Posted on 10/25/2008 4:43:57 AM PDT by TigerLikesRooster
Ping!
Been alot of grumblings lately. Off in the distance but coming closer.
Rumors of a Comex having a default on delivery for silver coming to a theatre near you, in December.
If that happened, $100/oz silver would be cheap by comparison.
Naked short selling is like betting with a bookie with a promise to pay. If you lose the bet, you simply “fail to deliver”, if you win, you get the money. The problem is, Vinny the bone breaker(the SEC) isn’t breaking legs and should be.
Supposedly, alot of folks who think they own stocks - don’t.
They own FTD’s.
And if the magnitude of the problem ever really comes out, it would destroy the exchanges.
Another way I have heard that opening quote is
“He who is short in markets risen, must pay his debts or go to prison.”
There must be a catchy corollary to cover mortgages in falling markets.... Where are the wordsmiths?
Nice site. Thanks for the link.
I don’t get it, give me some schooling - how does ‘naked’ short selling work?
You are selling something you don’t have? How do you make money? And this differs from fraud, how?
I see you are still folding away. My folders are still running, but with very little of my attention.
1) In regular short selling, you borrow stock which you then sell. If it goes down, you buy it back more cheaply and give it back to where you borrowed the shares from, and you have made money. If it goes up, you lose money.Why doesn't the SEC enforce the rules better? Enforcing rules on the politically powerful may result in getting hassled from their pet congress-critters.2) Naked short selling is when you sell without borrowing the shares.
3) Yes it is supposed to be illegal except in certain specific cases (but not enforced on the big boys)
4) Where it gets really interesting is a naked short seller may potentially sell more shares than actually exist
I have read two books that discuss the issue. Some key names are mentioned openly. Wall Street criminals were actively engaged in more monkey business. Left free to engage in fraud and make billions raping the public. WTF is going on, here ___________ ? !
2) Naked short selling is when you sell without borrowing the shares.
Does this mean you could sell shares that you do not own, without knowledge of person who actually owns said shares.
If so does that not put onus on unknowing shareholder to produce said shares??
I'm saying that you could sell shares that do not exist.
Think of the stock market as one huge eBay. I offer shares for sale. I don't tell buyers that I don't actually HAVE the shares on my shelf (thinking that I can acquire it more cheaply in a little while, but before you complain about not getting delivery). You buy the shares I'm selling. I get your money, and then I'm supposed to ship you your merchandise.
I have (technically) 3 days to deliver but some big sellers might take as much as 21 days to deliver without getting slammed. Sometimes, the shares don't get delivered at all.
You start to get the picture?
I sell shares of something I don't own. I have 3 days to deliver them. The price of the stock goes down, I buy those shares back on the market and give them to you as promised. In this instance, I've made the difference between what I sold them at, and what I bought them at. What is happening however is that, I sell shares I don't own at say $10 a share to you. 3 days later, the share is up to $15. Well, that means, I'd have to buy them at $15 so instead, I'll just not give them to you and give you your $10 back. I "failed to deliver". Oops, my bad, I bet wrong. How about this... I sell YOUR house for $100,000. You aren't even aware that I've sold it. 3 days later, the buyer comes to me and wants the deed. I offer you $80,000 for it, but you want $120,000 so I go to the buyer, say "sorry, I failed to deliver, here's your money back". In the real world, the buyer SUES me. In the freewheeling houses on Greed street, everyone shrugs.
I get picture, anyone else sold something they did not own, then fail to deliver or refund purchase price would see inside of jail cell.
I will stop before I get banned!!!!!
If Obama's elected, this is going to get much worse.
I’m trying to imagine “worse”. We don’t have an R in office to stare at dreamily while the country goes down the toilet?
Worse is using problems in the financial system to take them over. Forget your pension and 401K - Obama’s going to “spread the wealth” - and the same for Social Security. Those who didn’t put in a dime will get more - those who played by the rules will get less. It’s how “spreading the wealth” works.
If you need to get bullion, get it directly from the mining company.
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