Thread: Naked shorts and criminal market manipulation

rokid,

That was a fantastic and excellent presentation. This should be required viewing to everyone. Thankyou! Gave you a gold star and rep. for that one.

Show-me,

Thanks. I'm glad you enjoyed it.------Jim

Agree with Show, this was an important post. More gold stars and reps Jim.

Originally Posted by rokid

Patrick Byrne, CEO of Overstock.com, asserts that criminal hedge funds are manipulating the market and destroying companies by flooding the market was phantom stock.

Dont all CEO's blame shorts when their stock prices drop?

Originally Posted by ChemEng

Dont all CEO's blame shorts when their stock prices drop?

ChemEng,

Yes, that seems to be Wall Street's position. In addition, most, if not all, economists think shorting stocks is a good thing because it brings additional information into the market.

However, there is a long tradition of illegal stock manipulation going all the way back to the Amsterdam Stock Exchange bear pools during the late 17th century. It's also interesting that the SEC is trying to prevent naked shorts against Fannie Mae, Freddie Mac, and major investment banks but not taking action to prevent it altogether - since, after all, it's illegal!

I've just started reading a paper Short Selling, Death Spiral Convertibles, and the Profitability of Stock Manipulation by John D. Finnery of Fordham University. It will be interesting if he corroborates Patrick Byrne's thesis.----Jim

Holy Cow, I don't know what to believe. Being a lowly engineer a lot of the economic stuff was a little like being in the tall grass, but I sure got the gist and it is scary and to tell the truth, I believe it, because man is greedy.

What's a person to do.

CB

Originally Posted by rokid

I found this link on the Bogleheads site. I'm not sure what to think. However, if it is true, it is very scary.

Patrick Byrne, CEO of Overstock.com, asserts that criminal hedge funds are manipulating the market and destroying companies by flooding the market was phantom stock. He further asserts that the SEC was doing virtually nothing about it until the Bear Sterns collapse. Finally, he names members of the financial press that are involved in a cover up of these criminal activities.------Jim

http://www.deepcapturethemovie.com/

Just watched this. Very scary. Will the SEC stop FTDs or will it take a total meltdown of the markets to get some actions on these Hedge Funds? It's like the mafia has gone wallstreet. Can it really be that bad. (Yes, I'm going through the stages as I write this).

<shutter>

Hedge Funds have changed the game forever. Like poachers rampaging the tigers and elephants within the jungles of Africa, hedge funds came in and completely crowded the short selling pillage trade after the regulators decided it was safe to take out the uptick rule. If so many hedge funds are legit, then why are so many set up overseas, specifically in the Virgin/Cayman islands?