The future looks bright in Fresno

    This short video clip was shot in a business class at CSU Fresno, where the basics of naked short selling were being taught. The explanation of the mechanics are just a little rough, but made up for by the introduction, wherein the instructor makes it very clear that on its most fundamental level, naked short selling is really about greed.

    Naked Short Selling from nader assemi on Vimeo.

    This post was written by:

    - who has written 103 posts on Deep Capture.


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    63 Responses to “The future looks bright in Fresno”

    1. Fred says:

      Judd

      Good catch! My take is that both speakers are students (Arlie and Julie) in MBA 215. How do you know it’s CSU Fresno? Who is the instructor? They are on to something.

      • Arlie says:

        Yes, we are both students at the Craig School of Business at CSU Fresno. This was a project for our business law and ethics class, taught by Dr. Ida Jones. This presentation is a short version of our full, narrated PowerPoint. I would be happy to provide you with a copy of that if interested.

    2. Dead cat says:

      What a fun game. I buy a house for 70,000 then take 75,000 cash out
      Because the banker wants the 
      Loan commission. Then I take the cash and forclose and run. Bank gets the toxic paper. Real estate agents are playing the game. Changing names on
      Toxic paper faster than I change underwear. 
      Ha ha your it. 

      I buy a stock same thing happens.  
      The company only has 100 shares
      Outstanding. The market makers/
      Brokers churn up and down each 
      Day taking the comission on 10 million
      Shares.  Take the money and run
      Ha ha your it.  

      Who gives a shit? The toxic paper will
      Go belly up and we will buy it and change the names.

      Those dumb ass people will not figure
      It out. We are the smart fat cats and
      We control all. We have moles working in any location we want information. 
      Easy man, no worry. Be happy.   

    3. Jim Hall says:

      Yet, in my converstaions with the head of “Investor Education” at the SEC, the coda and refrain is that “…there’s NOTHING illegal about it…”

      How do we rectify this?

    4. Sean says:

      Taken from ithe Investorsvillage OSTK board.

      getclong

      Send PM
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      Ignore

      Now what shorts?
      SEC short-sale curb may apply to market makers: sources

      http://news.yahoo.com/s/nm/20100224/bs_nm/us_sec_shortselling

    5. Jim Hall says:

      When the vultures attack via shorting, real people and communities suffer:

      http://online.wsj.com/article/SB10001424052748704431404575067403119192716.html?mod=WSJ_article_LatestHeadlines

      When will this end?

    6. cutty says:

      I have seen better explanation of Naked short selling, but it’s already a start.

    7. Jim Hall says:

      SEC decides your stock can drop 50% in a week. Bastards….

      http://www.bloomberg.com/apps/news?pid=20601084&sid=aLZZMYHxmtDw

      Meantime, deeply corrupt and mindless Mary extolling the mantra of scumsucking shortsellers everywhere:

      ““Short selling can play an important and constructive role in the markets, such as by providing market liquidity and pricing efficiency,” SEC Chairman Mary Schapiro said today at a meeting in Washington.

      • Frank Hope says:

        This article is very interesting and somewhat topical, but it doesn’t address the issue of NAKED short selling. Both regular short selling and naked short selling each have their own issues.

        The video presentation suggests that the naked short sellers eventually buy back their own phantom shares at a lower price. Then what happens? The shares disappear? Isn’t this fraud? The 10% circuit breaker rule would do nothing to stop this.

        What would happen if short selling were declared illegal altogether? I don’t really see the benefit of short selling to the market. It just creates volatility. It causes the stock to decline faster than it normally would during the sell part of the transaction, but then causes the stock to rise back up a certain amount during the buy side of the transaction.

        Psychologically it could depress the stock because of the temporary dip during the sell transaction. The whole operation is very timing dependent. It’s really a trap, a feint, to catch unknowing owners of the stock to sell at a lower price. This is because the short seller has to buy back the stock within a certain window of time. The whole procedure is designed by insiders to fool the unwitting public.

        Naked short selling is just regular short selling on steroids. The idea that some fraudsters should be allowed to sell stocks that they have no access to is ludicrous. This just goes to show how much the Wall Street financial system is tilted in favor of the insiders with access to big money which buys them preferential treatment.

        This is nothing but gaming of the system. We’ve seen how badly this can end up with the sub-prime derivatives scheme. The whole thing is facilitated by agencies like the New York Fed and the DTCC which are both owned by the very banks that they are supposed to be watching over. And the SEC, ha! Can you say “regulatory capture”? Is that where the name of this site “Deep Capture” comes from?

        Finally, I’d like to direct anyone interested to an article I wrote on this subject titled “The Phantoms of the Stock Market“. (I have links in there to the Deep Capture website.)

    8. Jim Hall says:

      NOW, HERE’S REAL SEC LEADERSHIP:

      “…Goldman Sachs, Chicago-based Citadel and D.E. Shaw in New York all urged the SEC against restricting short selling. If the SEC determined that new rules were necessary, the three companies encouraged the agency to opt for a circuit breaker. The SEC followed their advice.

      …”

    9. Sean says:

      Jim, read on my man, read on. As yourself who were the 2 votes against adopting this rule and why??

      SEC Reins in Short Sellers with New Restrictions
      Published: Wednesday, 24 Feb 2010 | 11:54 AM ET Text Size By: Reuters
      U.S. securities regulators adopted a new rule to restrict short selling more than a year after the financial crisis provoked cries to rein in investors who bet on a stock’s decline.
      AP
      ——————————————————————————–

      The Securities and Exchange Commission voted 3-2 on Wednesday to approve a rule designed to put the brakes on a stock that is falling precipitously.

      http://www.cnbc.com/id/35562488/

    10. Jim Hall says:

      Republican SEC Commissioners Kathleen Casey and Troy Paredes opposed the rules, saying they weren’t convinced the benefits from limits on bearish bets will outweigh the costs, and both voted against the agency’s rules.

    11. Sean says:

      Jim want to bet they have cushy jobs already waiting for therm at a Hedge Fund” near you? The best Commisioners that money can buy huh? Or some “White Shoe Law Firm that represents Hedge Funds.

    12. Jim Hall says:

      Another of the cabal strikes a deal:

      http://www.finalternatives.com/node/11547

      “…Last month, Gombiner told U.S. District Judge John Koeltl that the two sides were talking and that a “disposition” before trial—set to begin in April—was “very likely.”
      …”

    13. Jim Hall says:

      New SEC rule of minimal use:

      http://online.wsj.com/article/SB10001424052748704240004575085344139674042.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

      Allows a 10% drop in stock price.

      Meantime:

      “…Oct. 10, 2008, shows where the high water mark for the rule would be. On that day, 68% of stocks fell more than 10%…”

    14. ......connect the dot$ says:

      …interesting

      …….$. …….history

      Kathleen Casey and Troy Paredes

    15. Sean says:

      Jim, I have said it in the past and I will say again …”You can’t earn 3.8 billion dollars in a single year and not cheat!!!” These destroyers of value (in the name of liquidity) have to be stopped once and for all!!!

    16. pontiyak says:

      The 10% circuit breaker won’t rein in anybody….

      They just NSS down 9% every day….

      I can hear the HedgeHogs© laughing at the SEC from here.

      yak

    17. harveywalbinger says:

      Tyler Durden gets it:

      “For all those who wish CNBC would actually focus on the real problem areas of discussion, such as, oh, say Greece, and do some reporting instead of pandering to mutual fund managers puimping their books, here is a clip of what is really going on in this southeast European hotbed of IMF bailout activity.”

      http://www.zerohedge.com/article/postcards-greece

    18. ron doc says:

      Off subject of SEC capture but on subject of all FED Gov.Agencys being captured and supported by the regulated industry bought and paid for poloticians.

      http://www.jbs.org/health-care-freedom-blog/5957-proposed-dietary-supplement-regulatory-bill

      Are we doomed as a country?

    19. Jim Hall says:

      Even Cramer hates the game, or so he says….

      http://www.cnbc.com/id/35586937

    20. Anonymous says:

      I bet they used the same mortgages to back more than one bond.

      http://chinkinthearmor.net/2010/02/26/meaning-of-mers/

      MERS reminds me of Cede & Co.

      Finding the owner of the mortgage loan isn’t possible because that would expose more than one lender thinks they have collateral from the same house because the same house backed many, many bonds.

      It’s no different than naked short selling shares or government bonds – they naked short sold mortgages packaged together as bonds.

      No wonder they can’t unravel the mess.

    21. Dr. Jim DeCosta says:

      “The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”

      Let me get this new “alternate uptick rule with circuit breakers” right. The congressionally mandated providers of investor protection (the SEC)have decided to WITHOLD investor protection from the owners of a U.S. corporation until those with no economic interest whatsoever in that corporation have “LEGALLY” knocked out bid after underlying bid (in the absence of a legitimate “uptick rule”) until 10% of the value of the corporation has been taken away from those owners APPROXIMATELY EVERY DAY AND A HALF. OKEEDOKEE!

    22. Sean says:

      Jim, could it be our boy Stevie is feeling the pinch and is being forced out of reclusion?

      Cohen Trades Secrecy for Golf With Investors Lured by 30% Gains
      Share Business ExchangeTwitterFacebook| Email | Print | A A A By Katherine Burton and Anthony Effinger

      Feb. 26 (Bloomberg) — In late January, billionaire Steven A. Cohen hosted a golf outing for two dozen people at the Bear Lakes Country Club in West Palm Beach, Florida.

      Most of his guests were investors in his hedge fund firm, SAC Capital Advisors LP, plus a few prospects. The party played the Lakes Course — so named because 12 holes out of 18 have a water hazard — as 30-mile-per-hour gusts blew off the Atlantic Ocean, says Jeffrey Vale, director of research at Infinity Capital Partners LLC, who was one of Cohen’s guests.

      Cohen, who’s proud of his 10-stroke

      Complete story in link below

      http://www.bloomberg.com/apps/news?pid=20601109&sid=a0dqXyjnQ6dg&pos=10

    23. E-Mail: carlene.brown@ag.ny.gov

      For: David A. Markowitz, Esq.
      Special Deputy Attorney General
      for Investor Protection

      Attorney General of the State of New York
      120 Broadway, 23rd Floor
      New York, NY 10001

      Dear Ms. Brown:

      Thank you for speaking with me earlier today and explaining that Mr. Markowitz was out for the rest of the day. We discussed briefly the nature of my request and you suggested that I forward the appropriate information to your attention via e-mail for Mr. Markowitz’s review on his return Monday, March 1, 2010. The information is as follows:

      • I am a California trial attorney with some 40 years experience in State and Federal Court, as well as other jurisdictions.

      • In January of this year I filed a Bivens Class Action against the five sitting SEC Commissions and five past SEC Commissioners seeking some 3.87 Trillion Dollars in damages for the taking of property by unconstitutionally withholding consent to distribute such sums as had previously been collected for the benefit of 50,000 + shareholders of CMKM Diamonds, Inc.; a conformed copy of the complaint is attached.

      • The SEC Office of General Counsel has agreed to accept service on behalf of the sitting Commissioners; the other commissioners are currently being served.

      • The weight of opinion is that this litigation will not be allowed to proceed into the discovery stages and/or to trial; there is mounting evidence that a distribution of funds to the shareholders is on the near horizon.

      • I am advised that a portion of trust funds previously ear-marked for distribution to support the U.S. Domestic Settlement Fund Program currently in process were distributed to the United States Treasury facility in New York City on December 31, 2009 through and with the assistance of the New York Federal Reserve Bank in New York City.

      • I am advised that these trust funds totaled 4.2 Trillion Dollars and were paid into the U.S. Treasury as and for taxes due to be paid from the trust(s) upon distribution of the trust assets.

      • I am further advised that pursuant to Federal Banking Regulations, New York State Banking Regulations, and the Martin Act, inter alia, the transferred funds could be held without return for a maximum period of time under any circumstances for forty-five days or until midnight February 14, 2010.

      • I am further advised that the U.S. Treasury has not remitted these funds, is still possessed of these funds and more importantly the trust(s) assets have not been distributed.

      • The above circumstances, upon proof, demonstrate serious criminal violations of the statutes referred to above.

      • I represent, at least as the Class Counsel, a number of New York residents who are beneficiaries of these trust(s) and are among the 50,000 + shareholders. I know many of these people on a personal basis in addition to being their counsel of record and can attest to their severe and continuing damage suffered and being suffered as a result of the non-distribution and non-receipt of the afore mentioned trust assets; some of them are also anxious to visit you in person and describe their continuing outrage.

      Demand is hereby made that your office initiate, at the earliest possible time, an investigation into the criminal activities of those persons within your jurisdiction whom have contributed to and otherwise facilitated these criminal acts. I would be happy to discuss these facts with you at your early convenience. Please feel free to contact me directly at: (626) 564-9797. Thank you in advance for your prompt attention to this matter.

      A. Clifton Hodges (CSBN 046803)
      HODGES AND ASSOCIATES
      4 East Holly Street, Suite 202
      Pasadena, CA 91103-3900

      Tel: (626) 564-9797
      Fax: (626) 564-9111
      E-Mail: al@hodgesandassociates.com

    24. ponsy says:

      “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”

    25. Sean says:

      Anon, here is the video to back up your post above!!

      http://www.cnbc.com/id/35631950

    26. bbhindyou says:

      http://finance.yahoo.com/banking-budgeting/article/108948/goldman-lists-new-risk-bad-press
      You have got to be kidding me!
      What next?
      We can’t talk bad about the bad guys?

    27. Sean says:

      Jim, piggybacking on your great find of an article above.. One would think that these guys would lay low especially “little Stevie” since he has been under the DOJ microscope lately but no, he is getting into this even deeper. How confident are these guys that they won’t be stopped, prosecuted or even reprimanded? They must have been given a get out of jail free card huh?

      Soros, Paulson Hedge Fund to be Investigated for Bets Made on Demise of the Euro
      By editor|Mar 3, 2010, 1:56 AM|Author’s Website

      The U.S. Justice Department has launched an investigation into whether heavyweight hedge funds including Soros Fund Management, SAC, Greenlight Capital and Paulson & Co. aggressively shorted the euro in recent weeks to destabilise it, the WSJ reported on Wednesday, citing people familiar with the matter.

    28. Kevin says:

      This fractionally backed stock ownership system traces back to the fractionally backed private banking system.

      http://www.washingtonsblog.com/2010/03/nobel-prize-winning-economist-federal.html

      Joseph Stiglitz – former head economist at the International Monetary Fund (IMF) and a nobel-prize winner – said yesterday that the very structure of the Federal Reserve system is so fraught with conflicts that it is “corrupt” and undermines democracy.

    29. Anonymous says:

      Notice his logic. Of course the market maker has to naked short the stock to cover the puts. Otherwise it wouldn’t be a riskless trade and guaranteed profit to the market maker.

      What he’s missing is that in his scenario, the derivatives, which are supposed to derive their price from the underlying stock are instead setting the price of the underlying stock.

      http://seekingalpha.com/article/192393-bear-stearns-boogie-man-yet-again

      That’s not how it’s supposed to work. Derivatives are supposed to be a side bet, with no impact on the underlying stock (or other asset) price.

    30. Sean says:

      Wanted to make sure this was spread far and wide..

      Harry Markopolos On The Daily Show With Jon Stewart
      http://www.thedailyshow.com/watch/mon-march-8-2010/harry-markopolos

    31. Sean says:

      Jim, hopefully someone(s) will hang. They won’t be able to keep the lid on this much longer.. right CNBC and Mainstream media!!

    32. i am reading your blog for a while now, good job!

    33. SteveM says:

      Remember, we were told not to worry about Hedge Funds, because they are sophisticated investors… right!

      We bailed their asses out with our unsophisticated and hard-earned dollars. This game is so rigged.

      Today we heard from Nancy Pelosi that we must pass healthcare reform because Social Security will go broke otherwise. What about the money that was paid into this program that was also stolen by our “elected representatives?”

      At what point is this prosecuted as treason?

    34. Mikayla says:

      This fractionally backed stock ownership system traces back to the fractionally backed private banking system.

      http://www.washingtonsblog.com/2010/03/nobel-prize-winning-economist-federal.html

      Joseph Stiglitz – former head economist at the International Monetary Fund (IMF) and a nobel-prize winner – said yesterday that the very structure of the Federal Reserve system is so fraught with conflicts that it is “corrupt” and undermines democracy.

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