hedge’s need to disclose their short positions.

Why they weren’t allowed to is CRIMINAL.

Sounds like bribes exchanged to politicians.

They should be required to do the same thing for a SELL order. You need to have the security in the account in order to submit the sell. You may have obtained the security by borrowing it (as in the margin account long example).

This is a fair market. Equal for buyer and seller. All participants should be required to follow that standard.

http://aaronmorgangroup.typepad.com/aaron_morgan_group_blog/

So many criminal conspirators to catch . . . it’s time.

dzimmer@aaronmorgangroup.com

I am mostly libertarian, but I recognize critical services, such as police and roads need to be owned by the people.

The people need to make sure there is a road network that allows for the efficient transportation of goods and services.

What if banking were wholesaled by the government, so that buying and selling of goods and services could also be done efficiently.

Private banks would act as the middle men, providing the buildings, paperwork and loan guarantees (they pay back loans that go bad) and you pay them a fee to insure your loan and deal with the paperwork, appraisals, etc.

- the government bank would have infinite money to lend and because of the retail bank’s role as guarantor, every loan would be repaid in full. The private retail banks would still charge based on credit worthiness and limit loans to ability to repay

- because money could be created without interest, there would be no monetary inflation

- the government could pay for its bills by just spending government bank money which they create out of thin air. The value of money would go up or down if they spent too little or too much, but there would be no such thing as government debt.

- there would be no tax at any level of government

- all deposits would be pushed from the retail banks to be held at the government bank

Just is in the current system, there would need to be checks and balances to control government spending (otherwise the spending would lower the value of the money), but under this proposal:

- there would be no booms and busts
- the banks would always be liquid and credit always available
- no taxation
- no government debt
- low unemployment
- deposits 100% guaranteed

The system would still be capitalistic, but society would be creating money out of thin air instead of the private banks doing it.

They shorted the stocks, somehow got
“interest on the money” which they used
to by CALL options to protected themselves
if the stock (for some reason went up).

Late afternoon they would call the other
heavy hitters and attack one or two stocks
… drive it down, down, down … then
at some point… let the Call Options go
(most options are never executed) …
cover the short at the low price… and
back the truck up to the door and
shovel the money in.

Getting rid of the uptick rule … has not
helped the current situation either.

All I can say is… Not Good!

Being able to Naked Short a stock is
ridiculous … great for Hedge Funds
and Market Makers … but no one else.
Theorectically you could short 10 Million
shares of a stock that only has 1 Million
shares outstanding. What is that
all about?

Thank you

And, does anyone have any problem with
Market Makers… ie Goldman, Morgan,
USB, Credit Swiss… “trading for their
own accounts now” … it use to also
be illegal. Now they make almost 1/2
their profits this way. Where is everyone?

Judd, I know you’re busy, but more podcasts would be an excellent way to help spread the word to more people. I know that events seem to be evolving on nearly a daily basis, but this a great medium to help spread the word. If you’re too busy, enlist the help of someone else to get these things out there!

How ’bout some polished, distilled version of Patrick’s excellent Dark Side / Deep Capture presentations in two or three ten minute YouTube installments, to be promoted to the public in every way possible?

The current political climate presents a false dichotomy of “more regulation” vs. “deregulation”. Advocates of the free market do not blindly oppose all regulation; we oppose unnecessary, counter-productive regulation. We favor regulations that punish force and fraud.

In a free market, you can’t sell stolen merchandise, nor can you misrepresent what you’re selling. Naked short selling is fraud, pure and simple. It is no more a part of the free market than is the proverbial sale of the Brooklyn Bridge. Those who sold shares they did not own or legally borrow are also guilty of breach of contract.

In today’s digital world, it should be feasible for each stock exchange to maintain accurate databases of who owns how many shares of stock, who has loaned shares to others, etc. It should not be possible to sell shares that have neither been purchased nor legally borrowed. If the individual transaction logs contain a precise timestamp that establishes the time line of trades, anyone trying to game the system would be caught, even if the automated systems could not prevent the transaction from occurring. Anyone who somehow manages to “sell” shares they are not legally allowed to “sell” (without some damned good explanation as to why they thought they held more shares than they really did at the time of the sale, such as having themselves been the victim of a naked short) should forfeit the entire sale amount trebled. A second offense should also suspend their trading privileges for a month, and a third offense for life.

With respect to your DVP analysis, this was primarily a tool used within the government and municipal securities segment of clearing until recently being inappropriately employed in equities. It was more used when the actual delivery was in bearer or actual physical certificate form and literally had to be shipped from one depository to another.

You are a learned source of information and as others have stated, I appreciate your commentary. You are hitting the fringes of what transpires but we are going to need to get to the “meat” to convince Congress to take action.

I am waiting for our website to be reconstructed (or at least the blog to be formatted) to post an article I have written for delivery to several Congressional representatives and publication therein. Like you and others on this site, we are ready to roll into action with a handful of publicly traded companies on the SHO List already making contact. We need more to do so and look forward to additional emails.

dzimmer@aaronmorgangroup.com

A note of interest, the number of companies on the SHO List has decreased in recent weeks but the prices of securities have not increased and the number of shares in the phantom float has not decreased. Stay tuned and watch for the article as the illegal naked short sellers have begun to incorporate two additional illegal activities into their matrix. They can run but they cannot hide forever. This snowball is much larger than it was last week and it is beginning to roll down the hill a little faster. What needs be done is for this snowball to break into smaller snowballs, each growing and building speed towards our eventual goal. Will there be restitution, perhaps, but that is going to take years. First step, get the illegal activity to stop, then deal with the idnetification of who is responsible.