Posted on 09/03/2005 8:02:05 PM PDT by abletruth
What’s worse than Enron and Worldcom?
STOCKGATE, the biggest scandal to hit the markets yet!
By: Kevin M. West
Americans saw the television airwaves lit up this week with closure coming to the Worldcom fiasco by way of the CEO finally being held accountable for the crimes committed. Now we can finally sit back and say to ourselves “justice has prevailed and our SEC is really on top of their game”. Or can we?
The SEC has gone after Worldcom, Martha Stewart and Enron, but what about the biggest fraud in the market? Are they attempting to really go after the big guns, or is that smoke and mirrors hidden by these relatively small fish?
What could be bigger, you ask? We are happy you asked. Let us first show you a video of Senator Bob Bennett explaining this GIGANTIC hole in our market that is sucking trillions of dollars out of our country and out of investor’s pockets. Senator Bennett tells (watch the video at http://www.americaneedstoknow.com/senator_bennett.htm) SEC Chairman, William Donaldson, that the fraudulent action of naked short selling needs to be stopped! Senator Bennett explains that naked short selling is the selling of shares that haven’t been borrowed (as in the normal practice of short selling, the legal kind) and that don’t ever planned to be borrowed.
So, you ask, naked short selling is actually the selling of fake, counterfeit and non-existent shares to the investing public? Fake shares for real money, isn’t that a crime? YES, it is!
Now that you know that naked short selling it is NOT some sort of a conspiracy theory. It’s also not an excuse thought up by devastated investors looking for an explanation of why they lost their life savings through bad investments nor is it a hype used by stock promoters to have an excuse for their failing company. These are reasons that some of our tax paid government employees like Annette Nazareth (head of the SEC’s market regulation division) wants the public to believe. http://www.investigatethesec.com/DP270205.htm
Do we have your attention?
The SEC admits that naked short selling exists. They confirm this by putting Regulation SHO into effect this past January. So, for them to say it isn’t a problem is ridiculous. Of course, that regulation is so simple to get around that a child could figure out the loopholes in it. And, not only has the regulation proved worthless, but the SEC even GRANDFATHERED in these criminal acts that happened before this year! Would the Secret Service or FBI let you or I make counterfeit shares and sell them world wide on the open market and then tell us that we are forgiven from the past crimes, just don’t do it anymore…. “Please, with honey and sugar on it”. Of course not.
Why is the SEC not worried about this problem? We believe the SEC has suddenly become worried about this problem, because it can no longer be swept under the carpet. But now, the problem is so large that it could possibly bankrupt the entire market. If you thought Worldcom and Enron were huge frauds, you haven’t seen anything yet! We are talking TRILLIONS of dollars stolen from investors and businesses over the past several years. And where does this kind of money go? Not to the “Good Guys”, you can bet.
We have heard many stories of people that have lost entire savings and retirement accounts due to this atrocity. Families just like yours that have invested into good companies with brilliant ideas and products. Ideas and products that could have made this world a better place. What happened to these companies and the people that invested into them? They lost everything to a market full of fraud and corruption. Fraud and corruption so deep, it has to be protected at the highest levels. Once these businesses are bankrupted because of these crimes, the evidence vanishes with them. The criminals never have to pay and you never recover an investment that should have never gone bad.
Are there some bad companies and investments out there, sure there are. But the REAL bad companies and people are the very ones we trust to make sure our investments are safe. Trillions of our investment dollars are in the hands of crooks that are allowed to regulate their own actions. (SRO’s)
Can you imagine giving your life savings to a criminal to invest for you and let them be responsible to only themselves for taking care of your investment? Guess what, if you invest any money into the market, that’s exactly what you are doing every single day! See, the market is basically run on a merit system called an SRO or Self Regulatory Organizations. But I thought the SEC was in charge of regulation, you say. That’s funny, so did we!
Can you imagine what these unregulated, SEC protected and fearless thieves are waiting to do with trillions more dollars from social security funds that the President wants to give them? We don’t even want to think about it.
Now then, you think you may want to get your Senators and members of Congress behind Senator Bennett and get this fraud taken care of and put the REAL criminals in jail?
Stand up America, and take your country back!
Respectfully,
Kevin M. West
www.americaneedstoknow.com/stockgate.htm
Petition Status Report *Audio Clip* Bear Stearns implicates Regulators in Cover-up to protect Wall Street Fraud : 5 minutes excerpt of 1
paranoia about things people don't undertand alert.
all shorts are pond scum
Spitzer too will pass.
For a minute there, I thought you were going to tell us that Global Crossing had made it to the indictment stage.
Traders and market makers do this all the time when they think a stock is headed down - and they get clobbered when it goes up in spite of their best efforts to drive it south!
invisible I don't think you understand, the markets have 18% of all shares as FTD daily..."Failed To Delivers" so the counterfeiting is rampant, seems the only people that don't believe there is a problem work for the brokerages, we need to go totally electronic.
Watch the Congress get involved soon because there is one company that has legally proved there are over one trillion shares of it's stock floating around as markers in accounts in 64 countries....Yea that's One Trillion with 15 zeros...
abletruth
My first thought is that if the buyer knows that he's not getting the stock, then who cares whether the shares actually exist?
All they are doing is placing a bet on where the price is headed.
Of course, if the buyer doesn't know that the shares don't exist, then that's another matter.
What a b.s. article. There is nothing inherently immoral in uncovered short sales by third party investors. The concerns are simply first, suitability and second, credit. Brokers already have a legal obligation to ensure that unsophisticated customers are not making trades that are unsuitable for them, which may well include short selling, depending on the circumstances. And institutions are required by margin regulations and their own prudent self-interest to make sure investors have enough assets to cough up their losses on short-selling, if they guess wrong, because the exposure in theory is limitless.
This is Naked Shorting not Shorting, now it is just referred to as counterfeiting because that is what it is. The DTCC allows he stock borrow program but doesn't enforce the shares to be returned?
Ask some companies like Delta Airlines, Krispy Kreme, Onmi Media, Casavant Diamonds. 85% of all hedge funds are located in the Caymans...it is not for the sun and fun.
able
all over the map here. going totally electronic, ah, yes, this is a panacea, isn't it? I've decided that's The New Utopia. Once everything is electronic, everything will be OK.
short selling is as misunderstood a subject as there is. Already on this thread there are "hang all shorts" posts, when really it seems that, if there's a problem, it's counterfeiting, which is a different animal altogether.
invisible...I am not talking about legal short selling. I am talking about naked short selling...as you say two diffewrent animals. The proof is abundant and about to be made public.
A Statement by Bear Stearns' General Counsel Bill Philek -
By DP
On the December 13, 2004 Conference Call regarding regulation SHO, with Peter Murphy, senior managing director of the Bear Stearns Clearing Division in attendance as part of the panel (as recorded and available as audio here - requires Windows Media Player):
"To give you that brief introduction in Reg SHO, the history (of) how we got to where we are today. For the past few years we have been hearing from many different regulators regarding their concerns about the increase in the level of fails that they are seeing. They believe, and they have stated on numerous occasions, that one of the primary causes of the high level of fails was that various participants in the short sale process, prime brokers, executing brokers, clients, were not following already established rules."
Here it is, in black and white. Proof positive that the regulators are aware of violations, are concerned about the increase of violations, and know the cause, and the culprits.
This implicates the entire broker/clearing house/hedge fund network in securities violations, without enforcement actions by Regulators, who instead looked the other way. Exactly what these high level of fails and illegal short sales did to the markets will be determined in State and Federal courts across America. This also implicates the Regulators in aiding and abetting the fraud.
So for any elected officials who doubt that the NCANS take on the problem is, if anything, less alarmist than the situation deserves, I would direct you to the above statement and caution you to think long and hard as to the chronicle of abuses it confirms.
And then decide whether you are part of the problem, or part of the solution.
The source of the info below is www.ncans.net
Short sales are nothing new. Where's the fire?
I worked at a medium sized brokerage in Seattle in 96. One of the reps created 2 large short positons, pending delivery. Well, the client never delivered and the stocks, went up. The firm lost 15 million, fired the broker.
Story was in the papers, and in the WSJ too, if I'm not mistaken. The client was illegally selling short, but since the stock went up, didn't cover. Not sure what happened to the client, but the broker got a job at another firm, saw him recently.
You can sell, and you can sell short. You're only allowed to sell short on upticks and there must be borrowed shares available. Naked short selling is illegal, for good reason.
I wish I could understand what you are dicussibng.
Is there any way it can be explained so am elderly person who does understand short selling or I guess buying.
I means, to me, one just bets weather a stock is going up or down, you are in reality just betting. like gambling. Please try to explain it so I will at least have a general idea.
selling short means selling shares you don't own, that someone has lent you. That is generally a speculative position although one can imagine times when it would be hedging to do so. The shares must either be delivered or repurchased to close out the short position.
naked short selling means this is done without any clothes on. ha ha -- just kidding. naked short selling means that you haven't borrowed the shares you're selling short. that is fraudulent and is not a new activity.
I Believe it = If you have a real time trade screen watch MRKL trade 10-20 million shares in a day (90 Mill) float day after day.
If you are tuned in to how stocks trade you will see a manipulated stock after watching the trades for 5 min. It trades like there is 10 billion shares float.
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