The real question is, if the bailout happened sooner, would BS and Lehman have likewise survived?

Your views, my views, and all others views are just that views and theories. We will never know the extent of the banking risks out there because each were protected by a bailout once Lehman went down.

Personally, I think Blankfein is a liar and he is lying to protect his reputation. Cayne went down amidst a continued plea that he was well capitalized right up until there became a run on the bank. But down he and BS went. Blankfein could never prove that such a run on GS would have resulted any differently and Geithner and others think very differently about what outcome would have taken place.

You, like many on this site, confuse CAUSATION will CORRELATION. You see rich Hedge Fund managers live in mansions and drive luxury cars while you it in your pleather chair coming up with theories because companies implode.

Let me shed some light on WHY companies like Lehman and Bear Stearns rightfully been put out of their misery.

It is called LEVERAGE. They were over levered and in Lehman’s case 40x…. yes F O R T Y. A regular stock brokerage account gives people 2x. A day trading account gives you 4x. And most people don’t sit there with their accounts fully maxed out. But the morons at Lehman were sitting there pretty at 40x with underlying assets tied to the fantasy bubble housing market. Now you’re trying to tell people that naked short sellers are the cause of their demise???

It’s not that hard, just think about it for a second. Yes shove your conspiracy theories aside and THINK.

What we witnessed was wonderful, the free market was able to act and took those clowns out of business.

Your little conspiracy theories about Goldman would be better if they too were retarded and levered at 40x but somehow miraculously survived.

Maybe what’s wrong with this world is not the Goldman’s of the world but sites like this that spread misinformation and actually hurt people. This post will probably get deleted but I hope not, for everyone’s sake.

Surely you jest.

(Can’t be too bright yourself, Mr Producer…)

However, there’s something being missed in all of this. I asked a lawyer friend of mine at the SEC the following question:

‘If a large hedge fund who has a sizable prime brokerage acct (let’s say $1B) at a provider of such services were to suddenly yank that money out and short the stock, is that legal?’ The answer was yes.

Understanding that a decision by a business such as Bear Stearns to have big clients like that who could have an adverse effect on their operations; its something altogether different for that client to be able to pull money out of Bear and then simultaneously short the stock. If a firm is in trouble, a prime brokerage client may pull his/her funds from the firm, that is w/out question. They should, however, be restricted from shorting shares in said firm for a period of 30 days. There is no doubt that large hedge funds were pulling their funds out of Bear which was obviously having a deleterious effect on the firm’s outlook, AND WAS NOT PUBLICLY KNOWN information. Meanwhile, these firms were also shorting the stock having this inside information. The SEC undoubtedly knows who these firms are due to their wide ranging subpoenas issued many many months ago.

I don’t doubt that naked short selling was hurting the firm, but actions like that described above, in addition to manipulation in the CDS market were bigger things that brought down the Bear….

Thanks for the discussion.

Slightly off-topic:
Let me put this straight: the situation for ordinary civillians in countries like many Arab countries, China and Iran are worse compared to the situation in the U.S.
However, since I dare to claim that I am ‘above average’ informed about world politics a.o. things: I say wait and see.
Just witness for example the ‘silent marriage’ between the U.S. Police and the U.S. Army…aimed at controlling the U.S. civil population. And as I am a fequent watcher of independent filmmakers like Michael Moore and Alex Jones — I don’t agree with all their claims and visions — I do witness how the average American police officer reacts when those journalists are filming…in public space. Isn’t the broader American public ignoring the fact that non-influential tourists from Japan or Denmark…can film almost anywhere in NYC and Washington…whilst guys like Moore and Jones are always being harrased and hindered by either the American police or men from ‘secret services’? So I do not see that much of a difference — regarding free press — between the ‘free and democratic’ U.S. of America and countries like Iran and Russia.

Secondly: I do not consider myself to be a member of the camp of ‘conspiracy theorists’ like Alex Jones or a staunch supporter of Mike Moore. I watch and read what they tell and then I’ll make my own judgements. FYI: I spent over 6 years in investigating a secretive criminal enterprise, active in NYC — even today –, which consists a.o. the most influential financial and political elite of America. I spent thousands of hours on thorough investigations and turned all sorts of public databases inside out. [Pashka: if you only knew 25% of what I know...and possess...]

Seen in the light of the latter: the political systems of Russian and America do not differ that much on basic fundamentals, but only on details. The elite in the U.S. has for example a better PR machine. So as you’ve claimed: “the government is the defacto Mafia and unlike this country their citizens can not change or influence the system through their vote or voice.”

What I can tell and advice you: open your eyes? In the U.S. there’s just a false image of a democratic system. I say: the elite runs both sides of the political spectrum, they own both ‘horses’ and the racing track; i.e. Dems and Reps candidates are just puppets of the ruling elite. John Kerry…Hillary Clinton..true Dems or Republicans in disguise? And about Obama…what kind of real change have we witnessed so far? Obama is IMHO a classic personification of a false prophet.

And about a real Mafia / MOB in the U.S.? Yes, the ruling elite in the U.S. succesfully fought the American-Italian Mafia families. Big PR shows, headlines in the media and so on. However were MOB crime bosses like Meyer Lansky and Bugsy Siegel Italians…? And how about the influence of the MOB on Wall Street? I know who financed some of the former MOB brokerages like A.R. Baron & Co and D.H. Blair & Co on Wall Street and I do know which major Banks facilitated the MOB on Wall Street. And I can tell you, based upon my own inquiries: there’s still a MOB active on Wall Street and this MOB is directly related to the ruling elite. And again: I do not claim this upon someone else research or what I saw in books or whatsoever.

In the U.S., the ruling elite saw what the MOB did and decided to take over those lucrative ventures. Drugs? Call the CIA? The money made is being invested in collusive activities that serve the interests of the ruling elite. Mass scale stock fraud and obvious manipulations in the markets? Who runs the SEC and who’s controlling the people that have to control the SEC? And where do the, as what seems to be unlimited, funds come from, that artificially inflate the DJ and Nasdaq indexes?

> next part II

Thanks for the discussion.

Slightly off-topic:
Let me put this straight: the situation for ordinary civillians in countries like many Arab countries, China and Iran are worse compared to the situation in the U.S.
However, since I dare to claim that I am ‘above average’ informed about world politics a.o. things: I say wait and see.
Just witness for example the ‘silent marriage’ between the U.S. Police and the U.S. Army…aimed at controlling the U.S. civil population. And as I am a fequent watcher of independent filmmakers like Michael Moore and Alex Jones — I don’t agree with all their claims and visions — I do witness how the average American police officer reacts when those journalists are filming…in public space. Isn’t the broader American public ignoring the fact that non-influential tourists from Japan or Denmark…can film almost anywhere in NYC and Washington…whilst guys like Moore and Jones are always being harrased and hindered by either the American police or men from ‘secret services’? So I do not see that much of a difference — regarding free press — between the ‘free and democratic’ U.S. of America and countries like Iran and Russia.

Secondly: I do not consider myself to be a member of the camp of ‘conspiracy theorists’ like Alex Jones or a staunch supporter of Mike Moore. I watch and read what they tell and then I’ll make my own judgements. FYI: I spent over 6 years in investigating a secretive criminal enterprise, active in NYC — even today –, which consists a.o. the most influential financial and political elite of America. I spent thousands of hours on thorough investigations and turned all sorts of public databases inside out. [Pashka: if you only knew 25% of what I know...and possess...]

Seen in the light of the latter: the political systems of Russian and America do not differ that much on basic fundamentals, but only on details. The elite in the U.S. has for example a better PR machine. So as you’ve claimed: “the government is the defacto Mafia and unlike this country their citizens can not change or influence the system through their vote or voice.”

What I can tell and advice you: open your eyes? In the U.S. there’s just a false image of a democratic system. I say: the elite runs both sides of the political spectrum, they own both ‘horses’ and the racing track; i.e. Dems and Reps candidates are just puppets of the ruling elite. John Kerry…Hillary Clinton..true Dems or Republicans in disguise? And about Obama…what kind of real change have we witnessed so far? Obama is IMHO a classic personification of a false prophet.

And about a real Mafia / MOB in the U.S.? Yes, the ruling elite in the U.S. succesfully fought the American-Italian Mafia families. Big PR shows, headlines in the media and so on. However were MOB crime bosses like Meyer Lansky and Bugsy Siegel Italians…? And how about the influence of the MOB on Wall Street? I know who financed some of the former MOB brokerages like A.R. Baron & Co and D.H. Blair & Co on Wall Street and I do know which major Banks facilitated the MOB on Wall Street. And I can tell you, based upon my own inquiries: there’s still a MOB active on Wall Street and this MOB is directly related to the ruling elite. And again: I do not claim this upon someone else research or what I saw in books or whatsoever.

In the U.S., the ruling elite saw what the MOB did and decided to take over those lucrative ventures. Drugs? Call the CIA? The money made is being invested in collusive activities that serve the interests of the ruling elite. Mass scale stock fraud and obvious manipulations in the markets? Who runs the SEC and who’s controlling the people that have to control the SEC? And where do the, as what seems to be unlimited, funds come from, that artificially inflate the DJ and Nasdaq indexes?

In Europe, for sure in Western-Europe, there’s a strict separation between 1, the governments, 2, the political parties, 3, the Judicial system. Though in the U.S.? I can tell you: there’s no such thing as a separation between the Judicial system, the political system and Law Enforcement. Just have a look of how Bush eliminated a substantial number of ‘independent’ DA’s?

So I do NOT claim that all is well in Europe; far from that. But I do claim that there’s, below the visible surface, really not much of substantial difference between the way China and Russia are runned in comparison with the way the U.S.A. is runned. And say what you want to say about Russia, but current Russia under Putin and his gang, is IMHO a true blessing to the world. In about 50 years from now, the importance of the Putin era and its influence on the world, will be acknowledged by many Americans. Putin is also a warcriminal, but if you look of how he managed to embrace Turkey and how he managed to lure the Turkish elite out of the camp of the Jewish-American neocons; IMHO Americans owe Putin great respect as he’s the man — accompanied by China, Brazil and some Arab countries — that effectively can block the ongoing major world problems, as caused by the American elite and Jewish-American neocon warmongers. Obama’s bow to the Muslim world? The cause of that event? Its Russia’s successful friendship with the Turkish government — humiliated by Israel — and America’s elite’s wish to have the Nabucco gaspipe trough Turkey….to tackle Russia’s gas revenues.

And yes I do recall Tiananmen square and the recent events in Iran. But do you recall the state of chaos during the Jeltsin era in Russia? Do you know that the grandson of former pres. Roosevelt and the father of gen. Norman — Desert Storm — Schwarzkopf did during ‘operation Ajax’ vs. the democraticly elected government of Iran? China’s change from the Communism based dark ages, to more freedom and economic prosperity for its citizens, is entirely based upon the Singaporese model. So forgive me but: the Tiananmen murder was a nescessary evil event. And in Iran? Some guys will get hanged that couldn’t resist CIA funds; so they are traitors and quislings. Trust me on this one: as soon as Iran gets the A-bom, the ruling Ayatollahs will give more freedom to the Iranian people.

Regarding the issue of educating the American people: Yes! I do fully agree on that issue. I stated it already in my posts above: expose the crimes committed…but stay away from the U.S. Stock Exchanges.

However, since I myself have several times informed the SEC, in detail, on criminal offenses and nothing ever happened, I am open for any sensemaking reason of why anyone should write petitions to the SEC?

Factually: the real power over the SEC…is in Congress. And I myself would suggest to expose those d*mned whor*s, those U.S. Senators, that are being bribed by the crooked Banks and Brokerages. These wh*res are IMHO factually the root cause of naked shorting and other kinds of criminal offenses; they look the other way, whilst innocent American investors and entrepeneurs are being screwed on a daily basis.

The Senators that have to control the SEC…are democraticaly chosen and thus owe a fiduciary duty to the American voters. However…they only dance for the powers that fund their election campaigns; i.e. Banks like J.P. Morgan a.o.

So if one wants to fight naked shorting and a fundamental change at the SEC? Aim at the crooked Senators and expose them! Open a website called: wallstreetwhores.org ?? Portray the particular Congressional subcommittee as a criminal enterprise, runned by Senators that act as docile prostitutes to criminal Bankers, allowing them to Bankroll America and [thus] are committing election fraud. These Senators are selling nothing but snake oil to the American public.

So my strategy would be: 1., expose the crimes on Wall Street and 2, expose those Congressional prostitutes.

Attending ’round table events’ at the SEC, as Judd did? [No offense intended.] He’s entitled to make his own decisions. Though the last time I went for witnessing a total charade, was when I was still very young.

OK, that’s it for now;-)

A salute from Europe,

Dirk.

I disagree with you on soooo many levels regarding demonization of China, Russia, Iran, or any other undemocratic nation. I am immigrant from the former USSR so I know first hand how corrupt and inneficient a government can get so you understand I am not being biased.

All of the nations that you have listed are much worse than the US because the government is the defacto Mafia and unlike this country their citizens can not change or influence the system through their vote or voice. If they try to change or speak out against the powers at be than they are censored, thrown in jail, or hanged.

The beauty of the US is that political power can change drastically as they have in the 2008 election without a single drop of blood spilled. What happens in Iran, Russia, or China when the power in control get threatened with political change?!? Recall Tiananmen Square or the recent protests in Iran…

On the other hand, if US citizens get educated, empowered, and demand change many politicians would have to listen because otherwise they will lose their office – this is why I advocate people to write their congressmen and SEC officials.
http://www.sec.gov/spotlight/shortsales.shtml
http://www.petitiononline.com/mrktrfrm/petition.html

Respectfully,
Pashka

Thank you guys for the discussion:-)

I think, regarding the naked shorting issue, we need to apply some Ross Perot wisdom.
Ross Perot once stated that the difference between him — as a entrepeneur — and IBM could be explained in a simple metaphor. Mr. Perot stated that if the people at IBM would encounter a snake, a committee or a task force would be formed and this committee would spend months on the question: ‘What to do with the snake?’ The answer and solution by Mr. Perot was quite simple and effective: ‘I would just kill the snake.’

Now let’s put this ‘snake metaphor’ in the context of the U.S.’ financial markets and let’s witness some facts?

Posted by calltoaccount, october 3 — scroll upwards –, some phrases out of an article written by Gary Matsumoto.
Quote, 1.: “A fail-to-deliver is a trade that doesn’t settle within three days.“We had another word for this in Brooklyn,” said Harvey Pitt, a former SEC chairman. “The word was ‘fraud.’”

> And what exactly did Harvey Pitt do at the SEC, when he was in charge? Totally nada, nothing.

2.: “While the commission’s Enforcement Complaint Center received about 5,000 complaints about naked short-selling from January 2007 to June 2008, none led to enforcement actions, according to a report filed yesterday by David Kotz, the agency’s inspector general.”

> Article dates back from March 19, 2009…and before we know…it will be March 19, 2010. So all crooks will still have a Merry Christmas and won’t have to eat fried crow @Club Fed…thanks to Mr. Kotz.

3.: “The way the SEC processes complaints hinders its ability to respond, the report said.”

> So what happened over the past months? Any signs of appropriate activities? I guess not.

4.: “Yet the trading pattern that emerges from 2008 SEC data shows naked shorts contributed to the fall of both Lehman Brothers and Bear Stearns Cos., which was acquired by JPMorgan Chase & Co. in May.”

> Ahhh…well…, right…thus the ‘smoking gun’ is to be seen in all the trading records. Though if that’s the case, why don’t we see any appropriate acts by the Federal Enforcement Agencies…any indictments due…or?

5.: “Abusive short selling amounts to gasoline on the fire for distressed stocks and distressed markets,” said U.S. Senator Ted Kaufman, a Delaware Democrat and one of the sponsors of a bill that would make the SEC restore the uptick rule.”

> Well, so far we can witness following: all those Armani suits wearing ‘arsonists’, that are active in the Financial Markets and are called brokers, have no fear and neither aim to run from the crime scene. And about restoring the uptick rule? What kind of BS is that? The SEC receives thousands of complaints…but there’s no follow-up in terms of criminal enquiries. How about introducing the ‘downtick rule’: if you’re once caught in illegal trading schemes, you get a hell of a fine and if caught twice: the shop will be closed, all of the senior staff goes to jail and will be stripped from their private assets.

6.: “Reinstating the rule would end the pattern of fails-to- deliver revealed in the SEC data, Kaufman said.
“These stories are deeply disturbing and make a compelling case that the SEC must act now to end abusive short selling — which is exactly what our bill, if enacted, would do,” the senator said in an e-mailed statement.”

> Yeahhh…a new Bill will close the hole in the roof. New Bills as the miracle cure! Anti-drug abuse Bills have lead to a total cease of drug abuse and similar counts for Bills against DUI. Just create a new Bill and all problems are solved? Is this Sen. Kaufman perhaps on crack?

7.: “The SEC last year started a probe into what it called “possible market manipulation” and banned short sales in financial stocks as the number of fails-to-deliver climbed.”

> Ohh thank G*D…finally! But look, who’s running the SEC and who’s sponsoring the members of the following Congressional Committee: http://en.wikipedia.org/wiki/United_States_Senate_Banking_Subcommittee_on_Securities,_Insurance,_and_Investment?
Chairman Jack Reed D. is IMHO just a wh*re of the perpetrators? http://www.opensecrets.org/politicians/contrib.php?type=C&cid=N00000362&newMem=N&cycle=2010

And…so, factually said: illicit naked shorting schemes are only met with appropriate acts…when U.S. Banks and Brokerages are the subject of malicious trades? Pretty dismal I would say.

8.: “On its Web site, the Federal Reserve Bank of New York lists several reasons for fails-to-deliver in securities trading besides naked shorting. They include misunderstandings between traders over details of transactions; computer glitches; and chain reactions, in which one failure to settle prevents delivery in a second trade.”

> Well, that’s all BS.
Pivotal question: who’s running the show at the Fed. Reserve Bank of New York? I guess…no I am sure: exactly the same crooks that fund the Senators…which have to control the SEC and have to take care of proper oversight? Everywhere outside of the U.S. such is called either bribery or corruption.

9.: “Suffice it to say that in a readily available stock that is traded frequently, there has to be an explanation to the appropriate regulator as to the circumstances surrounding the fail-to-deliver,” said Richard Baker, who served in the U.S. House of Representatives as a Republican from Louisiana from 1986 to February 2008. If it’s a pattern and a practice, there are laws and regulations to deal with it,” he said.
Fines and Penalties”

> Sure, the U.S. judicial system can apply lots of fines and penalties. He hey..there’s even a possibility to lock people up! Since Mr. Baker is from Lousiana, he sure knows that a lot of African Americans are every year being caught and subjected to fines, penalties and prison terms. However…if you’re a white male American…have donated to political parties and are working at a major U.S. Bank…you can rob the Bank or even sink it…nothing will ever happen to you….despite all the fines and penalties.

Perhaps Congress should prepare a Bill that calls for more jobs for African American males in the Financial Markets. Would such a Bill stop all criminal acts in the Financial Markets? I don’t think so, but I am sure that we will witness some more prosecutions; U.S. Law Enforcement Agencies do go after African Americans. So I guess its well worth a try?

10.: “Since July 2006, the regulatory arm of the New York Stock Exchange has fined at least four exchange members for naked shorting and violating other securities regulations. J.P. Morgan Securities Inc. paid the highest penalty, $400,000, as part of an agreement in which the firm neither admitted nor denied guilt, according to NYSE Regulation Inc.”

> Whhhhàààt…? NYSE Regulation Inc.?
Excuse me…but what’s next?
MS 13 Punisment Inc. or MOB Executions LLP? Or Wal-Mart Court Corp.?
IMHO if NYSE catches a member on violating the Law, the NYSE should call in the appropriate Law Enforcement Agency.

OK…guys…its about dinnertime overhere in Europe…so I got to stop now.

Hopefully all DeepCapture readers can witness what exactly is happening. There’s a snake inside your Financial Market and all what Congress does, is just selling Snake Oil. So if you want some Snake Oil in order to get cured from being naive, please keep your money invested in the U.S. Markets. Sooner or later…but you will get cured, that’s guaranteed!

So I reiterate my advice: the best way to act against naked shorting a.o. is: to withdraw your money from the U.S. Markets.

All the best,

Dirk.

Forget it guys and you better wake-up, because ‘your government’ i.e. a U.S. government elected upon honest democratic principles, ceased to exist from the moment whereupon pres. Kennedy got killed. Its not even a ‘Government Sachs’ that is running the show in your country. ‘Government Sachs’ is just some sort of a butler for the ‘dark powers’ that run your country.

Take my advice: the best solution for the problem of ‘naked shorting’ is to avoid investing on Wall Street. Question: have you guys ever asked yourselves of why the Arab countries, China, Iran and Russia are demonised in your mass media? In those countries they know how to deal with fraudsters and corporate crooks. They are either hanged, locked-up in Siberian prisons or get a shot in the head. And what’s happening in the U.S…? Right; corporate crooks and swindlers that make substantial donations to either the Dems or the Reps…either live in $50 million NYC based penthouses or in castles located in Connecticut and if they’re not at home? They are either in Aspen or in the Hamptons.

So why not invest your money in China and Russia, where they know how to deal with crooks? Would you invest in a country where crooks are being pampered and where those same crooks are running the government, control the Law Enforcement Agencies and the Judicial system? What do you say? That’s a Banana Republic? 100%!

Face the facts: America has been Bankrolled and is corrupted till the bone. All well organised by the same powers. So I am sorry for you guys:…if you think you can change the system, IMHO you’re dreaming and are living in La La Land. So don’t try to change the current system. My advice: just expose it and let it implode. Once your financial system has been imploded, the powers that screw you now, won’t be able to control the masses.

The best way to fight ‘naked shorting’ is IMHO not to invest your money in the U.S. markets.

All the best,

Dirk.