Short selling is not the same as a "naked short." You don't have to have the money put up front on a naked short -- and if you do enough of them,
you can create a self-fulfilling reality.
Listening to Thom Hartmann tonight;
Bear Stearns had as much as 1.1 Million naked shorts in one day -- for a series of days.
If a short sell does not deliver the stock in 6 days it becomes a "Failure to Deliver" and gets flagged. Under 3 it is in limbo. So if you can bury
a stock in 5 days, this can be profitable because for almost no money you can destroy a company -- the risk is if you don't bury it and have to cover
the shorts. Only the SEC knows all the details of what has gone on.
Large hedge funds seem to be involved in this on a regular basis now.
A small group of managers, some brokers, and some complicit regulators at the SEC. The SEC says they are looking into it but there doesn't seem to be
any movement. When SEC investigators leave their jobs, they end up going to work at Hedge funds and their lawyers. Lot's like regulators in other
Gub'ment jobs (not to get political).
The Depository Trust and Clearing Organization.
Mark Mitchell at the Mitchell Report -- check him out
>> So this is what I thought when I wondered; "How does a company valued at about $200 a share become worth $2 a share?" Even executives at Bear
Sterns might benefit from a collapsing company. It's really share-holders and people in their accounts who get hurt. But when you get bought out --
you get salary and bonus based upon the largess of the new owner.
While the fundamentals of our economy are going South -- what we are possibly seeing here is the biggest bank robbery in history. Sensing that the
party is over when a Democrat like Obama takes over, the Gordon Gecko's are taking as much out of the market as they can -- profiting from an
inevitable melt-down. Or perhaps, trying to repeat history while making sure they profit from it this time.
Another bit of evidence that the Bail Outs and regulators are all
involved in massive fraud
A couple of days before Lehman fell and all hell broke loose on Wall Street, Floyd Norris, the chief business correspondent of The New York Times,
published a blog (headline: “Short Sale Conspiracies”) wherein he implied that I was mentally insane for suggesting that Deutsche Bank Securities
had been caught selling “massive amounts of phantom stock.”
I promise to take this up with my psychiatrist, but first let me tell you a bit more about the peculiar case that led the New York Stock Exchange to
hand Deutsche Bank Securities the largest fine in history for violations of SEC rules designed to prevent the creation of what the chairman of the SEC
has called “phantom stock.”
The lions share of our bailout is going to 9 US banks with NO GUARANTEES or leverage to help the economy. The banks are NOT being nationalized in
anyway that matters.
The best way to rob a bank is to own one.
>> This is all to buy 3 weeks to keep as many Republicans in office as possible. I'm trying not to be political here -- merely reporting a bank
robbery. Some of the culprits happen to want friends to be doing any future investigations.
The banks lending to each other is reducing. With those in the know worried about the regulators being in on the scam. Any investment in a company can
be destroyed, because a hedge fund can destroy it. 401k and private investors will go bankrupt as a rampage of consolidation eats up companies. This
sort of greed and corruption could well sink this ship.
>> Beyond the mere greed, the country has been eaten up on fiscal policy;
Nothing to protect trade -- that helped China and Japan and even India.
Nothing to put more money in the hands of the people.
More proposals to Lower capital gains -- which means more big companies buying up more small ones, and help with big investors getting out of a
particular stock, meaning things will get LESS stable and more consolidated.
This is treading water and give-aways to the rich in order to make it past November. Then after that -- NOTHING to make a market to attract cash flow.
The consolidation and huge sums of money will allow the results of an election to matter less.
They don't want things to get better for the public and they want to reward the crooks. How soon until we learn that this didn't work? Remember to
act surprised when the media shows shock and dismay. Democrats of course will be blamed.
Everyone has to realize they all played their part in this mess. Especially because
the President is not King folks, Congress has to concur for them to do anything and Congress on both sides of the political arena has ALLOWED
everything both of these Presidents have done to us. 
