1 TRILLION DOLLARS
Posted on 03/31/2005 4:31:37 PM PST by Flavius
After over a year of promises, postponements, and delays, Dateline finally confirmed today that they will air their report on the stock market scandal on Sunday, April 10th, at 7 pm ET. The segment, dealing with the scandal dubbed "Stockgate", has long been anticipated by advocates pushing for reform in the stock market, and was first confirmed by The Faulking Truth last June. This is an excerpt from that article:
"It's been called the biggest financial scandal in the history of the world, with incurred losses estimated by some experts at well over $1 trillion dollars. It's a scandal that involves over 1,200 offshore hedge funds, over 150 US brokers, and has already bankrupted over 7,000 US companies in the past six years. According to many of the lawsuits filed to date, the crooks include terrorist groups and organized crime syndicates. Sources say that this scandal, which involves an intricate system of selling electronic counterfeit shares of stock in an effort to destroy the market value of small publically traded companies by utilizing a method known as "naked short selling", will eventually implicate almost every major broker in America, all of the governing bodies that oversee trading, and will extend into Canada and Europe."
Sources at the time told us that the Dateline story contained information that would "blow the roof off of this scandal", and that Dateline had already filmed over 100 hours of explosive footage, with interviews from class action attorneys John O'Quinn (of the Houston law firm of O’Quinn, Laminack and Pirtle), and Wes Christian (of Christian, Smith, Wukoson and Jewell), who along with the law firm of Heard, Robins, Cloud, Lubel & Greenwood, who are representing clients in dozens of lawsuits filed against the SEC, the DTCC, and several of the country's largest brokerage firms.
"What's Up With The SEC?"
Since that time, we have learned that officials from both the SEC and DTCC have been interviewed by Dateline, and numerous other recent developments have (at long last) triggered a frenzy of media coverage over the past few weeks. In addition to that, ads have been taken out in several major newspapers, and the roles of hedge funds, who specialize in shorting stocks, have been brought into question in other fraudulent schemes as well. In fact, in an ad in today's op-ed section of the New York Times (March 28, 2005), in an editorial entitled "What's Up With The SEC?" the conservative Washington Legal Foundation ( http://www.wlf.org/ ), blasts the SEC for "sitting on several complaints of misconduct filed by the Washington Legal Foundation, and supported by the U.S. Chamber of Commerce, detailing examples of questionable stock manipulation by short sellers and class action attorneys". According to WLF Chairman Daniel J. Popeo, in one case, information about a class action lawsuit was leaked to short sellers who, in turn, made a huge profit by shorting the stock before the information was made public. Popeo also claims that "in other cases, short sellers and trial lawyers dish dirt about a targeted company to financial reporters, analysts, and regulators, and the damaging news sends the stock price plummeting, thereby forcing the company to settle. Short sellers then reap the profit when the stock drops."
"If I Only Had a Hedge Fund"
In a related development today, the New York Times online edition ran an article about the incredible proliferation of hedge funds today entitled "If I Only Had a Hedge Fund", in which they said that the number of hedge funds created since 1999 has increased by 209%, with 1,406 new hedge funds introduced in 2004 alone. A recent study released by Credit Suisse Boston said that hedge funds now account for half of all stock market activity, and that they now manage a staggering $1 trillion in funds. Why are managers tripping over each other to start new hedge funds? Because instead of the small fixed percentage that they get by managing traditional funds (sometimes as low as 1%), they instead 1% plus 20% of any profit the hedge fund generates, which has made many of the hedge fund managers instant multi-millionaires. In fact, according to a survey in Institutional Investor magazine, the 25 highest paid hedge fund managers earned an average of $250 million in 2003. To read the New York Times article, go to: http://www.nytimes.com/2005/03/27/busine...
With those kinds of profits to be made, it is any wonder that the SEC, the DTCC, brokers, and hedge fund managers have begun to circle the wagons? Every time a share trades hands, every one of them gets a piece of the action. Even legitimate hedge funds, those who don't engage in naked short selling, profit when their corrupt counterparts drive down the price of stocks through illegal naked short selling. And the SEC, NASD, and DTCC take their cut for every share that is bought and sold, whether that share is real or counterfeit.
If the SEC needs a smoking gun, they need only to take a close look at Global Links Corp (OTCBB: GLKCE), where one investor recently bought 100% of the issued stock AND another investor bought 15% of the same stock, only to watch hundreds of millions of phantom shares continue to be bought and sold. While the SEC has ignored this curious case, Congress hasn't. Senator Robert Bennett cited the Global Links story (as first reported by Financial Wire) on March 9th when he grilled SEC Chairman William Donaldson about the naked short selling scandal, "this article just last Friday in a national publication indicates that people are still selling short shares that they don't have and clearly are never gonna acquire." This stock is merely a microcosm of the larger problem that pervades the stock market system, and serves to illustrate how pervasive the fraud really is.
It is vitally important that the Dateline story gets the attention it deserves. We can only hope that their report tells the real story of this scandal, and that Congress and the major media will join us in our mission to, at long last, restore trust and credibility to our stock markets, so that honest investors can once again invest their hard-earned money and have a chance to achieve the American Dream.
To contact members of the US Senate Committee on Banking, Housing, and Urban Affairs, go here and click on the members' names: http://banking.senate.gov/index.cfm?Fuse...
To contact members of the Senate Finance Committee, go here and click on the members' names: http://finance.senate.gov/sitepages/comm...
Sign the petition at www.investigatethesec.com
Lets see, potential market crash, and germany at 12% unemployment...
Shades of 1939, even spain has turned socialist...
So if I understand this correctly, instead of actually borrowing from shares held in street names, brokerages have been selling short for people whether the brokerage holds the shares to or not?
So if I understand this correctly, instead of actually borrowing from shares held in street names, brokerages have been selling short for people whether the brokerage holds the shares to or not?
Another dirty little secret for you.
When they short stock and the company goes bankrupt they owe zero taxes on their profit because the trade is never closed due to the fact they never cover the short position.
1 TRILLION DOLLARS
Thank you sir did not know this...
NEW YORK (AP) - Caterpillar Inc. shares rebounded Wednesday after two Wall Street analysts told investors that a recent pullback in the heavy equipment maker's stock price represents a buying opportunity.
The Peoria, Ill.-based company led many of its rivals lower a day before when Morgan Stanley issued a report saying the sector might have reached a peak. The report noted Caterpillar stock was trading close to its historical ranges and urged investors to take profits, sending shares of the Dow component down by some 5 percent.
But on Wednesday both Merrill Lynch and Bear Stearns sounded a more upbeat tune, and shares of Caterpillar, a component of the Dow Jones Industrial Average, rose $1.28, or 1.4 percent, to $91.08 in afternoon trade on the New York Stock Exchange.
"Caterpillar's stock was down almost 5 percent following concern on the street that the construction equipment industry was reaching a peak within a 'no long-term growth' context, and as a result Caterpillar is trading near the top of its historical range," said Bear Stearns analyst Ann Duignan. "We believe these concerns are overdone and that the pullback offers an excellent buy opportunity for the stock."Full story HERE
Lots of money being made both long and short.I wonder if anyone looks at these financial houses to see if they are attempting to manipulate prices.
Yup. Before brokerage houses execute short sales, they are supposed to make sure they have the shares available to lend out. Turns out they often don't bother and the regulators do nothing about it. If the shares are not located by settlement date, you have a naked shortsale--the sale of non-existent shares.
The supply of long shares is necessarily limited to the number issued by the company. But when naked shorting is tolerated, people can sell an unlimited supply of nonexistent shares and artificially depress the price--if not drive it to zero.
Don't even get me started on Energy Futures.
I buy gas for my company, millions of dollars, the bastards waited for the close of the month to jack up the prices.
The natural gas and for that matter oil supply is plentiful.
The snow has not melted they are bi.ching about HOT summer...
People I talk to is that the HEDGE funds and other clowns are moving into the market, it has nothing to do with supply and demand as commodities markets are normally traded as...
But there are plenty of banks and hedge funds making sick amounts of cash...
The only posivite is that when President brings the lets drill everywhere plan, the soccer moms whent they realize they cant put their little girls scouts in toyota prism, and gas is at 3 / gallon. They will say you know what. Drop the caribeou and make them into oil as well... need to juice up the escalades, and expeditions and bradley's fighting vehicles...
put out your valets you will be paying for energy for a while...
hehe not to mention the chinese ...
All my life I have been of the opinion that unless one is educated and has experience in the stock market, in a big way, then one is merely one of the cash cows keeping the system going, and contributing to the trillions constantly lost to keep the scams going.
Case in point last week there was a similar decree from an analyst that said the energy sector of stocks was possibly maxed out and taking some profits rather than holding might be a good idea.
"On the heels of bullish comments about the oil-service sector Tuesday, Ehrenkrantz analyst Prabhas Panigrahi downgraded the group, recommending investors sell into strength. "All of the stocks were trading lower at midday and the Philadelphia Oil Service Index (OSX: news, chart, profile) shed 3.3 percent to 134.40 points."
This as oil was heading to $57.00/barrel.Forced the price of energy stocks down probably to lead in to the runup of the summer driving season.Maybe I`m crazy but I suspect someone wanted to get energy stocks down a little to purchase before the possible runup.
Its about time this is getting some air time. Naked short selling has been killing Nasdaq companies for years. They do it off shore and the every major brokerage house is in on it. They are starting to get hit with class action suits by Houston based lawyers. Its about time!!!
I call it running around the table legs fighting for the crumbs that fall.
Well lets hope it holds. With minuteman holding the rear at Alamo.
And seems *gasp* "good" attorneys chasing down thiefs from the ivory towers, just maybe, there is an giant awakening...
that great thing about this country the regular American people being fed up with status quo....
Which means that virtually everyone who has bought or sold a stock has been affected because an excess supply of shares for sale would conceivably affect the entire market. The ripple effect would go around the world. Am I imagining things, or does this kind of corruption have the potential to trigger a massive correction?
well im thinking world war iv just because im a paranoid stock holder
1939 some blame on naked shorting (yes even then)
Germany 12% unemployment...
on and on, basically no one will trust the market which caused a rapid crash of securities ....
its the end of the world....
or they will send martha to jail again cause she's bad
I don't know if this has been able to stop naked shorting.
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