Where is Superman? Is he “Deep Captured”?

Look, up in the sky…  It’s a bird… it’s a plane…  No!  It’s, it’s …Chicken Little?

Time and again we hear the media, politicians, and financial “experts”, in an effort to protect their careers and/or reputations, say:  “NO ONE SAW THIS FINANCIAL TSUNAMI COMING!”   There are a few media clowns now coming out of the woodwork that claim with their 20/20 hindsight, that they saw it….  “but just underestimated its size a scale…  and that no one could have predicted that!”  (or even better, amongst those clowns 500 bullish articles, they wrote 1 skeptic article, for which they now hold to the light of prophetic genius.)

Well, to most of the long time readers here on this RGE blog and the various other terrific financial blogshere locations…  We know that the statement “NO ONE SAW THIS COMING” just ain’t true!  For those of us, that gathered here (and throughout the internet), and spent the last few years studying this crisis and warning our family, friends and anyone else who would listen, that statement is an infuriating slap in the face and a boldface lie!

Chicken Little becomes Dr Doom

Prior to the 2008 collapse, we watched first hand, the media puppets call people like Nouriel Roubini “Chicken Littles”.  Amazingly enough, upon being proven right, that the sky was indeed falling, the most prophetic “chicken little” of them all, was given a new nickname.  Dr Doom!  Dr Doom???  …an evil comic book character that is bent on destruction?!?!?!  (Yes, many others have worn that tag before Nouriel.  …but the beauty of this tag/name is, the bullish media can start to use it against him when they need optimism over reality)  So Dr Doom is the name we came up with.  …just because he was nice enough to point out to the public what was about to happen.

(I guess it makes more sense now.   To the media, and those in control of the media who wanted their fictional world of fake profits to continue, Nouriel was the most evil man around!  Damn him for exposing this façade!  Damn him for bringing an end to the fake corrupt profits!  Damn him for telling the truth about the economy!)

The Fixed Income Façade …or should we just call it crime?

The first half of our downturn had to do with fixed income.  It is within that realm that debt creation and credit expansion existed.  The accurate predictions of our economic downfall by Nouriel (and me) were based on superior analysis in the contraction within this arena with regards to overall access to credit.  It was seeing how the contraction correlated via contamination to the rest of the market, starting at subprime, and leaking into ABS’s, CDO’s, etc …and then ultimately the entire market.  On the upswing, the expansion of credit (which was “massively understated inflation or “condenflation”) led to large scale subprime equivalents within CorpRE LBO’s, etc…  (which have yet to expose their full negative effects “a la tip of the iceberg”) and have now laid the foundation for the collapses/bailouts we now see explained ad nauseum.

These correct predictions have played themselves out, and now the downturn has exposed the balance sheets of an economy that was being run far too recklessly.  In hindsight, we now see abuses that border on criminal.  From the passive individual, who overextends their American dream to buy a home they can’t afford, to the collusive lender who wrote the loan in the first place.  Then to the corrosive packaging, and shipping out of the toxic waste to the financial system, in a credit feedback loop that was somehow out of the regulatory oversight of those who should’ve been analyzing the risk involved.  …as this financial virus extended itself, the financial wizards of Wall St, over leveraged themselves in their own borrow/buy/lend loops where they pocketed the spread, and then gamed the system further through CDSs and other financial innovations which helped them achieve self fulfilling credit loops and false profits.   This false mitigation of criminally negligent risk threatened systemic collapse, but reaped massive financial gain for those on top, not afraid to rape the American economy on their short term gains that couldn’t be paid off long term.

Financial innovation and complexity, along with regulatory, media and political capture, allowed a great number of well connected individuals and companies (with access to credit, or credit creation), to artificially inflate and/or manipulate the market for short term gains, (that they would profit from and extract) in what amounted to the greatest worldwide macro economic pump and dump we have ever seen!!!  Its complexity kept this fleecing obscure from the public.  The political and media compliance (or lack of understanding) guaranteed its success.  This was not a nefarious plot devised in some dark room by some sinister financial criminals…  but rather a community of intellectuals who knew how to game the system.  …and their checks and balances (the regulators, the press, the politicians) either stepped aside, didn’t understand what was going on (which meant they were UNDER QUALIFIED to perform their duties!!!) or were compliant in aiding its success.

This charade had been allowed to continue for too long, and now the government writes our checks to cover these losses that now result from the artificial enhancement of an economy that was allowing it to be robbed by financial elites.  What’s worse about this crime is that not only were these passive white collar criminals allowed to achieve and keep their fortunes, because we were unable to understand the complexity of the crime… …but it seems as if there is no way for us to hold these criminals accountable since they always worked the loopholes of innovations that outpaced regulations and/or legal precedent.

To Hank Paulson, who financed studies while at Goldman Sachs into the financial risks of CDS, leverage, and debt arbitrage, and then not only chose to ignore the results of those studies, but instead elected to “double down” and ramp up leverage for “RECORD EARNING PROFITS”…   …we now see that your “record earning profits” during the artificial bull run were just an illusion.

WHY THE HELL DO YOU STILL GET TO KEEP YOUR BONUSES THAT YOU “EARNED” FOR THOSE YEARS OF FAKE “RECORD PROFITS”!?!?!?  You didn’t front run on a stock.  No what you did was worse.  You front ran on the market as a whole!

You criminal!  You and your other corporate pirates toed the line of criminal negligence and outright theft and you personally compounded the theft with your sticky fingerprints being allowed to spread the financial virus to the taxpayers through your actions as head of the US Treasury.  Where is justice?

If Nouriel is Dr Doom, then who is Lex Luthor?  It’s Patrick Byrne!

Sure, Hank Paulson looks like Lex Luthor, and he acts like him, (although his actions have somehow been labeled under the veil of:  “doing things in our best interest”…   hmhmhmhm, hahaha – (evil laugh)) …but Hank is not Lex Luthor.  No.  These criminals are given great titles like CEO/Treasurer/etc., great sums of money, and great power.  Instead, the villainous titles like Lex Luthor (or Dr Doom) are reserved for the people who are trying to put a stop to crime.  Those titles are set aside for the whistle blowers, truth tellers and exposures of criminal elite and the “captured media”.  Those evil titles are saved for people like Patrick Byrne.

Patrick M. Byrne is President, CEO, chairman of the board and founder of the Internet retailer Overstock.com. (“The O” was formerly Discounts Direct, but changed its name to Overstock shortly after Mr Byrne bought a controlling stake.)  His prior resume is also fairly impressive (beyond his father’s Geico legacy), working for companies owned by Warren Buffett  (another evil whistle blower!!!  “CDS are financial WMDs”  Damn the Oracle of Omaha!)  …but somewhere beneath the surface of this seemingly innocent CEO lurked an evil presence!  The alter ego, Patrick “Lex Luthor” Byrne, founder of “Deep Capture”, a website bent on exposing the illegal practice of naked short selling, and the complicit layers of “captured” media, politicians and regulators.

His evil lair can be found at:  www.deepcapture.com

(The term “Deep Capture” refers to Jon Hanson’s theory into “critical realism”, where various social psychologies, sciences and other driving forces lead “market-actors” to look to influence or take control of entities that they are controlled by, thus letting those market-actors exploit the promotion of what is most beneficial to themselves.)

***At this moment let me take a break to throw out the following disclaimer:  I know nothing about Overstock as a company.  I do not pretend to be even remotely knowledgeable about the health or strength of this company, nor do I believe I have any valuable insight into whether or not Patrick Byrne is good or bad CEO.  This article has very little to do with Overstock and Patrick Byrne as it’s CEO, but rather Deep Capture and Patrick’s involvement there.  It just so happens that there are some crossovers, due to the alleged Naked Short Selling that Patrick is trying to expose, and the fact that he claims his company to be a victim of it.  At the same time, I’d also like to state that I am not here to validate the statements made in Deep Capture.  That is for you to decide for yourself.  My personal theories run very parallel to many theories (and evidence) contained within Deep Capture, but I can not vouch for the authenticity of that information.  (once again this is for you to draw your own conclusions)  The following is my interpretation of Deep Capture.***

Reality vs a Synthetic Reality

As a preface to the story I feel it’s almost become painfully cliché to quote Alice in Wonderland or The Matrix, in an effort to show the public just how far the deceptions our economic reality have become.  I feel that when these absurd or extreme deceptions or conspiracy theories become a fact of life, it seems so inconceivable as a reality that we could’ve “actually” let this happen, that we find ourselves in a state of denial.  We say:  “OK, I’m sure some of the shenanigans go on… but it’s really not “that bad”… is it?   It can’t be!  That wouldn’t be allowed to happen!  That’s impossible!  There’s no way it could’ve actually gotten that far without someone doing something about it, stopping it, or at least exposing it!!!!   Right?!?!?!?”  At some point within reading about the conspiracy of “Deep Capture’s” proposed synthetic reality… you have to stop and ask yourself:  Could this really be true?  …or are these just figments of Mr. Byrne’s overactive imagination?

The Story of Deep Capture

When you go to Deep Capture’s website, you may come across this warning…  Take heed:

“The Columbia School of Journalism is our nation’s finest. They grant the Pulitzer Prize, and their journal, The Columbia Journalism Review, is the profession’s gold standard. CJR reporters are high priests of a decaying temple, tending a flame in a land going dark.

In 2006 a CJR editor (a seasoned journalist formerly with Time magazine in Asia, The Wall Street Journal Europe, and The Far Eastern Economic Review) called me to discuss suspicions he was forming about the US financial media. I gave him leads but warned, “Chasing this will take you down a rabbit hole with no bottom.” For months he pursued his story against pressure and threats he once described as, “something out of a Hollywood B movie, but unlike the movies, the evil corporations fighting the journalist are not thugs burying toxic waste, they are Wall Street and the financial media itself.”

His exposé reveals a circle of corruption enclosing venerable Wall Street banks, shady offshore financiers, and suspiciously compliant reporters at The Wall Street Journal, Fortune, CNBC, and The New York Times. If you ever wonder how reporters react when a journalist investigates them (answer: like white-collar crooks they dodge interviews, lie, and hide behind lawyers), or if financial corruption interests you, then this is for you. It makes Grisham read like a book of bedtime stories, and exposes a scandal that may make Enron look like an afternoon tea.”  – By Patrick M. Byrne

Beginning in 2005, Patrick Byrne started a campaign against naked short selling, a practice which “supposably” did not exist.  He claimed that his company (Overstock) had become a victim improper acts by Wall Street firms, a hedge fund, and an independent research firm.  It further goes on to say that these financial entities, in coordination with journalists, were colluding in an attempt to profit through illegal naked short selling aimed at various companies.

(Naked short selling is illegal.  Unlike Short selling, Naked shorting involves selling shares of something that you don’t own and haven’t borrowed.  This illegal practice can give you the ability to sell limitless amounts of shares, thus driving the stock price down since more sells then buys creates an oversupply of the stock.)  He states that this can be done through a loophole in DTC/DTCC, where the settlement of a trade typically takes 3 days.  During that time, and there after, traders can book sells, but never deliver them.  (“Phantom Shares”)

***With a career in settlement operations, I can confirm that undelivered trades, (fails for various reasons) are very common!!!  …and this has never been disputed.  It is the concept of undelivered “phantom shares” that is in question of existence.  For years, this was not considered possible, but no one could see into DTC’s black box.  The economic collapse of 2008 has finally exposed this concept as a VERY REAL REALITY, so real that it became a centerpiece of emergency legislation for our regulators and policy makers to save our economy and a certain number of well connected financial institutions that were in danger of falling prey to this mythical practice that supposively DID NOT EXIST.***

Within Deep Capture website, they peel back the layers of corruption that were involved with this naked short selling practice, and connect many of the dots, of how these financial criminals were able to “get away with” performing a BLATANT CRIME.  Deep Capture also shows “proof” of email exchanges between various short selling market manipulators, and their collusive correspondence with the financial media.  (some of this stuff is stunning!!!)  The manipulation and/or cooperation often appears obvious, though denied on every level.  (Cash trails are not in plain view…  but you would have to think that anyone that would partake in this process would know to cover themselves in this area, and not leave such obvious evidence to be found.)  Without a cash trail, it then leaves the reader to speculate on intent, which then comes down to a question of whether these “accused” were “players” or just “pawns”.

Many of Patrick’s accused claim that through Deep Capture, Patrick Byrne bullies those reporters who are critical of Overstock.  Is Patrick fighting the good fight against naked short selling, or is he essentially putting fear into the media of being accused of being “captured journalists” for criticizing his company?  This is up for debate, and you can decide for yourself.  I can’t speak for him, but I can say that there is good evidence that many of his attacks do have many levels of validation.  …and our downturn has vindicated him on many of his alleged claims of corruption.  (as I said earlier, I do not know anything about Overstock’s financials, or about Patrick as a CEO of that company)

Within the website, there are days worths of interesting articles, evidence and theories.   There are also active blogs where the Deep Capture team will often take part in corresponding with the blog community.  The conspiracy and many of its accused are too big or intimidating for me to take on.  (They require well funded agencies (and well protected people) to investigate them.)  I decided to do a little exploring of my own, but rather then investigate some of the menacing big wigs, I looked into some of the smaller website’s claims against media captives and whether or not I believe their roles .  The 2 that I looked into were Wikipedia and Bethany McLean.  In addition, I also bang around some questions to ask of DTCC and the USTreasury, with direct relation to the claims of Deep Capture and/or the ability of some of the claims to exist.  (I have not read such statements, so maybe they are “breaking stories”?  …or maybe not.  If someone has written about these same things, then I’d love to see a link and offer my praise.)

Wikipedia – Deep Capture

Deep Capture has brought to the public’s attention the fact that Wikipedia was subject to manipulation beyond just standard editing controls.  This is important, as a great deal of the public looks at Wikipedia in an encyclopedia type fashion, where it’s content is based on facts.  (There are disclaimers contained within Wiki, but perception and ignorance clouds reality none the less.)  Combined with the fact that Google searches often bring you to Wikipedia as a first option, it leaves Wikipedia as an extremely referenced website.

That being said, Deep Capture claimed that Wikipedia pages were being manipulated, through someone at Wiki granting limited access to particular financial writers from the Wall St media circle.  (These same writers just so happened to be connected to Wall Sts short selling community)  These individuals were complicit in keeping the public blind to the facts about concepts and practices like:  Naked Short Selling.  They did this by mocking their existence or editing WebPages like Wiki’s to eliminate their mention. (Thus helping keep the practice invalidated in the public’s eyes.)  Likewise, these same individuals were editing Wikipedia’s pages to negatively and positively promote things that best suited their own personal interests and agendas.

When this story broke a couple of years ago, it caused a bit of a stir.  (I remember the Wiki controversy from back then, but did not realize that this is what it was connected to.)  It brought to light the fact that the founder Jimbo Whales had a sorted past (running porn websites), and interesting connections to the Chicago Markets.  Since being exposed, Wikipedia has appeared to have made some changes that now reflect more open views.  (They even acknowledge Jimbo’s history… although in a very gentle manner)  …but it still is not completely un-manipulated by people with vested interests.  For example, Wikipedia, which is updated at the speed of light, still has no topic for:  “Deep Capture”???  This is the same website that will now have pages on “swine flu” minutes after the outbreak, or pages with reference to “The Tooth Fairy”.  (Go ahead…  check for yourself)

Is Bethany McLean Overpriced?

Bethany McLean came into the public’s eye 8 years ago when she wrote a piece for Fortune Magazine that questioned Enron’s value.  The piece went largely unnoticed at the time, but after Enron’s collapse, Bethany wound up receiving praise for her revelation.  She went on to co-author the book “The Smartest Guys in the Room”, which was later turned into a documentary film which she starred in.  Since then, she’s largely been able to write her own ticket as she became a “hero” in the public’s eyes.  She’s a modern day Lois Lane (she even looks like the character)  She’s a “good guy” keeping the bad guys in check!!!  …or is she?

Years ago, when Bethany was asked:  What made you look into Enron in the first place?  Bethany candidly answered:  “a call from a skeptic, Jim Chanos, who was short Enron’s stock had asked me to take a closer look at Enron’s financials”

Stop…   Does anyone have a problem with that statement???  (Sure, I know the media and Wall St. talk all the time, but doesn’t this seem a bit over the top?  Maybe, maybe not?  ..but let’s not forget that when this went down, we were in a recession environment much like today, where people were looking to make cash on the downside.)  Her findings at the time led her to believe that there wasn’t necessarily any outright fraud, but rather the financial community was taking Enron’s word at faith.  So with nothing in her pocket, (which a detective on par with Scooby Doo could’ve come up with) she still went forward with the severely negative article.  (This was gutsy!!!  …and if her intentions were un-manipulated, I’d give her kudos!!!  …but future evidence would prove that none should be given.)  As she also stated:  “I wrote the story, but only scratched the surface…  I couldn’t know what lay beneath”   Again, a lot of street credit was given to this writer, who was fed a story buy a hedge fund player with a vested short interest in Enron, and outside of interviewing some bright analysts, she was only able to discover slightly more about Enron then my dead grandmother.

Years later, Bethany wrote a story about Overstock and its CEO, where she made some damaging claims like:  “he (Mr Byrne) seems like someone who sees shadows on the wall that are much bigger than the characters who cast them. Maybe the Sith Lord is actually Patrick Byrne himself–because he has become his own worst enemy.”  This was after Patrick’s first foray into exposing the “capture” that had taken place in the market.

Within Deep Capture there are quite a few pieces of evidence linking Bethany McLean’s financial articles to Wall St players that were trying to manipulate the Market.  The proof is actual email correspondence that Deep Capture came to own.  The timing of her articles about Fairfax Financial Holdings, and her email correspondences with vested short sellers seem to move beyond coincidence.

Now we still see Bethany in the financial world reporting on the current market crisis.  Ironic is that her exposure of Enron, also brought to light many of the legal, loophole oriented practices of Enron.  Enron’s collapse has been so stripped down and analyzed, showing their trading strategies, that it has almost served as a training guide on how far you can legally push limits, loopholes and abuse to a point somewhere just short of prosecution.  This is not Bethany’s fault, but rather an ironic byproduct of her work.  …especially considering the frauds that exist in the market and her subsequent ties to market manipulators.

Even as recently as April 2009, Bethany McLean pumped out another article for Vanity Fair (which she now writes for) called “Over The Hedge”, where she still acts as a pawn/conduit for the hedge fund community.  Apart from still quoting the likes of Jim Chanos (Who’s mad at the perception of hedge funds being roach motels.), her article is scatterbrain.  At one moment, it brings to light how too much money flowed to this community, how undeserving half the johnny come lately dime a dozen hedge fund managers became (and came into easy undeserving wealth) and that so much of the community is a black box, to the next minute talking about how the industry shouldn’t be regulated because you don’t see any of these Hedge Fund Managers in Washington with their hands extended for a piece of the bailout.

When you finish reading through the lines you realize the article promotes the destruction of the johnny come lately’s, while it promotes giving a free pass to the likely hedge fund survivors under the blanket excuse of “one bad year” in comparison to all the money they made for you in previous years.  (Ironic that many of these survivors are questionable short sellers)  So down with all of these newbies, and let the funds return and stay with her old friends.  …and while we’re at it, don’t regulate them, because they were good guys and didn’t have their hands out.  She also notes that Hedge Fund salaries, compensation,  successful strategies and returns are what had clients flock to them, and forced the regulated industry to run at riskier levels to compete with them…  but a minute later she says hedge funds were “incidental to the downturn”.

Please Bethany.  Your shilling is both insulting and infuriating.  You made a name for yourself on the Enron Black Box, but now you act like it’s OK to have Hedge Fund Black Boxes out there.  Black Boxes that could implode our financial system, who we trust on faith, since we don’t know how they make their money.  Don’t contradict yourself too much.  …lest poke holes in your claim to fame.

Since I have no faith in Bethany’s investigating and even less faith in her credibility/motives, I’ll take a moment to report on the hedge fund community.  First, let’s just establish the fact that everyone in the financial worlds hand are out…  directly, or indirectly.  Second, a large degree of the hedge fund community was/is working off of lines of credit, and since those lines of credit haven’t been pulled (or their margin requirements increased to reflect proper risk/exposure levels) they haven’t been fully exposed yet.  There have been increases on margin and tightening credit lines, but not to the point where so many more hedge funds would go under.  Why?  …because the banks are in no rush to expose this.  Apart from being a major source of income for banks, hedgies help keep the fractional reserve debt cycle running.  The collapse of this recycling credit loop would expose the incestuos relationship between the banks and the hedge funds, as well as force the banks to write down the insolvent losses associated with these hedge funds that were massive over leveraged shells to begin with.  That incestuous relationship is much like the Chinese Governments ties to US Treasuries.  That, plus the fact that many of these hedge funds have essentially become the dumping grounds and/or  off balance sheets to unload the toxic assets.  (a la Loan Star, buying crap from Merrill Lynch, and then borrowing that money from Merrill Lynch to pay for it.   huh???  C’mon!  Didn’t you say “what the F?” when you heard that one???)

For the few that are fortunate enough to survive, let’s face it, they are able to survive because of 2 major reasons.  They can run so thin, on 25 -75 person staffs, so their expenses don’t expose them, and secondly, and MUCH MORE IMPORTANT, is other sources of their funding.  Much like the way Bernie Madoff’s was able to get away with his crime for so long by targeting investors like charities, (who don’t redeem massive amounts of money at a time), Hedge funds have been fleecing the Pension Fund World.  The beauty is that they can hold off their exposure here for quite some time as the funds keep rolling in at a faster rate then the outgoing obligation.  …but god forbid, the pension fund world ever try to cash out, they would expose the Social Security like shell that Pension Funds have become.  (Oh, but don’t think the Hedgies will take the blame.  They’ll blame the market downturn, rather then their extraction of fees and commissions from the fake run up.)  …and they’ll have writers like Bethany singing their praise!

…but then again in Bethany’s defense, why bite the hand that feeds you?  (Or bite the hand that pawns you.)

A while back, in Bethany McLean wrote a piece called “The Phantom Menace” for Fortune where she attacked Patrick Byrne.  She ended the article with a quote from Nietzsche.  She warned: “Whoever fights monsters should see to it that in the process he does not become a monster.”

What would Nietzsche say to you Bethany?

DTCC – Unsettled Trades?

Without a conduit to allow the crime to take place, the crime could never have happened.  To work backwards through the undelivered trades or even temporarily projected trades (that eventually get cancelled, but yet leave transaction numbers behind) does not seem like a daunting task for an auditing team to research to find the culprits of Naked Short Selling.  With a career in settlement operations, and a mastery of reconciliation, I would gladly volunteer my services to DTC to investigate this for them if they’d let me through the door.

I wonder if Patrick “Lex Luthor” Byrne is equally as curious as I am about what DTCC’s massive omnibus Principal&Income, Dividend, Payable, Receivable buckets looked like.  You know… the buckets of miscellaneous cash, or funds that are unable to be applied on payments that come in and sit there for years until they are eventually escheated to the state.  Those wires, checks and transfers that come in from every conceivable location like:  paying agents, transfer agents, the broker dealers, the banks, the companies directly, etc…  that come in with anywhere from a perfect description to no description at all, and yet have to be completely reconciled and distributed…  I wonder how all of that excess sits, whether it collects interest, and whether those funds or the interest on them could conceivably be used as an offset for dividend payments on phantom shares?  I could only speculate.

Naked Short Selling vs The US Government

One has to wonder how the entire financial community was able to deny this practices existence.  It is comical to see the captured regulatory agencies scurry to put in place safeguards to protect against something they swore up to 6 months ago didn’t exist.

It has gone so far that the US Treasury is set to make a massive industry change on May 1st.  On the 1st the TPMG (The Treasury Market Practices Group) will put into affect a sizeable charge on failed deliveries of US Treasuries.  Although they may deny this as their main reason for the charge, I will be willing to stand out on a ledge and state that I believe this is a move by the treasury to essentially protect themselves against the naked Short Selling equivalent of US Treasuries.  It is a move to protect the “quality” of the asset, because they can NOT afford to have these securities subject to potential manipulations.  That would rock the foundation of its status as a “flight to quality” and bring about a potential collapse.

Sure they may say this isn’t the case, and that they are just trying to free up liquidity, but the fact is that the broker dealers know that with rates so low, it is cheaper to fail on a delivery, rather then pay the cost of borrowing the collateral for the repos they finance themselves with.  (This move by the TPMG could become dangerous as they may actually cause market shortages in the long run?)

Don’t believe me???  Here are their words along with the website to check out the changes that go into effect this week:

“Market participants with large short positions should make deliveries in good faith. Market participants with a particularly large short position in an issue should ensure that they are making a good faith attempt to borrow needed securities in order to make timely delivery of securities. Market participants should avoid the practice of “strategic fails”—that is, the practice of selling short a security in the repo market at or near zero percent with little expectation of being able to obtain the security to make timely delivery.”

www.newyorkfed.org/tmpg.

WOW!!!   This is a pretty amazing about face for the practice of Naked Short Selling that didn’t exist just six months ago!!!

Was it a Crime?  What do we do?

For what Nouriel gets credit in predicting the subprime meltdown, Patrick Byrne should get credit for pointing out the blatant criminal act of Naked Short Selling and the manipulation of the Media, Regulators and Politicians through their financial capture.  Through “deep capture” we lost control of our system.  At the same time, in our pursuit of legal rights, we’ve obfuscated the ability to hold the criminals of these transgressions accountable for their actions, as the loopholes and financial innovations always seem to be able to outpace the ability of society to hold the criminals culpable for what amounts to criminally negligent financial management.

The current net overall credit contraction is not easily calculated since credit creation on the run up was blurred by the fact that unknown amounts of leverage multiplied by unknown amounts of fractional reserves left us so grossly understating inflation during the uphill Bull Run.  That leverage created the appearance of a fictional creation of credit, that ran so hyperinflationary (and yet unstated) that it makes it impossible to calculate how much credit is now contracting in comparison to the fictionally overstated growth that proceeded the downturn.  (I term the understated deflation we are now experiencing: “Evaporflation”)

I do FIRMLY believe that there are MANY corrupt Wall Street offices that directly collude with the press and politicians.  …but at the same time, I believe a great many of these accused media conspirators are truly just the “pawns” that Deep Capture has sometimes refers to them as.  It is my belief, as an outsider looking in, that many media types have fallen victim to pier pressure, manipulation and various other forms of “capture” where they don’t even realize are essentially shills for Wall St.  I thought Bethany McLean was a prime example of being a pawn, but after reading Deep Capture, and seeing some of  Bethany’s correspondence with the Wall Street’s players, I came to doubt her credibility from this day forward.  …and also doubt the credibility of any publication that would be willing to give her a soap box to stand on.

Their lack of reporting the news, but rather regurgitating it, then becomes a question of motive.   …and that motive in many cases may or may not be as ominous as believed.  It’s once again my belief that many of these media pawns have taken the easy road through the modern day way of life that promotes approval of indolence!  Nobody wants to really have to work for something when an acceptable version can be handed to them.  “Money for nothing and your chicks for free!”  …and this has become acceptable because as a public, we are too lazy, under-educated and indifferent to ever expect, let alone demand more.  …of course, until the losses roll in and hit our pockets.

In the public’s defense, financial innovations, Quant Analysis, conspiracies, and etc… are so mind numbingly complex, that it truly does take a very bright collective to connect the dots!  It is equally as hard for the media to do this…   but that’s what we mistakenly thought they were there to do!!!   That’s “investigative journalism” folks.

Where is Superman?

When it comes to the economy, and ultimately how we are able to finance modern day lives/lifestyles, everyone is looking around for somebody that has the answers.  Everyone is looking around for someone they can trust!  We’re looking for Superman with a finance degree!  Unfortunately, the Son of Jor El is not here, and if he was, he certainly does not work at the Daily Planet, or any other news publication it would seem!

So we now meet at this crossroad, where “Trust” and “Answers” meet the masses desire for knowledge on the subjects that will shape our lives.  …and that crossroad’s location is:  The MEDIA!  (Or at least that’s where it was perceived to have been met, for so long)  For these answers we seek, we depend on our social media through TV, internet, or publication, to provide us with “THEIR interpretation” of what our political and financial leaders are saying or what they mean/imply.  “THEIR spin” will likely influence the greatest number of people since the complexity of our state of affairs has grown far to complex for the layman to jump right into.  The media have become society’s educators in the world of finance and its recent evolution.

In the last year, the free fall of the worldwide economy has played its downward spiral out on prime time TV.  Once the losses hit home, from Smallville to Metropolis, the public finally awoke to subjects like finance and economics, which they chose to ignore for most of their lives.  Like the stars of a new blockbuster movie or prime time TV series, the faces and names of this economic crisis have become household names.  No longer was Britney, Brangelina or Arod the most “important” thing you read on the internet.  All of a sudden names like:  Greenspan, Bernake, Geithner, Paulson, Summers and Volkner became socially relevant.  …and names like Cox, Lareah, Crammer, Spitzer, Madoff, Stanford, Wagoneer, Nardelli, Blakenfield meant a WHOLE OTHER THING!  (They were like human Kryptonite!)

You and I now all see this has taken place…  but there seems to be nothing we can do because “legally” there’s nothing wrong with what’s been done.  It’s a macro loophole that society was both willingly and unwillingly taking part in.

Why?  It’s because “they” are still in control!!!  “They” know you’re mad, but they know you’re not as coordinated and connected as “they” are.  …and because of that, “they” know it has allowed them to get away with what “they” have, and continue to get away with it.  Even if it was 99% of the US population that was after them, “they” know that that means 297,000,000 individual little squeaky voices were voicing their complaints, but it would go nowhere because those 297million would never get the strength or coordination they needed to take back control of this country that belongs to them!  Instead “they” know their art of deception well.  They know how to manipulate you!  They know how to mock the people who attempt to coordinate the masses.  …and most of all they rely on your indifference and ignorance to knowing or caring about their power grab.

This has been allowed to happen due to the viral nature of the internet.  Just a few short years ago, the manipulators and criminals whom have caused a great deal of our economic free fall had essentially taken over the media.  The publicity they wanted you to know is what you saw.

…but I believe evolution is on our side as the internet continues to develop beyond its originally intended purpose.  That evolution will be a revolution that spreads in the same viral nature that helped these miscreants spread their financial disease.  This viral storm of truth and justice has been made possible by the bloggers of the world, and the websites like Deep Capture where we can expose the criminals for what they are.  It is “We the people” that will once again take back control of this country.  We are Superman!

Now it’s time for you to do your part…  Spread the word!!!

All the best,

Clark Kent.  (a.k.a.  Miss America – Rich Hartmann)

p.s.  Isn’t it ironic that an illegal short selling scheme get “Byrned” by a guy whose company’s named is “over” “stock”.  Maybe the criminal brokers thought there was supposed to be an oversupply of Overstock shares???  …and maybe they could’ve gotten those shares from overstock at a discount???

p.p.s.  In speaking with both Patrick “Lex Luthor” Byrne and Nouriel “Dr Doom” Roubini, one of the first things I asked each man was:  Do you feel vindicated?  In both cases, they both answered similarly and sincerely echoing a common theme.  That theme being:  They weren’t doing this for praise.  They were trying to educate the public to best help the greater good.  …and now knowing what we know, it is time to work on fixed these problems.  I have a lot of respect for both men, and am glad they have the foresight, courage and leadership to stand up and say the things they do!

19 Responses to "Where is Superman? Is he “Deep Captured”?"

  1. Guest   May 1, 2009 at 11:31 am

    Until suburbia becomes unemployed, nothing will be done. You need 50% unemployment–nothing less will do.John Ryskamp

  2. Anonymous   May 1, 2009 at 11:58 am

    Here are some quotes from Patrick Byrne during a conference call. Not making this up!!”And lastly, the man I’ve identified here as the Sith Lord of this stuff I just say, you know who you are and I hope that this is worth it, because if the feds catch you again, this time they’re going to bury you under the prison. And I’m going to enjoy helping.””And here’s the funny part. As this went on I started realizing that there was actually some more orchestration here being provided, by what I’m calling here is the Sith Lord or the mastermind. Now, can I tell you who that designated bottom feeder was who was supposed to end up with our company? Can I tell you? I can. But I’m not going to today. The Sith Lord is, can I tell you who that is? Well, I could tell you it’s a name that everybody on the phone, every single person on the phone would recognize this person’s name. He’s one of the master criminals from the 1980s, and he’s back in business. But I’m not going to. I’ll just call him the master mind today.”

  3. zeus_was_here   May 1, 2009 at 12:02 pm

    700 BILLION DOLLAR BAILOUT, CMKX/CMKM SCANDAL.CMKX-CMKM- At the time of cmkm’s revocation, CMKM had 703,518,875,000 shares of common stock validly issued and outstanding.Then a 700 billion dollar bailout.My Fellow Americans and Global Investment Community.The case of the greatest “counterfeit shares.” fraud in the UNITED STATES is in my opinion CMKX.CMKX DIAMONDS, THE LARGEST NAKED SHORTED STOCK IN THE HISTORY OF THE UNITED STATES/WORLD” Trillions of stock shares traded and changed hands UNTIL CMKX revoked itself and had every stock holder pull stock certifcates out of brokerages out of street name and into Investors name to safely hold in their possesion. CMKX is also the LARGEST STOCK CERTIFICATE PULL IN THE HISTORY OF THE UNITED STATES”I Hope the the SEC did not create a regulational rule during this period the above action was commited to absolve them from liability of cmkx “counterfeit shares.” from this company or any other company that used this tactic to steal from all markets. This naked shorting fraud rule be passed without a second to lose.Naked shorts in the United States: “counterfeit shares.”Naked short selling is a case of short selling the shares without first arranging a borrow. The Securities Exchange Act of 1934 stipulates a settlement period up to three business days before a stock needs to be delivered, generally referred to as “T+3 delivery”.If the stock is illiquid or simply has a small number of outstanding shares, finding the borrow can be difficult to arrange. In these cases the trader normally arranges for the borrow before making the trade, to ensure delivery. In the case when a borrow cannot be arranged within that time period and the shares cannot be given to the buyer, the trade is considered to have “failed to deliver”. The SEC states that “Naked short selling is not necessarily a violation of the federal securities laws or the Commission’s rules,” and clarifies that in some circumstances, it can contribute to market liquidity.Naked shorting to drive down share prices violates US law. In recent years, a number of companies have been accused of using naked shorts in order to make profits at the expense of share prices. To do this, the trader simply enters a naked short with no intention of ever delivering the shares. A large enough short sale could cause the price to fall, as is the case with any stock being sold, so as long as the trade is large enough to move the share price, the short is likely to be profitable. Normally this would be risky if the price did move back up for other reasons, the trader would be driving the price up with every purchase, a condition known as a “short squeeze”. But as long as the buyer turns around and shorts it back into the market, the price continues dropping, making the trades profitable even though no one actually holds any of the shares.”Legal” naked shorting would normally be invisible in a liquid market, as long as the short sell is eventually delivered to the buyer. However, if the covers are impossible to find, the trades fail. A sudden rise in number of fail reports will alert the SEC that something irregular is going on. In some recent cases, it was claimed that the daily activity was larger than all of the available shares, which would normally be unlikely.The North American Securities Administrators Association (NASAA) held a conference on naked short selling in November 2005. An official of the New York Stock Exchange stated that NYSE had found no evidence of widespread naked short selling, and alleged “fear mongering that there’s this rampant naked shorting that’s gone unregulated.” Cameron Funkhouser, NASD senior vice president of market regulations, noted that although companies have alleged stock manipulation through the Berlin stock exchange, the NASD has seen not one instance of naked short selling on the Berlin stock exchange”. Ralph Lambiase, head of the Connecticut Securities Agency and the NASAA, declared his disappointment at how the industry was handling the issue as a whole.A report issued in early 2006 found no evidence of naked short selling in US markets, despite allegations from many companies. The SEC’s short selling FAQ also cites common misconceptions about the practice, such as the belief that naked shorting causes “phantom” shares to enter the market, as one source of confusion over the practice’s market effect. Naked short selling, the SEC said, would not increase a company’s shares outstanding shares nor result in “counterfeit shares.”Statistics on failures to deliver securities are sometimes used as evidence of naked short selling in specific stocks. However, the U.S. Securities and Exchange Commission stated in January 2008 that “fails-to-deliver can occur for a number of reasons on both long and short sales. Therefore, fails-to-deliver are not necessarily the result of short selling, and are not evidence of abusive short selling or ‘naked’ short selling.”Current legal naked shorting rules allow brokerages to make large profits doing “bona-fide market making” while stock markets are falling. The market maker exemption to the rules governing the practice is intended to allow market makers to naked short sell on a very temporary basis, in order to increase liquidity and stabilize markets.However, Robert J. Shapiro, former undersecretary of commerce for economic affairs, has claimed that naked short selling has cost investors $100 billion and driven 1,000 companies into the ground.The Depository Trust and Clearing Corporation has been criticized for its approach to naked short selling. DTCC has been sued with regard to its alleged participation in naked short selling, and the issue of DTCC’s possible involvement has been taken up by Senator Robert Bennett and discussed by the NASAA and in articles — disagreed with by DTCC — in the Wall Street Journal and Euromoney Magazine.While there is no dispute that illegal naked shorting happens, there is a fight as to the extent to which DTCC is responsible. Some blame DTCC as the keeper of the system where it happens, and say DTCC turns a blind eye to the problem. DTCC says naked shorting is not widespread enough to be a major concern. “We’re not saying there is no problem, but to suggest the sky is falling might be a bit overdone,” DTCC’s chief spokesman Stuart Goldstein said. DTCC General Counsel Larry Thompson calls the claims “pure invention.” The SEC, however, views naked shorting as a serious enough matter to have made two separate efforts to restrict the practice. And in July 2007, Senator Bennett suggested on the U.S. Senate floor that the allegations involving DTCC and naked short selling are “serious enough” that there should be a hearing on them with DTCC officials by the Senate Banking Committee. The committee’s Chairman, Senator Christopher Dodd, indicated he was willing to hold such a hearing. The North American Securities Administrators Association, representing state stock regulators, filed a brief saying that if the claims were correct, its shareholders “have been the victims of fraud and manipulation at the hands of the very entities that should be serving their interest.”Critics also contend DTCC has been too secretive with information about where naked shorting is taking place. In 2007, WayPoint Biomedical sued DTCC for DTCC’s refusal to comply with a subpoena request for documents Waypoint needs to track trades in the company’s shares. Ten suits concerning naked short-selling filed against the DTCC were withdrawn or dismissed by May 2005.A suit by Electronic Trading Group, naming major Wall Street brokerages, was filed in April 2006 and dismissed in December 2007.Two separate lawsuits, filed in 2006 and 2007 by NovaStar Financial, Inc. shareholders and Overstock.com, named as defendants ten Wall Street prime brokers. They claimed a scheme to manipulate the companies’ stock by allowing naked short selling. A motion to dismiss the Overstock suit was denied in July 2007.Why has everyone tried to COVER UP NAKED SHORTING, is it because all the Wall Street banks have naked shorts in Level 3, and hidden in derivatives where there are Trillions of fake shares?The illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock, or determine that it can be borrowed, before they sell it short. But due to various loopholes in the rules and discrepancies between paper and electronic trading systems, naked shorting continues to happen.Naked shorting is illegal because it allows manipulators a chance to force stock prices down without regard for normal stock supply/demand patterns.This Rule must be passed and not covered up. As it looks today on Wall street the word is out on naked shorting and must be stopped , and all who profited from stealing trillions be put in jail.Thank you.

  4. Peter   May 1, 2009 at 12:03 pm

    CMKX LARGEST NAKED SHORT IS HISTORYOF THE WORLD!!!!The SEC, just two years ago,denied that Naked Short Selling ever existed. The dismal state of economy is a direct result of the ramifications on NSS. Robert Mahue was brought in by a small diamond exploration company named CMKX to expose this illegal activity.CMKX WENT THROUGH THE LARGEST NAKED SHORT IN THE HISTORY OF THE U.S. Nearly 7 TRILLION Naked Short Shares were sold. Robert Mahue squeezed the Brokers to come up with Billions of dollars to cover these illegal sales. I am a stock holder in CMKX. The SEC is aware of a huge trust that Mr.Mahue set up to compensate CMKX share holders because of NSS. The SEC and or the government are holding up the distribution of these funds. The money is sitting, waiting to be sent out to damaged share holders. The SEC has the ability to release these funds………….but are not doing so.CMKX DIAMONDS, THE LARGEST NAKED SHORTED STOCK IN THE HISTORY OF THE UNITED STATES/WORLD” Trillions of stock shares traded and changed hands UNTIL CMKX revoked itself and had every stock holder pull stock certifcates out of brokerages out of street name and into Investors name to safely hold in their possesion. CMKX is also the LARGEST STOCK CERTIFICATE PULL IN THE HISTORY OF THE UNITED STATES”I Hope the the SEC did not create a regulational rule during this period the above action was commited to absolve them from liability of cmkx “counterfeit shares.” from this compnay or anyother company that used this tactic to steal from all markets. This naked shorting fraud rule be passed without a second to loseI want the people responsible to go to jail and to be fined. Naked Short Sharing has ruined Hundreds if not Thousands of small upstart companies in America and is responsible for the Market Disarray as we see it happening before our eyes. I want the DTCC, the SEC and Congress and whomever else was involved in letting this go unenforced to be held LIABLE. I want JUSTICE for the 40,000 shareholders of this stock.

  5. Guest   May 1, 2009 at 3:29 pm

    Byrne is correct. The naked shorting is destroying the economies of all countries. The SEC doesn’t do anything about it.Byrne knows about naked shorting firsthand; his company fell victim to the practice.Gary Weiss criticizes Byrne from a DTCC computer. Imagine that.

  6. tej   May 1, 2009 at 3:30 pm

    As sad as the CMKX story is, another company suffereda similiar fate.That company is USXP.Richard Altomare was the original whistleblower of the Naked Shorting scandel. USXP won $700,000,000.00against the Naked Shorters by a jury of our peers. If the regular ‘Joe’ can undersand this criminal dynamic, why can’t the SEC or the DOJ? The answer lies in what Dr. Patrick Byrne has so eloquentle stated, “DEEP CAPTURE”.As Richard Altomare pressed his case for assistance from the SEC to reign in the criminals who continued to Naked Short the company shares relentlessly,the SEC shut the company down, sold the subsidiaries for pennies, and as a final insult, incarcerated the CEO in solitary confinement. Can you say “Russian Gulag”.60,000 shareholders were screwed out of their investment so a few criminals could buy BMW’s for their teenagers.You might ask, “where were the politicians” our supposed representatives, who are suppose to look outfor us. Sorry to say, a large majority of politicians are also ‘captured’ by the same entities who are gaming the market, again, so they can spend a $1,000,000,000.00 on a bathroom remodel. These politicians bellied up to the cash bar, sold their collective souls, for a fist full of dollars, and sold us down the river. So much for representation.I guess when the sheeple of the America stop watchingDancing with the Stars and Americam Idol, look deeply into the reason their 401K is 60% lighter and the value of their real estate halved, will they get it. Yes, we’ve been royally screwed by the same people we elected and their friends with the bulging wallets………wallets filled with your money.

  7. Ben   May 1, 2009 at 3:53 pm

    Great article … the political and public corruption going on is stunning and both the current and previous administrations just let it keep rolling along. I couldn’t agree more with your conclusions. The (Captured) SEC is so corrupt and/or inept that they just watch as the investing public is pillaged. A great example is the 4/28/09 trading in DNDN … the stock dropped from over $24 to under $8 in less the 2 minutes with almost 3 million shares traded before trading was halted (the next day it resumed trading in the Mid $20’s). Can criminal manipulation be anymore obvious (especially if you know the DNDN background story)!!! Yet, it was just another day at the office for the corrupt Wall Street financial community, transferring hundred of millions of dollars to there pockets from the investing public in less the 2 minute. What are regulatory doing … nothing and in the long run the only consequence of their “investigation” will probably be a fine equivalent to less then 1% of the theft … at least if we base our estimate on past SEC behavior.

  8. george harter   May 1, 2009 at 9:38 pm

    I believe the demise of the “Financial Industry” would serve the world well. There is nothing wrong with traditional banking, or the commodities markets (if watched closely).The “Financial Industry” had busily created labyrinths inside labyrinths, ignoring, or simply breaking rules, stealing as much as possible. Yes, they will keep most of it. Yes, most of them will never be touched.We can not regulate this theft game, the criminals will always outsmart the regulators (crime pays better!!!) And at worst the lawyers and court system will bounce the ball in the air and settle for 10 cents on the dollar and no conviction.When outright theft, unquenchable greed and arrogance become accepted and acceptable in society, it isn’t surprising to me that we have these very successful criminal conspiracies. Very simply this is a moral failure in our society. Somehow we are all a part of this decadence, and in one sense deserve what is happening to our country. Just rewards.George HarterBaghdadontheHudson

  9. Guest   May 2, 2009 at 3:39 pm

    Mr Ellsion Richardsonhttp://www.businessweek.com/magazine/content/09_19/b4130017095980.htmMay 2, 2009 7:53 PM GMTCMKM DIAMONDS, INC. suffered THE LARGEST NAKED SHORT IN HISTORY. Subject: File No. S7-08-08 From: A. Clifton Hodges, Esq. Affiliation: Attorney March 27, 2008 http://www.sec.gov/comments/s7-08-08/s70808-151.htm To The SEC Commission and Financial Industry at Large: Naked shorts in the United States = ⿿counterfeit shares.⿿ The case of CMKX represents the greatest ⿿counterfeit shares⿿ fraud in the UNITED STATES. CMKM DIAMONDS, INC. suffered THE LARGEST NAKED SHORT IN HISTORY. Trillions of stock shares traded and changed hands UNTIL CMKX revoked itself and had every stock holder pull physical stock certificates out of brokerages, and out of street name, to trap those whom had committed fraud. CMKX is also the LARGEST STOCK CERTIFICATE PULL IN THE HISTORY OF THE UNITED STATES⿿ Naked short selling is a case of short selling the shares without first arranging a borrow. .naked short selling has cost investors $100 billion and driven 1,000 companies into the ground.

  10. Guest   May 3, 2009 at 5:33 pm

    Hello MA“What would Nietzsche say to you Bethany?”Look in the Mirror!!?“NO ONE SAW THIS COMING” pisses me off also!… but rather a community of intellectuals who knew how to game the system. …and their checks and balances (the regulators, the press, the politicians) either stepped aside, didn’t understand what was going on (which meant they were UNDER QUALIFIED to perform their duties!!!) or were compliant in aiding its success.”Unfortunately when it comes to politicians they have name recognition that will enable them to continue getting re-elected. My point is, our culture sucks, marketing products to the masses, be it a sham wow or a politician seems so…I have resigned to go to my grave knowing these crooks will always exist, yet hope their will be consequences forthcoming for these villains.“we are too lazy, under-educated and indifferent to ever expect, let alone demand more”,Indeed! However even after many friends and family that took or ignored my warnings/advice over a year ago, still watch fox news and now blame Obama for job losses. This even after I told them early last year the market was going down, and then job losses would come and that the next president would likely be a one termer because dye has been cast etc…“The media have become society’s educators in the world of finance and its recent evolution.”Yes! And this burns my ass more than most anything else. Perhaps you can look up some facts and history on the net regarding “Cults”, even check out Wikipedia for “the list” that was created in the 70 by the US government. Probably inspired by Jim Jones. Tell me if Fox News does not come to mind (well it will know). I will not be surprised if sometime soon, an employee (or ex-employee) brings to light the preplanned endeavors to create a following, like that which has been documented in the search I mentioned.If interested Go here http://en.wikipedia.org/wiki/Cult_checklistSee Information Control and Thought ControlSide note: Remember the song cult of personality. http://www.youtube.com/watch?v=RZ5SVDYBNrYWe are Superman! I do wish the masses were aware so we could be superman as there is no new continent to conquer.I hope to make up for the lack of interest I am loosing in my CDs so I can continue helping some of those that are completely clueless. I do appreciate your sharing knowledge which helps me in that endeavor.Thanks for sharing your knowledge and for all the time and energy you put into this post, and for giving Professor Roubini the credit he deserves. Your outrage brings me some comfort knowing others are outraged and trying to make a difference.Please excuse the flow of my writing as I am a little scatter brained right now, my blood is a bit too hot and brain frustrated with reality.hlowe

  11. PhilT   May 4, 2009 at 12:42 pm

    MA -If Keith Olbermann ever needs a stand-in for the Special Comment segment, I hope you get the nod.Best…

  12. FEDup   May 4, 2009 at 6:18 pm

    Absolutely superb piece of writing and putting the pieces of the puzzle together! Our society keeps producing PHDs in Deception, Greed and Immorality creating evermore sinister and clandestine ways to defraud each other and the American people. The answers lie in simplifying the system, increased transparency, severe penalties and incorruptible regulators. Again, greatly appreciate your efforts!

  13. Hubbs   May 5, 2009 at 11:18 am

    Whew, it took me a while to pound out this piece, MA.I would like to read an essay from legal experts on why it would be so difficult to get convictions for these fraudsters. They had subjective knowledge what they were doing was effectively stealing by deception.Is there language/statutes that require a certain degree of specificity to the act of stealing through fraud? It seems to me that the intent was to steal and enrich oneself at the expense of another whether the the victim is a single person, group, or whole country.Did the Enron debacle set a new low in “standard of proof” required for conviction?Now, on to to the Deep Capture

    • MA   May 6, 2009 at 8:44 am

      Honestly hubbs… I am guilty of not doing enough research on Enron. I convicted all those guys on the blind faith of the media telling me all I needed to know. Now I’m not saying that any of them are innocent… but I believe there’s a little more then meets the eye.I think they were guilty of doing just about the same thing that the entire financial community did over the last 5 years! Instead of fake off balance sheet entities… Wall St created off balance sheet hedge funds. (their black box helps disguise them, and their “legitimate” “incorporation”, helped legitimize them. All loopholed!!! Through the Caymans or wherever.)MA

  14. Capone   May 5, 2009 at 1:30 pm

    Rich H, Just popped in to see if anyone had replied to the drink idea while I am here in NYC and came across this outline for a book. Ha – it was interesting to read. Not sure the masses can handle the truth to be honest. I have personally invested a lot of energy in being healthy spiritually and physically, balanced and positive of late and it has become too much for me to contemplate the truth of it all on a regular basis. Maybe it is the truth itself that is Super Man. Articles like this show the truth is on the move.I appreciate the note the other day just saw it now : ( I can’t make the game Friday as I am flying out then. I can meet for drinks wed or thurs or lunch any day you call the time and place. I don’t know if you are aware I used to live out here in Tudor City for a year in 2001-2002 so I can navigate easily to the preferred watering hole. (Sorry I did not see your reply sooner)

    • MA   May 5, 2009 at 1:57 pm

      Hey Capone,I thought I gave you my number on the aol email reply.Give me a ring and we can meet up.

      • Capone   May 5, 2009 at 4:58 pm

        Hey Rich, I never got the mail – just sent you another one with my number.

  15. Greg   May 16, 2009 at 5:09 pm

    Another excellent read. I realize there is always shady dealings going down, but I feel sick to my stomach reading this material. I agree with PhilT – you would make a great fill-in for a special comment on Countdown. You write with great conviction.Sorry it took so long to get to reading this.

  16. Tony   May 16, 2009 at 8:59 pm

    MA,Great insight as always. Thanks for sharing.Can you share with us how you would or we should protect our wealth/savings in light of all these manipulation and the potential “evaporflation” ?Thanks again