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If Taibbi really wants to expose things, why has he not consulted with Stathis or any other expert who has been exposing the fraud (although I think Stathis is the only one I have seen). Think about that and then you will understand Taibbi’s motives.

Why hasn’t anyone from the media even discussed Stathis’ SEC complaint about Washington Mutual???

http://www.avaresearch.com/article_details-404.html

Stathis reported just days after the Bank of America Merrill Lynch deal that it was set up by the Federal Reserve and Treasury, while no one else had a clue.

http://www.avaresearch.com/article_details-86.html

To this day, no one from the media has come to him to ask him anything even though he clear has the leading insights on this economic meltdown.

http://www.avaresearch.com/article_details-341.html

http://www.avaresearch.com/article_details-336.html

Matts example will draw critisism because its fundamentally incorrect.

Currency debasement and Equity debasement are certainly both ‘watering down’ processes through counterfeit.
Except that currency debasement has an intial wonderful wealth euphoria while the streets are awash with easy credit and cash
__ its only when the fulcrum is met that hyperinflation of the debased currency is actually experienced.

Equity debasement is different insomuch as there is no initial surge of wealth felt by the participants.

The counterfeit fail to deliver /FTR, requires constant moving, maintaining, parking, re parking, re re parking, etc etc …..

An intimate look at some blotters might reveal lots of on and off balance sheet parking games

Imagine you travel to a small foreign island on vacation. Instead of going to an exchange office in your hotel to turn your dollars into Island Rubles, the country instead gives you a small printing press and makes you a deal: Print as many Island Rubles as you like, then on the way out of the country you can settle your account. So you take your printing press, print out gigantic quantities of Rubles and start buying goods and services. Before long, the cash you’ve churned out floods the market, and the currency’s value plummets. Do this long enough and you’ll crack the currency entirely; the loaf of bread that cost the equivalent of one American dollar the day you arrived now costs less than a cent.

http://www.reuters.com/article/pressRelease/idUS201121+06-Oct-2009+GNW20091006

LONDON, Oct. 6, 2009 (GLOBE NEWSWIRE) — Over the last four years the company
(Other OTC:BCIT) has made every effort for the resumption of trading of its
stock by complying with all requests made to it by all pertinent agencies. It
has done this at great expense and effort but as it has complied; it has found
its efforts to be unfairly obstructed. Even with the findings of various
government agencies showing Energy Source to be innocent of any wrong doing one
private organization continues to block the rights of the company, the
Depository Trust & Clearing Corporation (DTCC).

The DTCC its officials and lawyers lead the company to understand that on the
completion of all the normal regulatory requirements it would clear its stock
for normal trading. This position was reached by mid 2007 after an exhaustive
and costly process. The DTCC despite the company being fully filed, having
possession of an 15c211 as required by FINRA, consent from NASDAQ to trade the
DTCC refused to clear the company’s shares unless the company supplied
sufficient shares to the DTCC to cover the counterfeit shares it had allowed to
enter the market by its gross negligence as well as supporting a tide of naked
short selling by its client owners and brokers. The company out of disgust and
frustration, had stopped their corporate filings and contemplated what else they
could possibly do after spending over $800,000 to that point. The company had
complied with all requests, was accused of no wrong doings, yet was not
permitted the rights it deserves, to do business.

Energy Source would like to announce that it is, once again, becoming fully
compliant in all corporate matters. Empire Stock Transfer Inc. continues to act
as the company’s stock transfer agent, and the company will update its filings
shortly. Any and all other corporate matters found to be delinquent will be
addressed and remedied as well.

The company is resolved on behalf of its shareholders and those others who have
fallen victim to the ongoing fraud perpetrated in the marketplace to continue in
business despite the failure of regulatory agencies to protect the most basic
rights of the capital of the company, and the rights of its investors, which has
now created a climate of distrust and frustration that needs to be addressed.

The company, after talking with the main investigator of Senator Grassley’s
office, who has intervened as a moderator for all concerned, feels that it is
time to make this effort. Without the effort put forth by Senator Grassley’s
office and the determination of certain shareholders, who only ever wanted what
they paid for – their shares, the company would have had to consider other
alternatives.

It is unfortunate that a private monopoly like the Depository Trust & Clearing
Corporation and its financial institutional owners, exercises decisive influence
over such government agencies such as the SEC and can dictate policy with
impunity to the market place to the extent that the owners of a public company
are no longer in control of their own capital structure and there is no redress
for outright fraud perpetrated by brokers on the company’s shareholders. Energy
Source is most thankful for Senator Grassley’s office demonstrating integrity
and concern by stepping in and attempting to moderate in this situation where
investors have been fleeced by their brokers and the DTCC.

Additionally the company announces retaining the services of Kellogg, Huber,
Hansen, Todd, Evans & Figel, P.L.L.C. to assist it with future legal
proceedings. An independent effort by our shareholders to help with these
expenses has been initiated and the company supports and welcomes their efforts.

Thomas Megas CEO Energy Source Inc.

-0-
CONTACT: Energy Source, Inc.
Thomas Megas
tpm14@hotmail.com

However in BS we see that the largest fails were on March 20, making the very large naked short sales on March 17, 2008 The increase was about 11 million. So if the 11 million short sales were done on March 17 when the stock was trading between 3 and 4, apparent those naked short sellers did not fare too well because two weeks later the stock was 10.

And no one can claim that the naked short sales on Friday March 17, 2008 caused the stock to drop on March 14 or earlier.

In Lehman the largest naked short sales were done when the stock was below 1. and as low as 10 cents. certainly those sales did not cause the collapse from 60.00.

The question becomes what was those enormous fails related to. The answer is that they were related to naked short sale indeed.

But those naked short sales were done by options market makers using a strategy that I first created in 1983 when I was an options market maker on the CBOE, who held the largest positions and did the most volume.

That strategy was in use last year by the largest options market making firms creating “naked short sales” in BS and LEH legally through their exemption.

Tune in for more of the story.

I’m not leading or joining in any “naked short-selling” parade. Neither am I a believer in conspiracy theories. Please don’t presume that I am. I’m sorry that you consider me such a poor benighted soul in regard to finance. Maybe I am. I don’t have a degree in mathematics. I’ve never worked on Wall Street. I just worked as a teacher for more than thirty-five years. I tried to put as much money aside for my retirement as I could afford. I guess I was wrong to suppose that the financial experts–many of whom never saw the financial crisis looming on the horizon–would take care of things. That was probably my biggest mistake.

I believe there are many thousands–maybe millions–like me who were careful with our money, invested what we could, and lost quite a bit last year–a paltry bit by Wall Street standards…to be sure. Some of us out here on Main Street are trying to figure out what caused the near financial collapse of our economy. We are just looking for answers–and culprits too! Maybe some of us are reading the writings of a “magazine journalist” because he’s at least attempting to explain things to us without talking down to us or treating us like we’re too dumb to understand the complicated workings of the stock market, derivatives, etc.

I left my comment above because I think it’s interesting that some financial bloggers/journalists would rather attack the writings of Matt Taibbi than go out and do some investigative digging themselves.

Respectfully,
Elaine M.

http://www.advancedtrading.com/blog/archives/2009/10/pensons_letter_1.html?cid=nl_at_daily

Advanced Trading has a story by Kerry Masaro dated Oct 7.
covering a Business Insider story by Matt Carney.

To the distant reader that seems to be a very fast retort, is it possible that some enemy of exposing naked short selling set up Taibbi to discredit the exposure of same?

The impression I have from Deepcapture is that massive amounts of naked short shares fail even to reach failure to deliver but are dealt with by DTCC.

Taibbi’s article is nothing more than a paraphrase of my article on Bear Stearns and my interview with him. He also includes ideas from Gary Matsumoto’s article who collaborated with me and my friend Ray Wollney. The 1.7 million purchase of puts was given to Matsumoto by Ray Wollney.

Tabbi incorporates ideas promoted by Patrick Byrne of Overstock who is the charming promoter of “naked short selling” as causing the demise of BS and LEH.

How was Patrick able to get the Attorney General of California to submit an amicus curiae brief in his California litigation?

Taibbi offers nothing new and is able to bullshit a lot of followers. But he and Byrne can not bullshit a few people who know the score.

Ray Wollney and I have just decided to write a book on the real cause of the collapse of Bear Stearns and Lehman. I will keep you posted on our progress.