|It's The End Of The World As We Know It |
It's The End Of The World As We Know It
Location: Blogs Bob O'Brien's Sanity Check Blog
Posted by: bobo 11/23/2006 10:40 AM
Sign the Market Reform Petition Now!: View it here.
Everyone should take out a moment to read the following two spreadsheets from the Securities Industry Association, wherein the NYSE tallies up its liabilities and assets, per that body's requirements.
Spreadsheet one is the latest, for Q2, 2006.
Spreadsheet two are the totals for the last 5 years.
Note that the total FTD's for Q2, 2006 are $27.7 billion, and the FTR's are $35.4 billion. That's a lot more than the $6 billion the SEC and DTCC use as their total to describe the size of the problem, huh? Like ten times as large, JUST ON THE NYSE?
And that is marked to market. The actual cost to buy it in would be more like 10 times that.
So a $60 billion problem - not adjusted for the actual buy-in cost, which could easily be more like $600 billion - not a $6 billion problem.
No wonder the SEC's number one job is to prevent short squeezes. Where would all that money come from to cover what had been STOLEN from the system? It's all gone now - paid out in big bonuses we read all about in the WSJ every year. It isn't in the system anymore. It has been taken, and the asset it was exchanged for never delivered.
What else has the DTCC lied to us about? The SEC?
How about the following: look at the repo agreement column - $1.879 TRILLION.
Reg SHO has a loophole for repo agreements - if you have a repo agreement, which is basically a contract to buy back the shares you sold, you don't have to report the sale as a short sale, as you are still considered long, as is the new buyer, who can then sell them again, execute a repo agreement, and also be long as well.
It's a handy way to use the same million shares over and over and over again to sell into the market, never reporting your sales as short sales, but depressing the price of the targeted stock as a virtually unlimited amount of stock hits the demand.
That would be almost $2 trillion of repo agreements.
So let's all, on this Thanksgiving day, wonder aloud how $63 billion of FTDs and FTRs can possibly be reported as $6 billion of the same animal (unless these are pre-netting amounts, which would make sense - if $6 billion is post netting, and netting equals 96% of all trades, then one would expect the fails to be ten or more times as large, pre-netting - echoing what I've been patiently saying all along about netting and how it conceals the true size of the problem).
And recall that the $63 billion is actually more like multiples of that amount at the original sale price of the stock - the current market value represents the newly depressed price, not the actual sale price. So that is many times larger in actual dollars into the pockets of the scumbags who are taking that money from investors, and taking it out of the system to pay big bonuses and buy Picasso's and whatnot.
And then further think about what that $1.8 trillion of repo agreements means - what percentage of that represents promises to buy back that will never be executed, or better yet, represent a portion of the "ex-clearing" problem?
Most of it? Half?
This is all just for the NYSE. The NASDAQ is likely much larger. And the OTCBB, and the AMEX, and......
I have been mocked as an alarmist by the apologists who claim there is no systemic risk issue, no problem to be really really worried about.
Here we have documented evidence that my most dire predictions have been the tame version.
The system is stealing a percentage of the GDP every year via failing to deliver products. I would guess it runs around $500 billion to $1 trillion every year.
That is a massive theft of the nation's worth by a small segment of the population.
Now, for those who would argue that based upon the trillions traded every year, that hundreds of billions isn't a big deal, let's put that into perspective.
What if hundreds of billions of bank deposits were missing every year? Would you cite the total deposits of the US banking system, and argue that $500 billion to a trillion every year isn't a big deal?
What about if this was the blood supply? If your regulators and government were telling you that supply was safe, and then you found that it was HIV infected to the tune of 10, 20, 30% every year, would that be acceptable?
Folks, this is simple. You have been lied to by an enormously powerful system that requires your complacency and apathy to continue to steal what you worked all your lives to save.
This isn't an issue of being a bad investor, and picking bad investments. This is an issue of hundreds of billions of your dollars being stolen by thieves, just as surely as they would be stolen if they held a gun to your head.
The big lie is that your investment losses are your fault, and sort of deserving of shame and silence. Here is documented evidence that much of it is clearly money stolen by those who sell, and then don't deliver - a massive, coordinated effort involving most of the trusted entities who trade the markets on YOUR behalf.
Do you understand the difference between investing in a house in the wrong neighborhood, and being carjacked & having your wallet taken? Yes? No?
The apologists bang the "it's a bad company" drum to foster this belief in you - that you are a degenerate gambler deserving of what you get. What they won't do is address the very large, very obvious numbers you now have in your possession. Because that shows the amount they are flat out stealing. And they don't want to acknowledge the reality of the numbers.
Please send this column, as well as the links, to Specter for his December 5th hearing, as well as to every journalist you think would be able to read a spreadsheet. This is not a small problem. It is massive, involves the very government you pay to protect you, and is the systematic theft of the nation's savings on an unprecedented scale - and it can only end in a global depression of epic proportions, when the system decides there is nothing left worth stealing.
It's up to you to stop it now. You have the real numbers. Do something.
It will be interesting to see whether any journalists will even get near this now that it is blown wide open. You think Carol Remond, who has written so many "it's a small problem" articles will admit to misrepresenting the whole thing? Think that the Motley Fool will admit that their "ban" on discussing the issue is a blatant censorship attempt to stop anyone from knowing how big this is?
The numbers don't lie. $63 billion on the NYSE alone in Q2, at mark to market valuation, not counting the percentage of the $1.8 trillion of repo agreements that serve to mask another layer of this onion.
Folks? This is not a small problem.
What we have here is a mega, systemic-meltdown-scale problem caused by the brokers treating the markets like their own private piggy bank, from which they can take money and leave IOUs, to be tossed when they've driven the companies to zero. And our regulators, our elected officials, and our media have completely failed us. They have one and all colluded to facilitate the theft of OUR MONEY, and are now scrambling as the size of the theft becomes apparent.
De-materialization is just the final effort to destroy any asset rights you have, so they can conveniently turn the entire market system into a Federal Reserve type of scam, wherein assets don't back the chits you are paying for, but rather the "good name" of the broker does - and his name stinks to high heavens and isn't worth the spit it would take to put him out if he was on fire. Unlike the Fed's guarantee that the currency they distribute is backed by the full credit of the US Government, the guarantee you are getting is that your IOU is backed by the ability of your broker to trick enough new rubes out of their money to make good when you need out of the scam. The guarantee isn't worth squat. It is a sham, and is expressly forbidden by the 1933 and 34 Acts - for very good reason.
Starting to get this now?
Any facile smirking dismissals from the apologists? Any 'lilGW "there is no big problem" paid idiocy to try to feed to the masses? No? Nobody wants to chitty chat about tens or hundreds of billions failed, in black and white, on a spreadsheet prepared by the association that is also lobbying to change nothing about Reg SHO?
I hope everyone completely appreciates how coordinated this all is, how every strata of the entities chartered with ensuring this never happens have instead worked to obfuscate and misstate what has been going on.
Please propagate this blog to every message board and blog you can think of. No smoking gun required anymore - we have the actual data now, and it should scare the hell out of anyone that can read.
It is way worse than anyone ever was willing to admit. And now we can prove it.
They've stolen a lot of our retirements, and concealed the theft by lying and promising that the cash or the stock will be there when we check, or need it.
Guess what? They lied. It isn't.
And now it is absolutely obvious to even the dimmest.
Copyright ©2006 Bob O'Brien
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Re: It's The End Of The World As We Know It By Wicked World on 11/23/2006 11:58 AM
What would I do?
I would believe you.
Remember Aguirre! Remember Aguirre!
Re: It's The End Of The World As We Know It By bark, hide it and run on 11/23/2006 1:03 PM
Prosecutors in Munich have arrested and questioned six people over alleged attempts to transfer funds from Siemens to external accounts outside Germany. Prosecutors last week made the first arrests and searched Siemens' offices in Munich including that of Klaus Kleinfeld, its chief executive
Re: It's The End Of The World As We Know It By davidn on 11/23/2006 1:05 PM
I believe much of the trading outside the US is completely phantom. They never come to the US to cover, instead handling everything via repos. For stocks that trade a lot of European volume, you rarely see European brokerages or custodians pop up on the security position reports.
We've been tricked into talking about this as shorting, when much of the counterfeit are "phantom longs" via daisy chains of repos, borrowing, etc.
Clearstream is the suspected money laundering custodian that accidently overstated their assets by 1.5 trillion dollars (check Wikipedia).
I think many "naked shorts" are hidden by Clearstream, which owns the German exchanges. They enter into repo agreements with US custodians to mask the phantom nature of the shares.
This is the self regulatory association that manages international repurchase agreements. Rather than borrow shares, you buy them with a promise to sell them at some, possibly undated point in the future. The buyer is long and the seller is long by virtue of having a contract to repurchase.
The whole repo market is many quadrillion dollars, but the equity piece is almost $6 trillion or 1,000 times the $6 billion the DTC says fails to deliver. $6 trillion against the $31 trillion Cede & Co. owns.
"This market has a significant role in the international securities market as a whole by providing liquidity, marketability and in offering opportunities for the mitigation of credit risk. The most recent ICMA repo survey has set the lower boundary for the size of the market at EUR 5.8 trillion."
"Due to its inherent cross border nature, the international capital market is not subject to the same degree of regulation that governs domestic primary and secondary markets."
Re: It's The End Of The World As We Know It By refusing to cooperate, make me on 11/23/2006 1:18 PM
Monster Worldwide Inc., owner of the most-used online job list, fired general counsel Myron Olesnyckyj amid a probe into whether executives manipulated the dates on option grants.
Olesnyckyj, suspended from his job Sept. 16, was dismissed for cause, the New York-based company said today in a statement. Monster cofounder Andrew McKelvey quit the board last month after refusing to cooperate with the company's inquiry.
The executives are among at least 59, including 10 general counsels, who have left their jobs because of options probes. A total of 187 companies have disclosed internal or federal investigations into whether they backdated option grants to when the stock was trading lower, artificially boosting their value. Companies have taken a total of $5.25 billion in charges to account for expenses associated with misdating grants.
Re: It's The End Of The World As We Know It By kevin on 11/23/2006 1:28 PM
The fundamental problem is that they think they are "stock bankers".
They're not. They're "stock brokers".
The difference is that a broker brokers a transaction. A real estate broker matches the person who wants to buy a house to the person who wants to sell a house. The wheat broker matches farmers to grocery stores. A broker is not the owner of the asset and should only receive a small commission to facilitate the trade.
For some reason, these custodians think they are banks and that our shares are some form of fiat currency that they can create out of thin air or that they can treat as their own asset. How many times are your assets pledged as collateral for loans at the various levels all the way up to Cede & Co.?
If you own your cert., they can't do that.
The problem for them is that legally, they aren't banks and they can't treat the asset as theirs. They are supposed to be holding it for you, in segregated form in cash accounts as YOUR asset.
The asset is yours and if they have treated it differently, than they may have committed crimes, including interstate wire fraud. To cover the crime up with fake fail numbers, falsified voting procedures, confirmation slips, etc. is obstruction of justice.
Re: It's The End Of The World As We Know It By denied any wrongdoing, where do I pay fine? on 11/23/2006 1:41 PM
Lone Star, the most active private equity fund in Asia's third-largest economy, had been prevented from completing the deal agreed in May as prosecutors looked into allegations that financial data on KEB was understated to help Lone Star buy the bank at a bargain price of $1.2 billion.
Re: It's The End Of The World As We Know It By How they screw us! on 11/23/2006 1:55 PM
If you want to see first hand how these scumbag naked shorters manipulate a stock watch th trading in Jag Media (JAGHE) tomorrow. Watch the trade cancellations (naked shorters), watch trades at fractions of a cents, crosses ,large drops in prices. You name it and that manipulation is done in JAGHE. However these naked shorters are stuck up the koola and their time has run out!
Re: It's The End Of The World As We Know It By bobo on 11/23/2006 2:06 PM
Kevin: You have it absolutely correct. They want to be bankers, rather than brokers. Except that isn't the way the system is supposed to work. Those aren't their assets. They aren't in the stock creation business. The 1933 Act specifically makes illegal stock creation of this type. It is a felony. This isn't supposed to be a market where some faceless scumbag takes your money and exchanges it for an IOU for which they lack the asset. That is fraud. Plain fraud.
And I think we are all beginning to understand just how big and entrenched this all is. It isn't a couple of rogue funds - it is the prime brokerage system, as well as the clearing system, along with some of these rogue funds.
That's basically the whole system.
No wonder they will buy or threaten or destroy anyone or anything that threatens their thievery ring. It is the single biggest theft in history. Makes the S&L thing a sliver by comparison.
And now we know the actual numbers, at least on the NYSE. Question is whether Specter will understand, and bring this up at his hearing.
"Let's turn to the SIA spreadsheet for Q2 on the NYSE's assets and liabilities. Care to explain to me how they are showing $63 billion in FTDs and FTRs while you have been telling us the whole problem is only $6 billion?"
"Uh.....uh....I take the fifth."
Re: It's The End Of The World As We Know It By davidn on 11/23/2006 2:24 PM
We also know the international repo market for US equities is $6 trillion as per these guys:
That's $6 trillion when Cede & Co. only owns $31 trillion altogether.
Re: It's The End Of The World As We Know It By bobo on 11/23/2006 2:36 PM
Davidn: That is trillions of dollars taken out of the system we will never see back. It is gone now. The money was stolen, whisked away elsewhere. We are left with essentially worthless IOUs we can hope can be exchanged for real dollars before the meltdown happens and the majority get stuck with a shrug and a lawsuit.
Seeing the confirmation is sort of stunning, really. Money, taken in exchange for assets, wherein the assets aren't there, and the trades have been used to destroy the value of the remaining legitimate assets.
I can't imagine this being any worse at this point.
Re: It's The End Of The World As We Know It By davidn on 11/23/2006 2:50 PM
Bob, the Securities Act wouldn't apply to a brokerage in Canada or Europe. My guess is they are taking our asset and selling it via repo to the foreign brokerages.
My first question when trying to figure out who owned Cede & Co. was whether the assets they held in trust were encumbered in any way. They think the assets are theirs and the pledge them as security, sell them or never bother owning them in the first place.
The sad thing is that once you make your money, no one asks where it came from. A crook can hire a lobbyiest just as easily as a successful business can.
I can imagine it could possibly be even worse than we've learned so far. It's timely that we can get at least this fail data to Specter. It's hard to argue against facts.
Has anyone in the industry perjured themself to claim this is a $6 billion problem?
Re: It's The End Of The World As We Know It By grandfather clause2 on 11/23/2006 2:59 PM
Does that mean we cannot force anymore companies into chapter 11 and buy them for pennies and tell the shareholders tough shit, the shares are worthless?
Why you want to mess up our game? It was just getting fun.
Oh well, we took over most of what we wanted and thanks to grandfather clause.
You are screwed. Maybe we could just do a grandfather2 and start over. We will do better next time covering our fraud, we got dumb and greedy.
We won't do that again.
Are you going to force us to cover the naked shorts?
No, you are a poor dumb american that is to dumb to understand how
the system works. It is not my fault that you are to poor to bribe someone, to get
your needs met. That is your problem. I can afford to buy the media,judge, lawyer, accountant and the lobbyist and the politician. So go back to your cardboard box and hold out your tin can. Stop blaming us for all of your troubles crybabies.
Re: It's The End Of The World As We Know It By kevin on 11/23/2006 4:20 PM
The crooks plan to crash the system, 1929 style so they can cover at pennies on the dollar. They gained control of much of the wealth of the country the last time they orchestrated a great depression.
Let's stop them before they can orchestrate a crash. Let's make them cover at today's prices so we can make money for a change as the money transfers from their pocket into ours.
Re: It's The End Of The World As We Know It By Jeremiah 9:24 on 11/23/2006 4:21 PM
Gives one an idea of why the crime masters (1) want to take all these exchanges public and (2) want to acquire/merge as many as possible as soon as possible. Just like what happened with Refco, if they can get these houses of prostitution public, then a good portion of the financial loss is shifted to the investing public (plus the money masters can naked short them into the ground as they collapse, "laughing all the way" -- to borrow a holiday theme). And of course, if you control all the major exchanges, then there is no other playground for those who would love to exit Wall Street's cesspool.
It's tough to admit but the scam is too big to be allowed to collapse--or even be exposed; and as BobO noted, any crusaders will get bought or crushed before the gates can be crashed. Then again, all scams eventually collapse; the Federal Reserve is probably the longest lasting one so far, but how much longer can a fiat currency issued by a private banking cartel and backed by a bankrupt former democratic republic (now a de facto oligarchy) last? Maybe the banks are off limits, sort of a professional courtesy thing among thieves. So perhaps one might invest in them.
Re: It's The End Of The World As We Know It By feelin' fine on 11/23/2006 4:22 PM
That's great, it starts with an earthquake, birds and snakes, an aeroplane -
Lenny Bruce is not afraid. Eye of a hurricane, listen to yourself churn -
world serves its own needs, regardless of your own needs. Feed it up a knock,
speed, grunt no, strength no. Ladder structure clatter with fear of height,
down height. Wire in a fire, represent the seven games in a government for
hire and a combat site. Left her, wasn't coming in a hurry with the furies
breathing down your neck. Team by team reporters baffled, trump, tethered
crop. Look at that low plane! Fine then. Uh oh, overflow, population,
common group, but it'll do. Save yourself, serve yourself. World serves its
own needs, listen to your heart bleed. Tell me with the rapture and the
reverent in the right - right. You vitriolic, patriotic, slam, fight, bright
light, feeling pretty psyched.
It's the end of the world as we know it.
It's the end of the world as we know it.
It's the end of the world as we know it and I feel fine.
Re: It's The End Of The World As We Know It By feelin' fine on 11/23/2006 4:27 PM
My favorite line is "offer me solutions, offer me alternatives and I decline"...it implies that no matter what, we won't back down from anything--even "the end of the world as we know it."
Re: It's The End Of The World As We Know It By don't F___ with this crybaby on 11/23/2006 4:54 PM
You are right. That was/is the shorts plan. Scare the hell out of everyone.
The more violence the better. It keeps the focus on the scare tactic. The thugs are mad, very mad. Even trying to scare and threaten or kill some of the people that are hunting them down. They want the parties to fight against each other and create as much chaos as they can muster up.
Panic is their goal. We will not. We will kick their ASS. watch.
We just need to get rid of the SCUM in leadership positions.
The American public does not know who
the F___! to trust.
If our elected officials do not get their shit together and clean up this mess.
It is going to get nasty. Very NASTY.
Enough people now understand what the hell is going on
and how the game works. We might see some hedge funds blow up.
The shorts plan to destroy is not going to work.
Re: It's The End Of The World As We Know It By Depression II TV on 11/23/2006 5:16 PM
Re: It's The End Of The World As We Know It By will we get them? on 11/23/2006 5:44 PM
'The bastards got me'
THE poisoned Russian spy breathed defiance at the Kremlin as the effects of a mystery cocktail pushed him towards death.
"I want to survive, just to show them," Alexander Litvinenko said in an exclusive interview just hours before he slipped into unconsciousness, and later died.
Re: It's The End Of The World As We Know It By the main players on 11/23/2006 6:00 PM
Alex Goldfarb and Alexander Litvinenko met in a Russian prison. In the late 1990s, Mr Goldfarb was director of a George Soros-funded project to tackle TB in the Russian penal system.
Re: It's The End Of The World As We Know It By what up? on 11/23/2006 6:59 PM
Prosecutors are investigating whether Siemens managers spirited some €200 million (US$258 million) into secret accounts to pay bribes to secure major contracts.
Siemens to 'drop Web TV in China
Siemens to sell unit to JV with Nokia
Re: It's The End Of The World As We Know It By feeble, weak old men behind the curtain on 11/23/2006 9:44 PM
This isn't a fight against Wallstreet. It's a fight against a handful of very powerful old men so insanely rich that they think they are above the law. Most brokerages are not custodians, don't have accounts at the DTCC and don't know anything about the prime brokerage business. 90% outsource their back office functions.
When your broker tells you your retirement shares are segregated, he probably believes it. He is honest when he tells you he isn't allowed to naked short. It's a priviledge reserved for the elite who think they own the system.
Many honest introducing brokerages struggle to pay their exchange and clearing fees as they face competition from $9.99 per trade brokerages that make their money screwing you on fulfillment and selling your asset via repos, loans and fails.
The men behind the curtain:
When you see a painting that took the artist a month to paint sell for $150 million, these are the guys that are buying it. They can't relate to the young person who works at McDonald's all year, saves up $500 and buys shares in a penny stock, hoping her research in the fundamentals will pay off. They can't relate to the young scientist working on a cure for aids who starts a public company, expecting the public market to fund the ten years it will take the drug to go through trials and make money.
12 prime brokerages control 83% of the market and are responsible for the problem.
It isn't a problem with hedge funds in general. I've met many managers and most play both long and short and play by the rules.
It's the Badians, Valentines, Rockers and Cohen's of the world that think they make the rules.
I agree with Bud that this is tightly coordinated and with Patrick that there is a Sith Lord.
Who is the M.aster M.anipulator behind the scenes? Can you guess? I can, but since we know their names, I think there are people even behind them. The real puppeteer keeps a low profile.
If you haven't read the Wizard of Oz, it is about the fight against the bankers (oz is the gold ounce standard and emerald slippers were the greenbacks that got Lincoln assassinated). People thought the banker was powerful, but he was a little old man behind the curtain pulling levers of power, levers that we could easily pull ourselves.
One lever of power is to pull your certificate and take control of your own asset.
If you are one of those miserable old men reading this post, karma is the reason your kids and wife won't talk to you and you are lonely, sipping cognac as you contemplate your shallow life chasing money when the secret to happiness is friendship and putting good out into the world so it will come back to you.
Re: It's The End Of The World As We Know It By feeble, weak old men behind the curtain on 11/23/2006 9:48 PM
Google "payment for order flow" and wonder if the $9.99 trade was worth it if your order wasn't filled on the ask and you had to bump up your bid, costing an extra $300 on the trade.
What kind of corrupt auction system let's brokerages accept payment to send the order to the brokerage of their choice?
Some market makers have to be the high bid to get filled. Others just put their bid artificially low and match the high bid, greasing the brokerage with a bribe (payment for order flow) to thank them for beating the auction system.
Re: It's The End Of The World As We Know It By feeble, weak old men behind the curtain on 11/23/2006 9:54 PM
How they spend the money they steal from you.
Re: It's The End Of The World As We Know It By rtway1 on 11/23/2006 10:10 PM
What do we have to look forward from here and what measures can be taken that will be shown to us that anybody has listened to our cry of desparity. I will never go down without a fight and take someone else out one for one. It is time to be counted and do something more than letters that are part of the cylindrical file. All we hear is how more we are being screwed and can do nothing more than hope that it won't hurt real bad. How about we drop the bomb that gets the attention instead of Herb and Jimmy on national TV. How about we all write CNBC about the info we just received as well Cramer and Herb 24 hrs. and 7days.. Let Marketwatch know what we know and challenge them to print it. And last but not least, our local so called elected officials who probably already have been compromised, to see if they have any gonads at all. If the dems want the repubs. on a skewer now is the time, problem is to find the person who is qualified to throw the stone, good luck.
Re: It's The End Of The World As We Know It By bobo on 11/23/2006 11:01 PM
rtway: Stay tuned. I am working as we speak on a mechanism to provide action to define our indignation. Once it is done, I will put out a request to fund the entity so we can take action for investors, rather than hope, or run ads, or protest. Enough is enough. My sense is that our only hope lies in taking decisive, immediate action.
It really is us against them, and they own the system.
Few fights matter 20 years after the fact. This one will be for our kids' futures. And our retirements. I think those matter.
Question is, do you? And if so, are you willing to get AARP and similar organizations involved?
Remember. It is OUR MONEY they stole and are stealing. That's the right word, by the way. Stealing. Not temporarily delaying the delivery of what we paid for, for years. Stealing. Such a simple word. So avoided by our noble press.
At the end of this, our watchdog press will have been found to have been so co-opted as to be guilty as the same scumbags engaged in the theft.
Nice work, noble journalists. We both know that word choice and grammar are extraneous to the pursuit of what got you interested in the vocation in the first place.
Shame on all of you for allowing a semi-literate blogger take you justifiably to task for missing or covering up the greatest financial crime of the last 100 years.
F*ck every single smug, contemptuous one of you.
You can't survive in a meritocracy. That's the plain truth. You don't have the talent, the vision, or the passion.
Shame on you for faking it.
Re: It's The End Of The World As We Know It By oldfeller on 11/23/2006 11:37 PM
Ditto, what he said, from thousands upon thousands of us here in the cheap seats who depend on the internet to learn and understand what`s really going on in the world. You can spin some of the news some of the time but this story is going to be told. The coming shakeup should be looked at by honest journalists as an opportunity. Tell the truth and by the way, when you are interviewing someone smarter than you on tv, shut up and let them talk.
Re: It's The End Of The World As We Know It By Green Eggs & Ham on 11/24/2006 1:41 AM
Sorry folks, they asked me not to tell and they make the best breakfast in the whole wide world and you know, I like my eggs free and easy.
Re: It's The End Of The World As We Know It By revenge on 11/24/2006 2:38 AM
Bobo, a brilliant post.
The internet makes it a meritocracy. It is inevitable that we succeed and inevitable that they fail with their 1929 crash. The Iraq fiasco, where the banking gansters or banksters tried to prevent an oil backed Dinar currency competing with the world fiat currency is fizzling. The NWO banksters didn't care to sacrifice American kids to help them save their global currency.
They can't move as quickly as we can and we will pre-empt their planned depression. They plan to move interest rates up to crash the housing market, causing bankruptcies. Their hope is that people will sell their shares to them so they can cover their IOU's at rip off prices.
SPREAD THE WORD.
YOU TUBE. MY SPACE. Send to a friend emails.
When we beat them:
I see a big stock squeeze, the biggest bull market of all time and massive wallstreet bankruptcies. It would be trillions transferred from them to the recipient of your viral emails. Maybe we can buy our own prime brokerage in the fire sale.
Tell people to pull their certificates!!!
The only thing I could add is to make it personal. We need to arrest the Nazareths and Brigagliano's for perjury and we need to put the Greenberg's in pillaries.
I left off the Weiss's, Cramers and Remonds / alias Redmonds as my observation is some people are learning it isn't smart to be the whore that fronts for the people that steal trillions from the rest of us. The three of them have softened their position. That alone is a victory for us.
Herb Greenberg is a little slow off the mark, but he will realize that he doesn't want to personify this crime. It could be time to post the funny bunny prison version of him.
My message is that it is near impossible we won't win. The only thing that slowed us fifteen years ago is we didn't realize the SEC and the senate banking commission was corrupt and on the take.
Now that we know that we have to go to the people that are being ripped off, it is inevitable that we will get justice.
If OJ can make mass consciousness in a day across the internet, then this can, too. We need to explain the scam in two sentences where those sentences are backed by proof.
I suggest emailing everyone you know that the SEC FOCUS reports prove that a minimum of $70 billion or $233 per man, woman and child in the US is counterfeit via provable fails to deliver and that those profits are being used to turn our democracy into a dictatorship benefiting the criminals.
The foreign REPO agreements show that $6 trillion of US equities or $20,000 per man, woman and child is counterfeit.
Re: It's The End Of The World As We Know It By Chestnuts roasting on an open fire! on 11/24/2006 5:06 AM
Watch today and see the naked shorters get roasted alive. Everyone is welcome to watch.
Re: It's The End Of The World As We Know It By By Chestnuts roasting on an open fire! on 11/24/2006 5:13 AM
Enforcement I'm sure is watching the daily FRAUD by the naked shorters. You can come and watch also.
Re: It's The End Of The World As We Know It By "wELCOME TO THE MACHINE" P. FLOYD on 11/24/2006 7:37 AM
IT'S THE NERVOUS SYSTEM.
I KNOW, I EXPERIENCED IT.
Momma's chemo failed.
Lost Moorings By Roundclock on 11/24/2006 7:43 AM
It's clear to me that the structure of the equity markets evolved largely based on considerations that had nothing to do with investor protection, market transparency and accountability. Moreover, issuers have been totally taken out of the picture.
I just don't see why a system of introducing brokers, markets and transfer agents wouldn't work just fine. What is the demonstrated purpose of the DTCC? How does it benefit shareholders?
The DTCC should be legislated out of existence because it is a mechanism by which fraud is facilitated....and because it has lied repeatedly to the public.
Re: It's The End Of The World As We Know It By old woman, feeble NOT yet on 11/24/2006 8:14 AM
feeble, weak old men behind the curtain
Re: It's The End Of The World As We Know It By SCAM-BLED EGGS, what up? on 11/24/2006 9:00 AM
Peter and Lisa Dawson, operating out of an office in Uniondale, L.I., allegedly defrauded retirees out of a minimum of $1.5 million, according to the claim.
In all likelihood, said the plaintiffs' lawyer, Jacob Zamansky, "the real amount [of losses] is between $20 million and $50 million."
Victims of the fraud were so financially devastated that their civil lawsuit case has escalated into a major criminal probe involving prosecutors from the office of Nassau County District Attorney Kathleen Rice, with possible arrests forthcoming, sources said.
Re: It's The End Of The World As We Know It By sealman29 on 11/24/2006 9:30 AM
EXCELLENTOMUNDO post EB!. Scary shit too!
I am a retired ex VN era SOG guy-and I still remember how to fight hard and dirty. One thing is certain, I won't go down without a fight-a bloody slaughter of the criminals stealing mine and my neightbors retirement.
Looking forward to learning more and participating with vengence.
One note of caution, I think some folks will need to see confirmation that the SIA numbers are factual.
Re: It's The End Of The World As We Know It By bobo on 11/24/2006 9:43 AM
Sealman: The numbers come from the SIA site. How much more factual do they need? Look at the URL.
Re: It's The End Of The World As We Know It By sgaah on 11/24/2006 9:49 AM
I originally found the data here:
I'm surpised they haven't taken it down yet. I spent a couple hours last weekend downloading every file they had on the site in case they started password protecting.
It's time for the bad guys to stop calling us conspiracy theorists and start worrying about their own liability for perjury and obstruction of justice.
Facts are facts are facts.
Just like the $1.7 billion that the x-chairman of the SEC, Donaldson had at his brokerage before he got his cushy new job.
No wonder he didn't want to help out global links and no wonder he resigned when grilled.
Re: It's The End Of The World As We Know It By NEXT on 11/24/2006 9:51 AM
Owners lose their homes to `rescuers'
Foreclosure scams grab titles, equity
By Lingling Wei
Dow Jones Newswires
Published November 24, 2006
NEW YORK -- Having tried for months to refinance their home and take it out of foreclosure, Alejandro and Martha Balderas thought they had finally found their white knight: a mortgage and real estate investment company that offers "foreclosure rescue services."
The company, Platinum Investment Group, promised the Chicago couple a loan against their house so that they could pay off their mortgage and stay in their home.
Re: It's The End Of The World As We Know It By Sean on 11/24/2006 10:12 AM
If you can't corrupt them or beat them buy them!!!
Hedge funds ready to wrestle LSE to negotiating table
Marketwatch - November 24, 2006 9:53 AM ET
Symbol Last Chg
C Trade 50.39 -0.38
GS Trade 202.40 +0.11
MS Trade 79.02 -0.18
NDAQ Trade 40.70 -0.13
NYX Trade 108.76 -0.20
Quotes delayed at least 15 minutes
LONDON (MarketWatch) -- With its latest bid for the London Stock Exchange dismissed out of hand, Nasdaq Stock Market is hoping hedge funds and other investors will be able to succeed where it has failed, and drag the LSE's management to the bargaining table.
U.S. corporate raider Samuel Heyman revealed this week that he has built an 8.8% stake in the LSE to become its second-biggest shareholder. And several hedge funds have continued to snap up shares above the latest offer price, indicating they see an improved offer as likely.
Under the terms of Nasdaq's (NDAQ) unusual "final" offer, the price can only be raised if a rival bid is launched -- which analysts consider unlikely -- or if the LSE agrees to recommend a higher offer to its shareholders.
But with the U.K. exchange's CEO, Clara Furse, refusing to even meet with her opposite number, Bob Greifeld, investors will have to take it on themselves to apply the pressure and thrash out a deal.
"Nasdaq's new approach is clearly to appeal directly to LSE's shareholders with a tender offer that it hopes will garner enough interest to bring LSE's board to the table," Said Niamh Alexander, an analyst at CIBC World Markets.
A deal to buy the LSE would create the world's biggest exchange group by number of listings, comprising 6,400 listed companies with a total market capitalization of $11.8 trillion.
The LSE's investors will be hoping to bridge the gap between Nasdaq's offer and the level the exchange itself is seeking, agreed Andrew Mitchell, an analyst at Fox-Pitt Kelton in London.
While the LSE hasn't named its price, its dismissal of the latest bid -- priced at 1,243 pence a share -- as "substantially" undervaluing the company suggests the gap is still significant.
Shares in the LSE were trading at 1,320 pence on Friday.
"Hedge funds are looking for the opportunity to squeeze up the bid," said Fox-Pitt Kelton's Mitchell.
But they will probably be content to deal at a lower price than the LSE's holding out for. "Recent investors would be happy to take a moderate return on such a short-term investment," he added.
Mitchell said that, making "very aggressive assumptions" on volume growth, the LSE could be worth around 1,440 pence a share, with a deal potentially producing cost savings of around a further 200 pence a share.
But a deal at that price would make very little sense for the U.S. exchange. It would involve plenty of risk if trading volumes slowed, while leaving little upside for its own shareholders.
"That would leave nothing for Nasdaq," said Mitchell.
James Hamilton, an analyst at Numis Securities in London, said he believes the existing bid is very fully valued and Nasdaq will not want to raise its offer by much, especially given the recent announcement by seven investment banks that they are developing a trading platform to compete with the U.K. exchange.
The banks, which include Citigroup (C), Goldman Sachs (GS), and Morgan Stanley (MS), are planning the new platform after becoming frustrated that trading fees have not been cut, despite a surge in volume.
Competition heating up
That announcement has also come as Euronext prepares to tie the knot with NYSE Group (NYX) and while Deutsche Boerse and Borsa Italiana continue to cast around for partners, pushing valuations to their limits.
"It wouldn't be inappropriate to describe the market as in a state of euphoria regarding exchanges," said Hamilton.
"It's a difficult position for Nasdaq, given how the price has moved against them," he added. "But if they're offered it on a silver platter at 15 pounds I think they'd be mad to say yes."
In the end, if investors want to deal and can agree a price, then they should be able to press the LSE into accepting, analysts agreed.
Still, if Nasdaq decides it would rather walk away than overpay for the LSE, there's little to get in the way. "Ultimately the business is owned by the shareholders -- if they decide to sell, then management can do nothing about it," said Hamilton.
Nasdaq, which already owns over 28% of the LSE, is initially expected to require acceptance of 90% for its offer to become unconditional. But Alexander, at CIBC World Markets, said it could lower this threshold depending on the level of acceptance it sees.
"We expect Nasdaq will have an initial closing period of the first 21 days after which we should get a sense of how many shareholders will tender their shares," said Alexander in a note to clients.
"This will likely be the crucial juncture that would determine whether enough shares are tendered to bring LSE's board to the table."
"If Nasdaq fails to garner another 20% of shares in the tender offer, we expect it will withdraw and focus its attention on other international regions or perhaps other products in the U.S.," Alexander said.
If it did withdraw, Nasdaq would be banned from making any further bid for at least a year.
The U.S. exchange, however, would be loathe to sell out its substantial stake at a loss, meaning any alternative bidder would still have to pay a high price for control.
With increased competition from a combined NYSE-Euronext and potentially from the investment banks themselves, the LSE has done well to fend off lower offers and paint itself as such as attractive target.
But it must now brace for some intense pressure to pull up a chair and have a chat.
Re: It's The End Of The World As We Know It By davidn on 11/24/2006 10:20 AM
It's pretty hard to argue with facts.
It was good to see the front page headlines in the NY press this morning that it turns out that Bobo's conspiracy theories are conspiracy fact.
Funny there is a media blackout on how thieves have stolen so much money that they've corrupted our democracy.
By the way, where is the new SHO rule? It's been about five months. What do the SEC commissioners do all day?
As bad as the new fail data is, the repo data is much, much worse. $6 trillion out of $31 trillion at Cede & Co.
Take every share that is at a brokerage and add it up. It comes to $31 trillion. The international repos (which creates phatom longs) are 20% of that.
Re: It's The End Of The World As We Know It By Jeremiah 9:24 on 11/24/2006 10:21 AM
Hey I for one am ready to sign on. How much is needed? Any way to make it a non-profit? Let's tax deduct this puppy. I find that pleasantly ironic.
Re: It's The End Of The World As We Know It By pay the fine, shut up, I am busy on 11/24/2006 11:09 AM
Prosecutors said Friday they are prepared to drop charges against Germany's most prominent banker and others over a 2000 takeover battle in return for a fine of €5.8 million.
Deutsche Bank's chief executive, Josef Ackermann, is on trial over disputed bonuses paid to executives at German phone company Mannesmann when it was acquired by Vodafone Group.
Ackermann, who sat on Mannesmann's board at the time, and five co-defendants deny that they illegally engineered payments worth nearly €60 million, or $78 million.
Re: It's The End Of The World As We Know It By n-tres-ted on 11/24/2006 11:33 AM
I must admit that Q2 spreadsheet contains quite a few mysteries for me. Let me mention some of them, and perhaps you and/or others can shed some light on the subjects.
First, the statement appears to consolidate the financial positions of all member firms of the NYSE, based on the statement at the top "total firms" then the income statement and balance sheet. Also, line 150 says 213 firms included.
On that basis, the income statement shows $78.6 billion in revenues for Q2, of which $48 billion is classed as "other." Not very helpful, I'd say. On the expense side, $41 billion is called interest, with no breakdown to tell us for what. Net after tax income for Q2 is $3.745 billion.
The balance sheet shows total net capital of $78.4 billion (call it "skin in the game"), while total liabilities are $4,476 billion, a leverage ratio of 57 to 1. Yet the leverage ratio is stated to be 15.2 (line 148). I don't find any other set of numbers that yields that ratio. Can someone enlighten me?
Securities borrowed (line 126) shows zero liability. None of these 213 firms has borrowed any securities?Line 114 shows "securities sold short" of $442.5 billion. How can this be? They trade for their own accounts, they sell short, and they make markets to provide "liquidity." This doesn't involve borrowing securities? Surely the $442.5 billion isn't entirely naked shorting permitted by the market making exception , is it? How about the securities they take out of their clients' margin accounts? They just pass that liability along to whomever borrows the shares untimately, and they (the brokerages) have no liability for it? Sages of the industry have said the "entitlements" are claims against the brokerages just like derivatives, and the brokerages are good for it. Yet they don't acknowledge any liability for the securities borrowed?!
How much would the liability be for "borrowed securities" if the brokerages acknowledged it? Their exposure would be "excess of loss" in case the short seller who borrowed the shares winds up failing to pay the costs of covering and redelivering the shares, would it not? Enough to wipe out net capital, and more?
They owe $1,880 billion on repo agreements, which is an obligation to buy securities at a stated price, right? They show another $1,000 billion owed to "brokers, dealers, clearing organizations," which includes $896 billion owed for "securities loaned." How is it they "owe" for securities loaned? If these firms have loaned securities, they would be owed money, not owing it. So these must be the shares taken from their clients margin accounts, and loaned to others, right? But this item should relate to line 70 showing an asset of $1,865 billion consisting of "receivables: securities borrowed." How can it be that these firms are almost $1 trillion to the good on the basis of securities loaned or borrowed?
At this point, I'm just going to post what I have and ponder further while perhaps some of you can enlighten me. Thanks for your thoughts. And Bobo, again, thanks for your vigilance and analysis.
Re: It's The End Of The World As We Know It By wiki on 11/24/2006 11:35 AM
The DTCC is not the only baddy. They have baddies in Europe, too and they counterfeit into our market.
Following the publication of Révélation$ (2001) by investigative reporter Denis Robert and ex-Clearstream banker Ernest Backes, Clearstream was accused of being an international platform for money laundering and tax evasion via an illegal system of secret accounts. This became known as the "Clearstream Affair."
However, in Spring 2004, a "Second Clearstream Affair" began, which exploded in 2006. This Second Affair, peripheral to the primary Clearstream Affair, accused several French political figures, industrial leaders, and members of the secret services of maintaining secret accounts at Clearstream, which allegedly were used to transfer the kickbacks in the French-Taiwan frigates scandal.
Business Week said, in 2001, "Earlier this year, Clearstream, which handles the back-office paperwork for some 40% of European stock and bond trades, was found to have overstated its assets in custody by $1.5 trillion.
These guys own the German exchanges that list companies against their permission in Germany to take advantage of arbitrage loopholes.
Re: It's The End Of The World As We Know It By Niel Storts on 11/24/2006 12:17 PM
Well "Bob", glad to see you are getting closer to the realization that this will take direct action. Call me when there is some down and dirty fighting in the works. I would enjoy the opportunity sooooo very much.
Re: It's The End Of The World As We Know It By fell off high horse on 11/24/2006 1:12 PM
Quest Software Inc. 's senior vice president of corporate development has resigned amid an internal investigation of the company's past stock-option grants.
M. Brinkley Morse's resigned after refusing to interview for the special committee investigating the options
Re: It's The End Of The World As We Know It By piddly_sum on 11/24/2006 2:31 PM
Specter Bill Would Force Hedge Fund Registration (Update1)
By Jesse Westbrook and Otis Bilodeau
Nov. 22 (Bloomberg) -- U.S. Senate Judiciary Committee Chairman Arlen Specter is circulating draft legislation, designed to prevent illegal insider trading, that would require hedge funds that accept pension fund money to register with federal regulators.
Re: It's The End Of The World As We Know It By Chestnuts roasting on an open fire! on 11/24/2006 2:54 PM
Roasted chestnuts anyone? JAGHE up .11 at 42.
Re: It's The End Of The World As We Know It By hwh on 11/24/2006 3:36 PM
The FED's goal has been to lower LT % rates in order to refinance the fed debt at LOW LT rates. This kind of crush to the economy would hasten their ability to meet their target. However, as bad as this would effect the system,( and the many cities, county's, and states that would be placed in default(bankruptcy)) by the meltdown, our nation's credit rating would be in jeopardy and have a rverse effect on the rates.
The FED is hoping to sell 30, 50, & 70 year bonds in the 2-4% range. Going to be tough to take that scenario. Maybe just do an "Orange County, CA" style bk on the national level and be done with it.
Sorry for the scarcasm, but while the FED's intentions are good, their methodology has been atrocious. Letting us hang out to dry, financially, in order to put a lid on the unquantifiable gains of a massive bull market,see wealth effect, and the [rosperity associated with said market is unconstitutional.
I argue it is not liquidity the FED has been maintaining, but a herring/distraction from the true goal. In its' persuit it has alowed most every securities , banking, and welfare law written to be maliciously violated.
Former SEC Ch Donaldson alluded to thiis diretly but not in total scope with his querry of Greenspan as to "how much fraud are you willing to accept..." speach.
We now have the LT Capital inequity., about to add Refco's, and soon more than we can afford to bail out.
Where does it go from here?? hwh
Re: It's The End Of The World As We Know It By Selene on 11/24/2006 7:19 PM
Why didn't you tell us you were a little devil of an accountant... ;-)
Re: It's The End Of The World As We Know It By Selene on 11/24/2006 8:08 PM
I don't know anything about accounting for this industry, but you are right, it doesn't make sense.
They sum capital at 204 billion when the balance sheet shows 4.5 trillion. They tell you that total net capital is 78 billion when the balance sheet shows 108.6 billion (97.2 equity + 11.3 partner + 4.6 Sole). ** aside: something of interest is the additional paid in cap of 68 billion as compared to R/E of only 27 billion, but that is another story altogether...**
I guess the question should be what leverage ratio are they using? It doesn't specify. It only says leverage ratio so we don't know if they mean LT Debt to equity or Total Debt to Equity... My guess is that some of the liabilities are left out to calculate their answer of 15 times otherwise you would get 41 times equity if you compare total liabilities to total equity (clearly some of the payables are being left out on the numerator)..
Re: It's The End Of The World As We Know It By Selene on 11/24/2006 8:28 PM
Also, my guess is that the "other revenue" line item on the income statement has something to do with the receivables: securities borrowed line item in the balance sheet (asset side). However, the offset in the liabilities section doesn't make sense. With have an asset of 1.8 trillion and a liability (securities loaned) of 900 billion approx. Why? Is this the true fails to deliver? Is it as bob says, about a trillion dollars of fails or better yet a trillion dollars of stock the broker pretends to lend, but doesn't actually lend but instead pushing an IOU into the market???
Re: It's The End Of The World As We Know It By Selene on 11/24/2006 8:38 PM
I'm not sure I follow your analaysis of the fail to deliver asset (a receivable) vs. the failed to receive liability (a payable). I suspect the two should offset giving us around 7 or 8 billion. Ones an asset (receivable) owed to the broker and the other is a liability that the broker owes... I think the focus should be on the securities borrowed versus the securities loaned...
Re: It's The End Of The World As We Know It By Selene on 11/24/2006 8:50 PM
For example: You have repos on the asset side: "reverse repos" equal to about 1 trillion. also on the asset side you have receivables of 1.9 trillion added together you get 2.9 to 3 trillion. On the liability side you have repos of 1.879 trillion and payables of 1 trillion and again added to about 2.9 trillion.
What I'm suggesting is that the reverse repos on the asset side corrispond to the securities loaned on the liability side, and the repos on the liability side correspond to the securities borrowed on the asset side. They are mirrors of each other. In the end, the brokers borrowed 900 billion of securities and loaned out 1.9 trillion of securities. They are short a trillion on the borrow...
Re: It's The End Of The World As We Know It By mysterious on 11/24/2006 9:01 PM
Counterterrorism police investigating the mysterious death of a Russian spy-turned-dissident warned Friday of a potential public health hazard at two hospitals that treated him and three other locations where officials found traces of the radioactive material thought to have killed him.
Contamination could result from direct contact with the dead man's bodily fluids, authorities said, or by ingesting Polonium 210, inhaling it or taking it into the body through an open wound. Investigators suspect that the 43-year-old was poisoned on Nov. 1, when he had meetings in central London at a sushi restaurant and a luxury hotel. Traces of the radioactive material have been found at both locations, as well as his home in north London.
Re: It's The End Of The World As We Know It By bobo on 11/24/2006 9:53 PM
Selene: No, I think you have to look at any offsetting hypothesis this way: A failure to deliver is a failure to deliver. The seller didn't deliver the stock he sold.
A failure to receive is the failure of a broker to get the stock he bought.
First comes the failure to deliver. On the other side of that is the failure to receive. They are not linked in any way to specific trades. At the end of the quarter, say, 50 billion in stock wasn't received by those who paid for it, and $30 billion of stock was never delivered to the NSCC to make good on the sell transactions. Remember that the NSCC intermediates almost all trades - the failing to receive is caused by the NSCC simply stiffing the buying brokers, for whatever reason. But stiffing the buying broker doesn't offset the other side of the trade, where the NSCC was stiffed by a seller who didn't deliver. They are different parts, not plusses and minuses.
Why are the numbers different? Well, start with the stock borrow program. Every day, we are led to believe that the SBP delivers about a billion dollars worth of stock to the buying brokers, eliminating a billion dollars a day worth of failure to receives, but leaving the failure to deliver intac - the only thing that can clear a failure to deliver is the delivery of the stock by the seller. Thus over any quarter one could reasonably expect receives to be different than delivers - and timing would also cause a smaller variance each snapshot. Also, desked trades likely skew the numbers a bit.
But what I do know is that $30 billion of delivery failures is $30 billion, not $6. Regardless of how FTRs play, first comes the failure to deliver.
I do agree that the stock lending and repo stuff is where most of the real ugliness lurks.
Perhaps it would be worth spending some time with the 10K of the public exchanges to see how they account for it in their numbers?
I think one of my very first blogs, many moons ago, was sounding the alarm about how the publicly traded brokers had to be up to shenanigans to NOT account for their fails and liabilities honestly. Seems that too was prescient.
This tells me several things. First, that any expectation that you are going to get the truth from Wall Street or the SEC is idiocy. You won't. They lie. Constantly. Second, that what they have been decrying as conspiracy lunacy in fact is a pretty solid description of an orchestrated scheme they have been using to loot the US economy using the market system. Simple, really. First, get control over clearing and settling - own it so you can do what you like. Second, get the SEC to go along with the idea that the industry's imperative for speed and liquidity should outweigh the investor's right to protection. Third, eliminate any mechanism for shareholders to prove they own the asset they paid for. That is key. Brokers sell tangible assets and collect a commission. When they stop selling the assets, but imbue the chits they create with the same characteristics (or lie to their clients about whether they ever got the asset they paid for) they are plain and simple commiting fraud, for the express purpose of stealing money they were paid for a good, and which money they pocketed, leaving a chit instead of the good. It is really all that simple at the end of the day. The whole thing is predicated on no feedback loop for investors to check to know whether or not they were lied to, and the assurance that most are too lazy to grasp the size of the con. That, and the complacency of the cops. That's essential.
They have created a theft mechanism, and convinced everyone that they, the thieves, are too important to fail, or to be held accountable for their thievery. That is lunacy. Again, imagine that $50 billion went missing from your bank every year, into the pockets of the owners and the top brass of the banking system. Would anyone try to argue that is OK, or should be allowed to continue, or go unpunished?
So then why when some wannabe bankers do the precise same thing, using stock as their instrument of theft, should we treat it differently?
It couldn't be simpler. You work your life, save money, pay it to your broker, and buy stocks. He takes your money, tells you he bought stock, and then doesn't. He then pockets your money, pays it to himself in one manner or another, and tells you that you shouldn't be concerned that he never bought the asset you paid for.
It is fraud and theft. Nothing more. Elaborately executed, but the basic act is as old as time itself.
And now the numbers are available for one and all to consider. That many of the numbers appear to be nonsensical also doesn't surprise me. Why not? What penalty is there for providing gibberish? Who is going to do anything?
Imagine if you could write whatever you felt like on your tax return every year, even contradictory numbers, and nobody would ever do anything. What likelihood is there that most would wind up owing any taxes?
This is sort of like that, methinks. They own the system - who is going to make them do anything?
Re: It's The End Of The World As We Know It By anthony kalantzis on 11/24/2006 11:14 PM
By makemoney on 9/21/2006 12:01 AM
I think the easiest way to fix this is to beat them at their own game:
1. Set up the NCAANS fund.
2. NCAANS Fund find stocks at .0001 to act as a shell / dividend magnifier. Don't roll the shell back.
3. Merge that stock with a great dividend producing private company.
4. Pay dividends. For every zillion shares the systems f'ckd the .0001 company, they have to match the dividend.
If they are short 10 times the float, the system amplifies the benefit by 10 times. What if we merge a great company with a piece of sh't naked shorted 10's of thousands of times?
A million dollar dividend could cost them $10 billion.
Rinse and repeat!
This is way faster than lawyers - the counterfeiters have to match counterfeits 1 to 1.
We could have thousands of counterfeit hedge funds amplifying our dividend payments in a couple months as the SECDTCCCORRUPTMEDIA beast screams there is no problem.
It almost becomes a race - how much money can we make using the corrupt SEC system to magnify dividends before they come up with a rule to stop us?
making money ..can you explain this method better to me ? matching the dividend ?
Re: It's The End Of The World As We Know It By Selene on 11/24/2006 11:33 PM
Okay. My real question was this: We are looking at a balance sheet for member firms for the NYSE. I'm assuming that some method of couples comes into play. That is, if it is a consolidated balance sheet (which it is), then one firms asset may be another firms liability. Does this coupling effect cause the balance sheet to be distorted?
Is there some way to cancel out the couples to see what we are left with? Again, I'm making the assumption that some of the liabilities we see for member firms are also assets of other member firms and if we were able to cancel all these out then and only then would we get a balance sheet that made any sense (one that would show the true financial position of the member firms that is the" real" assets).
Clearly this is over my head, but I would suggest NCANS or someone gets an accountant who specializes in this area to interpret what the balance sheet means... I'm just a finance student who only understands simple plain vanilla accounting, but I was interested in Ntrested's attempt to try and reconcile what was going on in the accounting. Hopefully someone can shed some more light...
Re: It's The End Of The World As We Know It By Golden Bollox on 11/25/2006 12:13 AM
Have any ideas or suggestions to combat NSS or if you just want to spout off, visit my board.
Re: It's The End Of The World As We Know It By InTheKnow on 11/25/2006 2:52 AM
Look at it this way:
Your bank account has $100,000.00 in it. You buy something for $10,000.00 using your debit card. This is a special debit card that credits the other guy with an IOU but he doesn't know that and it looks like he got the money. However your account still has the $100,000.00 dollars. Nice isn't it. That is exactly what is going on here, except that instead of accumulating goods the scumbag naked shorters are accumulating money!
Re: It's The End Of The World As We Know It By Sean on 11/25/2006 7:34 AM
Look like someones had enough and is not gonna take it anymore!
To the SEC,
I have written you several times in the past concerning illegal naked shorting, each and every time keeping my composure and tact in spite of my growing frustration. After years of your lies and continued criminal conduct, I have run out of tact so you will have to bear with the reality of my mind set which further echos the mind set of the thousands of people I have encountered who see you as the criminals you truly are.
I should begin by saying shame on you for permitting the people of this nation to be robbed blind by the crooked market makers, brokerage houses, terrorists, the mob, drug lords and all the other criminals who have looted and destroyed this economy with illegal naked shorting.
When the tally is done, it will be clear that on your inept and corrupt watch, your complicity helped destroy America, or at a minimum, made it a 3rd rate power while empowering criminals for decades to leach out of our economy tens of trillions of dollars in ill-gotten wealth. I wonder how many elderly people who lost their retirement due to your permissive attitude towards illegal naked shorting and were forced to eat dog food or maybe even froze to death because they could not afford heat. How many parents could not afford to send their children to college because of you? How many lost their dream of home ownership? I can only imagine the degree of economic hardship your ineptitude and corruption cause to millions of your fellow countrymen.
Now, because of your decades of ineptitude and corruption, giving the criminals on wall street and beyond a free pass so you can line your pockets with future high paying job opportunities and/or taking bribes and/or living the pretense of feigned ignorance, know that the problem probably can not be corrected without bankrupting America. You have created a downward spiraling of our economy that will soon catch up with us, especially since you have now formally legitimized illegal naked shorting with these scam "repo agreements." What the hell do you think is eventually going to happen with these scam repo agreements? All it will lead to is legitimizing the existing massive naked short problem and encourage more illegal naked shorting to continue in the future, more devastation of legitimate businesses, more stealing from innocent shareholders and the continued draining of massive wealth out of America by every filthy criminal element on earth. How does it feel to know that by your ineptitude and corruption, you have helped the insurgents purchase weapons to kill our own soldiers? How about the fact you even helped fund the destruction and murder that occurred on 9-11? Does any of this ring a bell or even bother you in the slightest? Obviously it does not bother you at all because by creating "repo agreements" and not forcefully cleaning up the mess you made, you are encouraging more of the same illegalities to continue. Hence, you get a snapshot of just a very small portion of the damage your incompetence and arrogance has caused. Perhaps the question in this matter should be presented such to determine if you even have souls. Clearly, you are America-haters and haters of Americans because all you have done for a few dollars is help destroy the greatest nation on earth.
How about your own illegal manipulation of securities by the SEC itself by your repeated scam administrative halts and investigations on heavily shorted stocks that usually lead to nothing, with the exception of huge price-per-share reductions? When publically announced, these stock prices of target naked shorted stocks drop into infinitesimal levels, a planned charade so your criminal cronies can cover their illegal naked shorts at low prices and avoid a short squeeze. Don't you think we tire of this ongoing charade? Don't you think you are just a little too obvious? If you fail to understand that we see this repeated scam on your part, then you have your heads so deeply buried in the wrong place that you can not see the blue sky of day. Again, may the shame of all time be on your heads for what you have done and are still doing to both America and your fellow Americans. All of you applicable criminals in the SEC should be tried for treason and executed for selling out your nation... yes executed. What you have done is by far worse than the Rosenbergs did with our nuclear secrets in the late 40's. However, instead of justice, you will keep your extended welfare positions at the SEC just long enough to do a few well-placed favors so as to get a cushy $500,000 per year job at your favorite brokerage firm or market maker as one of their in-house counsel. Well, from one American to another, congratulations on your honorable and well-earned achievements.
So, should I expect an audit on my taxes now? How about a full review of my trading records and some trumped-up charges for merely telling the truth? Who knows, maybe even a bullet in my head. Nothing coming from the securities branch of your organized crime family known as the SEC would surprise my anymore.
My greatest hope is that justice comes for you in its' severest form.
Allan F. Treffry, Esq.
cc: The DOJ, Each Member of the Senate Oversight Committee, Each Member of the Senate Banking Committee, President Bush, California Governor Arnold Schwarzzeneger, Anyone Else I so Deem Applicable.
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*** Shop Overstock.com *** By Not a Shareholder on 11/25/2006 8:02 AM
This holiday we can send our special thanks to Patrick Byrne for all the help he has given to our cause.
I am not an Overstock shareholder.
Re: It's The End Of The World As We Know It By bobo on 11/25/2006 9:25 AM
I would welcome any accounting types to further clarify the spreadsheet for us. The point is that we cannot assume that the failures to receive stock, on the one side, somehow "cancel out" the original failures to deliver. They don't. That is like saying that if I sell a car to my friend, and then take his money, but don't deliver the car, that his suit against me for defrauding him cancels out my original failure to give him the car.
I agree about shopping OSTK by the way. Support those that have done your fighting for you.
On that same topic, I note that the CA court is about to rule on the bogus free speech stalling gambit they've used to delay justice for over a year. That's kind of funny. Even funnier is how the Post characterizes it as OSTK trying to keep their lawsuit alive, versus the appelate court preparing to rule on Gradient/Rocker's losing the original ruling and appealing it to stall discovery.
Very amusing to see them take a case where the judge ruled for OSTK and against Rocker/Gradient, and try to make it sound as though OSTK was desperately trying to keep a lost cause alive. No agendas or spin there...
Re: It's The End Of The World As We Know It By PhantomCertificates on 11/25/2006 9:27 AM
Patrick Byrne was on Bloomberg Friday. The initial part of the video is about Christmas trends and Overstock.com, but at about the 3:20 minute mark he went into the Rocker case, excess voting, and fake shares.
Re: It's The End Of The World As We Know It By kevin on 11/25/2006 9:43 AM
The fails to receive are a different amount than the fails to deliver. That alone tells you they don't cancel out.
With the repos, loans, fails, internal netting, etc., we are still only dealing with the tip of the iceberg. I won't be surprised to see another spreadsheet at some point in the future with bigger numbers.
What brought it to reality for me was to see that international repos in the US equity market were $6 billion and all the shares at Cede only total $31 trillion.
They think they are "stock bankers" and that our assets are their fiat currency. They are wrong and if they committed crimes (wire fraud, obstruction of justice), they will go to jail.
Protect yourself. Pull your own asset in the form of share certificate and tell them if they want to sell it, repo it, lend it, etc. they are going to have to cut you in on the action.