But who’s being technical these days?

Once committed, Americans have little choice over their own Treasury budget with scam artists at the helm.

The quote from your article below commits a classic method of misleading people. If subprime lending went up 100%, 200%, or whatever then your percentage based analysis doesn’t hold up. No offense, but please try to avoid shady tactics and incomplete analysis on a site dedicated to defeating shady tactics and incomplete analysis.

Hopefully this is just an editing error rather that naked manipulation to prove the point (which probably isn’t correct).

“At the time that the mortgage securities markets began to go south in 2007, defaults on subprime loans had increased only slightly month-to-month, and were in fact considerably lower than in earlier years. In the second quarter of 2007, for example, only 7.7 percent of subprime loans were 30 days past due, slightly up from 6.76 percent in the second quarter of 2006, but considerably lower than the 9.9 percent in the second quarter of 2001.”

We seem to be losing voices over time…

Suddenly the massive wave of foreclosures? Never happened. No Doc loans? That never happened either. Option ARMs? Nope never written. The tin foil hat guys will go through anything to tell you that anyone who shorts securities, or more specifically the securities they are hawking is responsible for everything from H1N1 to Ala Brown’s array of unwanted suitors.

CDOs can’t be sold at par to investors, unless the bond insurers, and the bond raters rate them as AAA credits. John Paulson can talk to all of the investment banks that he wants, but without these players there’s no market for the CDOs.

Its unreal that people actually believe this baloney.

Target: Hedge Funds

As prosecutors broaden their crackdown in the Galleon insider- trading case, hedge funds face a moment like investment banks did when Boesky and Milken went down two decades ago.

By David Scheer and Joshua Gallu
Bloomberg Markets, February 2010

Days after he was arrested in an insider-trading probe in 1986, investment banker Dennis Levine sequestered himself at his lawyer’s New York office to read the government’s evidence. As he finished, he gazed out a window some 30 floors up, silently urging himself to open it and jump. He didn’t.

Instead, as recounted in his 1991 memoir, Levine came clean. He turned on his co-conspirators and cooperated with prosecutors, helping them build their case against arbitrager Ivan Boesky, who in turn led them to junk bond pioneer Michael Milken.

The episode brought down Levine’s former employer, Drexel Burnham Lambert, and spawned new rules that changed the entire investment-banking industry.

This time, the insider-trading allegations involve hedge funds, Bloomberg Markets reports in its February 2010 issue. Since federal agents in October arrested billionaire Raj Rajaratnam, co-founder of Galleon Group LLC, they’ve swept up about 20 alleged co-conspirators. And they’ve set in motion a chain of events like those Levine was a part of, securities lawyers say. Some of the people involved so far will give up more traders and tipsters to help prosecutors expand their case — and help themselves avoid harsh punishments.

read the rest here

http://www.bloomberg.com/news/marketsmag/mm_0210_story5.html

Kaufman & Forbes: Perp walks for NSS’ers

Good interview. Excerpt:

Forbes: Now, has the SEC caught up on the technology that makes it very difficult to prevent naked short selling?

Kaufman: Well, I think that’s part of their problem, is how, but there are ways to do it that, you know, I’m not talking about, oh, naked. By the way, there’s a way to deal with naked short-selling that and that is–

Forbes: Perp walk.

Kaufman: DTCC, now yeah, perp walk. I hadn’t thought of that one. Yeah, no, that always works. That’s very salutary, and one of my favorite sayings is, “There’s nothing like the prospect of a hanging to concentrate the mind.” But, no, DTCC, which does all back end clearing, basically what happens now, if I want to sell 100 share of IBM, I can go to the DTCC, and I say, “Do you have 100 shares of IBM today to sell short?” And they say, “Yeah, I’ve got 100 shares.” So, I sell it short. You can come in right behind me, you get the same 100 shares. What they want to do is they want to have a hard locate. And so when I come, and I say I want to sell 100 shares of AT&T, they put a flag on the 100 shares. And when I went to my broker to do the short sale, I’d have to have, you know, them communicate that they’ve got the shares. So there’s only 100 shares, I sell it.

Person comes behind me says, “Do you have 100 shares?” say, “No, that’s gone. That’s being held for Kaufman’s sale.” It’s a real simple system, it could do a load of good in terms of dealing with this thing. A lot of people just don’t want to do away, I mean, there’s a, there’s two things going on. One is, lots of people making a lot of money, which always ties into it. The second, the people who are the victims don’t want to admit they’re the victims. They don’t want to, as I said, as the top number two guy in of our major financial institutions say to me, he was in the office just to talk about some other things. I’m leaving, he says, “Great job you’re doing on short selling.” And I said, “Great, why don’t you say something about it?” He said, “Well, I don’t, you know, they’ll come and get me.”

So, while this is, nobody wants to kind of take on the short sales, because they don’t want to be the victim that the short sellers go after. It’s a little like the same thing goes on, you know, in the ghetto, with the no-snitch shirts. It’s, like, nobody wants to be a snitch, nobody wants to turn them in, because then, it may cause me a problem. So that’s one of the reasons why, I think, they’re moving so slowly. And lots of people there will defend–

Forbes: Why does the SEC have a bias toward short-sellers? Have they–

Kaufman: Oh, I don’t think they have a bias, I think they’re just nervous about moving because when they call a meeting together, most the people that come say short-selling’s great. And they’re the people that are benefiting, many times, benefiting from short sales. There are also academics who think it’s a good idea, but it is clearly a very, very dangerous situation to have.

http://www.forbes.com/2010/01/27/kaufman-sponsored-access-intelligent-investing-sec.html

iznourbaby
Member

Join Date: Jan 2008
Posts: 42

Default John Paulson
Most people know that Alan Greenspan was instrumental in creating the housing bubble that is collapsing now. Paulson made $3.7 billion in 2007 betting on the collapse. Do the math–

$3,700,000,000 per year is

$10,135,986.30 per day

$422,374.43 per hour

$7,039.57 per minute

$117.32 per second

Mr. Paulson made $117.32 for every second that ticked by in 2007, 24 hours/day, 7 days/week. When Greenspan retired from the fed Paulson hired him as a consultant.
http://www.telegraph.co.uk/money/mai…nhedges117.xml

In other news, violent riots have broken out all over the world because tens of thousands of people can no longer afford food.
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