They said that seeing naked short selling is like seeing UFOs. If that is the case, then UFOs, at UBS, are real.
When attempting to understand much of what happens at the Securities and Exchange Commission, I believe moral hazard is nearly as important a factor as the much more frequently-discussed matter of regulatory capture.
David Einhorn would have you believe that he is brave crusader against corporate malfeasance. The truth is, he's a fraud who did serious damage to the markets.
Goldman may be flush with cash, but with pressure mounting on politicians to reject any of it in the form of campaign contributions, suddenly that cash doesn’t spend nearly as well as it used to.
But dig a little deeper and you’ll find the Stanford case is the bigger outrage by far, not so much for the scam itself, but for the shocking behavior of the regulators tasked with preventing it. Where Madoff was enabled by SEC bureaucratic incompetence, Stanford was empowered by overt SEC indifference.
Because our financial markets are so large and complex, and our financial markets regulator so captured and inept...we, the investigative bloggers, are stepping in to do the job the SEC either cannot or will not do.
Nearly one year after its original date of publication, my video, "Hedge funds and the global economic meltdown" has finally received its first bit of serious criticism, and I can’t express how pleased I am about it.
A gotcha video shows how naked short selling works. But the scary thing is, the Mafia already knows how it works.