How Wall Street Really Works

Carlos,

This site has a booklet, that you can read, or print out for yourself to study at your convenience. It's designed to explain the Naked short situation with regard to specific companies, and you should show it to your state representatives, so they can see how the State's can help to stop this criminal activity.

www.theallstreetjournal.org

You'll not only understand it better, you can even help to stop it.

Carlos,
They take your money and give you nothing. It's that simple. That's fraud and manipulation.

Umm. . . I still don't get it but whatever.

“The next item on our agenda is the serious problem of abusive naked short sales, which can be used as a tool to drive down a company’s stock price to the detriment
of all of its investors”.

- Christopher Cox, July 12, 2006 (Head of the SEC)

sammysoul, let's get one thing straight:

Settlement failures are all illegal. Why would Wall Street

1. Sell shares,
2. Take investor money,
3. Then fail to settle (deliver) them as contracted, but
4. Keep investor money despite not settling, and
5. Not tell investors that no shares were delivered?

Why sammysoul?

Naked short selling is sometimes legal for short periods of time before the settlement delivery date. However, after the contracted settlement date, the share must settle as contracted, period.

The naked short sales that we are concerned about are those that lead to settlement failure. Not those naked short sales which settle as contracted.

http://investorprotectioncoalition.org/Enforcement.html

Why does Wall Street engage in this practice? Do they profit from

1. Depressing stock prices on purpose by,
2. Failing to settle and deliver as contracted?

Sammysoul you know the answer is that Wall Street profits from that.

I predict that the basic jist of sammysoul's next posts will go something like this:

- naked short selling is not the same as settlement failure (true, but not what we're talking about. What we're talking about are those that do cause settle failures)

- naked short selling does not depress prices (false, they do depress prices)

- Patrick Byrne is crazy (false)

- naked short selling is good (Empirical evidence, not mere opinion please)

- Naked short selling is not big deal (tell that to the affected companies and investors, employees, etc...)

- Those rallying against this are a bunch of nuts, losers or have been in trouble with the law before....(not to my knowledge, those he cites were never a part of our organization)

Or perhaps we should all read Senator Kaufman's bill before the US Senate:
http://kaufman.senate.gov/press/press_releases/release/?id=1175F96B-603C-494E-BD...

Then go to www.deepcapture.com and see for yourselves.

How about this letter signed by over 1,100 investors:
http://investorprotectioncoalition.org/files/NCANS_final_Spet_30.pdf

I could go on and on..........
Tom Vallarino

The issue is a just little bit more complicated than simply blaming naked short-selling and conspiratorial hedge funds. I got riled up by the Deep Capture blog as well until I found that the issue is old, has been dealt with in courts, through rule changes by the SEC in 2005 (keyword: regulation SHO) and again in September 2008 (see link). If anything, the SEC rules are now biased against short selling.
Also you should know that the CEO of Overstock.com was the main sponsor of an Astroturf organization called the National Assn. Against Naked Short-Selling which seized to exist in 2004 and he is now fighting a one-man war against what I mostly read is a phantom war. You should also know that past members of this association have themselves been in trouble with the SEC for market manipulation, due to them trying to push the price for their penny-stock companies (http://is.gd/pv86).
Short sellers are the mortal enemies for penny-stock pushers, since they are the only ones who can bring an artificially inflated stock price down to its fair value. So no wonder, that Lehman Brothers CEO (and many other CEOs before him) are railing against (naked) short sellers, since they also needed their house of cards to be left untouched.
Naked short-selling is btw not illegal per se, e.g. for market makers. You can read about all these issues at the SEC and will realize the Overstock.com CEO has been given ample influence in the current regulations against short-selling.
All I'm saying, it's not as simple and conspiratorially seamless as we all like to believe.

It's time to real in these bastards and put the lot of them in jail. The destruction of real lives is what we are talking about and anybody who has profited by someone else's loss does not know the true meaning of karma.

Wall Street is just like high school...Seriously...everyone needs to grow the **ck up!!

Tom, I think this version does a great job introducing the idea that the financial media and certain hedge funds collude to destroy companies by spreading rumors and selling phantom shares. Kudos to you and the editors at Current.TV!

Excellent work, even shortened as it is. We've discussed many times how this needs to be administered in small measured doses. This is a fine step in that direction.

RVAC