you for response, but I will insist on my request to get the permit, since this business is still legal. As I good understood the commission PROPOSED only.
I have already huge plans and want to sell self-printing (fake) shares on more discount prices then these fake shares, which are manufactured by others, who got such permit.
I want that everybody on the world will be able to purchase shares of big & small companies. I will go with my discount higher and higher.
I already sent a letter to GAO asking for support in my plans.
Yours truly,
Mugabe Abu
From: SEC Help
To: “Abu, Mugabe” Wednesday, May 21, 2008 6:38:28 PM Subject: SEC Response - File HO1276926
Dear Mr. Abu,
PLEASE NOTE, THE CREATION OF COUNTERFEIT STOCK CERTIFICATES IS A VIOLATION OF FEDERAL SECURITIES LAW. AGAIN, I REFER YOU TO THE LINKS PREVIOUSLY PROVIDED. You may wish to consult an attorney regarding this matter.
Sincerely,
RINELL RANDOLPH JR
Office of Investor Education and Advocacy
U.S. Securities and Exchange Commission
100 F St, NE
Washington, DC 20549-0213
—————————————————————-
SEC authority
Dear Mr. Randolph,
Thank you for the replay and advice but I see that despite you are working in SEC, you do not know what is going on around and inside SEC and on the Market. How it is possible that one stock (CALM) has 109% shorts (NASDAQ data from last month); how was it possible and who “printed” millions of the fake shares of DNDN in April 2007?- the company itself? or these counterfeiter which got permission for doing it. What about current situation – see other shorted companies. Shall I give you more samples?
Would you like to say to me that you can not see fake naked shares?? What about “borrowed”? Would you like to say to me also that borrowed is really “borrowed”, or you admit that it is next tool to make a nice business for some counterfeiter and manipulators, supported by SEC?
Mr. Randolph, I have not heard that anybody was jailed for counterfeiting stock certificates but many in Wall Street did and do it. I assume that this is still legal business and if SEC with Mr. Cox will not give me the same chance of “printing” false shares I will again and further seek the help of GAO, congress and US President.
I hope you understand me well, now.
I WANT TO MAKE THIS BUSINESS WHICH IS AVAILABLE IN US ONLY. I want to do this business like others who got the permit for “manufacturing” fake stock certificates and selling these for national and international investors.
Mr. Randolph, please provide my request directly to Mr. Cox.
Yours truly,
Mugabe Abu
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Download the Mp3 on this site
Now, to make a long story.... short:
http://www.financialsense...
I just listened to this and WOW, this is big. I downloaded the Mp3 so I can burn it to CD and pass it along far and wide. Thank you, LibBerte, for posting this. I think if we started giving a CD with this to a few people and ask them to pass it along after they are done, we would finally have some honest information to work with.
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