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The Stock Room page 40 |
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(Continued from page 39) 5. Have ALL ETF’s trade on a 20-minute delayed basis. Get these instruments of mass destruction back to what they were supposed to do: mimic mutual funds. _______________________________________ apppro’s take for 06/27/2011 @09:00 am EST: Greece – “No pain… No Gain!”
Someone please tell me exactly WHY does all of the pain that the Greek people are being forced to suffer – their pain alone? Fine, it’s their mess and they should have to fix it; but the people that forced Greece to sell bonds at ridiculous interest rates and helped to push Greece off that cliff, need to feel some of that pain too or they won’t learn their lesson either. And you all better understand that all this has been is a bunch of spoiled children being overly punished by their parents. If this happened here in New York, the children’s protective service would be all over the parents. Whatever! I know I’m not an economics genius, but how about this: One of Greece’s BIGGEST issue is and will be the enormous interest payments the bond holders have extorted out of the Greeks. Some are as high as 15%. Anyone out there with a credit card paying off their bills using credit at that rate can easily empathize then with what Greece has to deal with. Why not have the IMF or the EU or private bond insurers guarantee ALL Greek bonds through maturity BUT the interest rate must be lowered to just above prime… say 2.5%. No lower rate—no guarantee! Also, no lower rate signifies that the bond holder goes to the top of the nonpayment default list. The Greeks get a much lower payment obligation and the bond prices should go up right away. Win… Win?
Just try something constructive besides that ridiculous “Let It All Fail” insanity! _______________________________________
narrator’s take for 06/25/2011 @ 08:00 am EST: narrator’s website: SiriusNews.com
A quickie from apppro 1st: This story from the narrator is critical to knowing why we are where we are. I have been screaming about this for years, but yet I am still forced to ask, “What have we learned?” However, no matter how spot-on the below story truly is, even the narrator still misses 3 main points: 1. Who advised the SEC on getting rid of the 70 year old ‘uptick rule’ in July ‘07? 2. Who advised FASB to implement ‘mark-to-market’ (the real cause of this entire mess) in October ‘07? 3. Why has the SEC still allowed short ETF’s and the shorting of ETF’s—both of which epitomize legalized naked short-selling? Now to the story.
“Deep Capture Part 3”
After the collapse of Bear Stearns, the CEOs of multiple Wall Street banks complained loudly that manipulative short selling was causing their stocks to go into death spirals. The SEC responded in June, 2008 by issuing an “Emergency Order” banning naked short selling of stock in 19 major financial institutions, including Lehman Brothers and other titans of Wall Street. Stock prices soared in value until August 12, 2008, at which point the SEC lifted its “Emergency Order” under pressure from the hedge fund lobby. On August 13, the manipulative naked short selling resumed and stock prices began to plummet. SEC data shows that “failures to deliver” (resulting from manipulative short selling) occurred in massive volumes from August 13 until September 18 when the SEC was forced to issue a new “Emergency Order” this one banning all short selling. That “Emergency Order” was written in somewhat impenetrable bureaucratic language, but it is worth quoting at length. I will translate after I have quoted it. It said that the SEC had been concerned since July of that year about “artificial price movements based on unfounded rumors regarding the stability of financial institutions and other issuers exacerbated by naked short selling…” The SEC continued: “Recent market conditions have made us concerned that short selling [that is, abusive short selling] in the securities of a wider range of financial institutions may be causing sudden and excessive fluctuations of the prices of such securities in such a manner so as to threaten fair and orderly markets. Given the importance of confidence in our financial markets as a whole, we have become concerned about recent sudden declines [of stock prices].” The SEC explained further what was at stake: “Such price declines can give rise to questions about the underlying financial condition of an issuer [the issuer being the company targeted by abusive short selling], which in turn can create a crisis of confidence, without a fundamental underlying basis. This crisis of confidence can impair liquidity and the ultimate viability of an issuer, with potentially broad market consequences…As a result of these recent developments, the Commission has concluded that [abusive short selling]…could threaten fair and orderly markets.” In other words, the SEC, in its “Emergency Order” of September 2008, described the situation precisely as I have described it. It said that abusive short selling was “impair[ing] liquidity and the ultimate viability” of major financial institutions. That is, abusive short selling had sent stocks into “sudden declines” (read: death spirals), making it impossible for the banks to raise new capital (“liquidity”, in the SEC vernacular), and threatening the banks’ “viability.” In fact, by September 18, some banks, such as Lehman Brothers, had already been made “unviable.” This is to say, they were gone. Since the U.S. banking system had by that time evolved to include leverage of 30:1, and much of that leverage rolled over every 91 days, no bank could survive without access to capital. We at Deep Capture deplore the fact that our nation’s banking system was permitted to leverage up its “borrow short and lend long” business model, but it was what it was. Either way, the question remains: would the banks have survived if it were not for the manipulative short selling? The answer is a definitive “yes.” The SEC made this clear in September 2008, despite having long denied that abusive short selling was a problem. And make no mistake: when the SEC said in its “Emergency Order” that abusive short selling had “threatened fair and orderly markets” and the “viability” of America’s biggest banks, what it really meant was that abusive short selling was collapsing the American financial system. That’s why it was an “Emergency.” And as U.S. Treasury Secretary Henry Paulson made clear at the time, the collapsing financial system was threatening the survival of the nation. As you might recall, Secretary Paulson was moved to utter the word–“apocalypse.” Perhaps the US Treasury Secretary was prone to exaggerations. Who knows? But plenty of people at the time agreed (and with good reason) that the disaster had the potential to wipe out the US financial system. The fear was that the stable and prosperous America we had long known could come to an end. It is thus fairly amazing that the SEC and DOJ, as of June 2011, have yet to prosecute a single person who engaged in that abusive short selling during 2008. Let me state that more clearly. In September 2008 the SEC said, in essence, that manipulative short selling had almost destroyed the United States. And as of June 2011, the SEC and DOJ have yet to charge anyone for it. The Feds have not nailed a single one of the naked short selling brokerages that stand accused (along with their market manipulating clients) of almost wiping out the nation. This is not an exaggeration: The SEC issued an “Emergency Order” because it concluded that criminals had destroyed Lehman Brothers and was about to end the “viability” of many other financial institutions. The criminals, the SEC concluded, had brought the nation to the brink. And since then, the SEC has let every one of those criminals run free. Moreover, judging by its current silence with regards to abusive short selling, the SEC seems inclined to let the criminals (or, say, prospective financial terrorists) do it again. The worst a naked short selling brokerage can expect is a disciplinary action from the Financial Industry Regulatory Authority (FINRA), which is literally owned and operated by the brokerages themselves. Typically, FINRA fines the offending brokerage around $15,000, about the cost of a one trader’s typical night out in Vegas. So who were the criminals? Well, we have begun to understand who they were. They were the jihadi and Mafia-tied clients of the nation’s biggest brokerage, Penson Financial (which violated the SEC’s 2008 “Emergency Order” banning naked short selling, and received from FINRA a fine of around–$15,ooo). And they were the Mafia-tied and jihadi clients of Bernie Madoff’s Mafia-infested brokerage, which covered up the liabilities it accrued as a result of trading that was referred to it (in significant quantities) by Wedbush Morgan (which violated the 2008 “Emergency Order,” and received a FINRA fine of around — $15,000.) As the Feds began to take a closer look at Penson, FINRA leveled a bigger fine, $450,000, for Penson’s failure to implement mechanisms meant to prevent market manipulation and money laundering by terrorists and the Mafia. The SEC apparently concluded that this fine was serious enough punishment and (so far as is publicly known) is conducting no further investigations of Penson. Most of the other brokerages that violated the “Emergency Order” cleared their trades through Penson Financial. One was Lightspeed, the outfit founded by the jihadi and Mafia-tied Omar Amanat. For engaging in activity that helped bring about the near total collapse of the financial system, Lightspeed received a FINRA fine of around–$15,000. Meanwhile, FINRA determined that Terra Nova Financial had allowed a client named Hsu Tung Lee to use a high-frequency algorithmic computer to generate massive volumes of what FINRA called “erroneous” short sales–which were, in fact, naked short sales. That is to say, a high-frequency algorithmic computer was churning out massive volumes of stock that simply did not exist. This deluge of phantom supply was likely not “erroneous”. After all, one can turn off a computer before the volumes it generates reach the level where they are “massive.” Hsu Tung Lee’s massive volumes (ultimately cleared, of course, through Penson Financial) occurred in September 2008, the month when the markets collapsed, taking with them Lehman Brothers and other large financial institutions. Mr. Lee was certainly not the only person pummeling the markets with naked short selling in 2008 (we will meet more), but given what we know so far about the others who were doing so, Mr. Lee’s background seems interesting. I tried to ask Terra Nova about Mr. Lee, but its executives didn’t return my calls. Maybe they were busy orchestrating another coup with some maniacal jihadi, opening a uranium mine with “Specially Designated Global Terrorist” Yasin al-Qadi, or dealing with another Hezbollah-linked Air Condor shipment of precious metals. At any rate, they wouldn’t answer, so all I can do is report what I know, which is that there are many people named Hsu Tung Lee, and most of them are plumbers, architects, and other people in engaged in professions that would seem to have nothing to do with computer-generated high-frequency trading and short selling of phantom shares. As for people with that name who might have access to a high-frequency trading program, I have been able to find only one – a certain Hsu Tung Lee who is also known as Thomas Lee. For a time, this Mr. Lee worked for Refco, the criminal naked short selling outfit that was tied to BAWAG, the Austrian bank whose clients included the Mogilevich organization and people like Roman Abramovich (Vladimir Putin’s right hand man). This was the same BAWAG whose death spiral hedge fund divisions (which naked shorted through Refco) were run by Martin Schlaff and Solomon Obstfeld. Recall that Martin Schlaff, a former KGB asset who worked with Vladimir Putin in East Germany, is a close associate of Muammar Qaddafi and the leaders of Hamas (who were, with Schlaff’s help, laundering money through Refco). Obstfeld, recall, was previously the top trader at Omar Amanat’s Datek Securities. He was later tied to Global Securities, along with the Iranian Assa Corporation, Felix Sater (Russian Mob boss and intelligence asset), Anthony Elgindy (tied to Al Qaeda), Ali Nazerali (hedge fund partner of “Specially Designated Global Terrorist” Yasin al Qadi) , and Yvgeny Dvoskin-Lozin-Kozin-Etc (who, recall from early chapters, was the alleged ring-leader of 10 Russian spies arrested in 2010). Before Refco, Mr. Lee worked for the Depository Trust and Clearing Corporation, the important quasi-regulator responsible for “settling and clearing” trades. In fact, while at the DTCC, Mr. Lee patented a mechanism that was designed specifically to settle and clear short sales. This mechanism of Mr. Lee is among those still used by the DTCC ostensibly to ensure that stock sold short is actually real stock, and not, say, computer-generated “erroneous” short sales of phantom stock that will not be “settled” (that is, “delivered”). Mr. Lee’s mechanism would have been put in place by Diran Kaloustian, then president of the DTC (the subsidiary that merged with NSCC to become DTCC). As an earlier chapter noted, Kaloustian was a business partner of Solomon Obstfeld and a whole cast of other naked short selling characters who were close business associates of Felix Sater, the Russian Mafia boss with ties to the Russian intelligence services and Al Qaeda. To be clear: Mr. Lee’s mechanism was put in place when the DTCC was effectively in the pocket of Russians with ties the Russian government’s intelligence apparatus. As crazy as it sounds that the most important institution on Wall Street was in the pocket of the Russian Mafia, and possibly Russian spies, it is, unfortunately, the truth. If you doubt this, please return to: Chapter 14: How the Russian Mafia Captured the DTCC — and the American Financial System. At any rate, judging by the fact that upwards of two billion shares “failed to deliver” at the DTCC every day in the months leading up to the financial crisis of 2008, it seems that Mr. Lee’s mechanism (among others) did not work. If this is indeed the same Mr. Hsu Tung Lee who was in September of that year using a high-frequency algorithmic computer to generate massive volumes of phantom stock, it is possible that Mr. Lee did not want that stock to be delivered because he wanted to generate fake volume that would drive down prices. There are those who might say it is even possible that Mr. Lee designed his patented DTCC mechanism so as to have flaws that could be exploited at a later opportunity. However, some people have accused Deep Capture of having an overly suspicious and conspiratorial turn of mind, so we will not opine on that possibility. However, we do feel obliged to note that aside from his DTCC patent, Mr. Lee has one other patent. It is for something called “volumetric ultrasound imaging using 2D CMUT arrays.” I do not know what that is, but Mr. Lee invented it with Roman Maev, whose name appears with Mr. Lee’s on the patent. Before going into the volumetric ultrasound business with Mr. Lee (this business is apparently quite profitable), Roman Maev was a military scientist and Soviet government official with duties involving the Soviet Union’s nuclear weapons and ballistic missiles program. In 2008, Mr. Maev was appointed Russia’s Honorary Consul to Canada. At any rate, Mr. Lee’s massive volumes of “erroneously” manipulative short sales at the height of the 2008 financial crisis earned Terra Nova a FINRA fine of around–$15,000. Mr. Lee himself was fined — $0
Now as far as an answer to my question above and what have we learned… well after all this time the answer still seems to be exactly the same:
SQUAT! NADA! ZIP! ABSOLUTELY NOTHING! THE BIG ZERO!
Now, what we allowed a few short-term traders/traitors to do back in 2008/09 we are giving our blessing to do the very same thing, but this time it’s to entire Nations... of which we are one!
_______________________________________ apppro’s take for 06/24/2011 @05:00 pm EST: “A Letter From The Prez”
Look what I got! That was extremely nice of our Prez to send me this long letter that I feel was in response to mine that I sent on 06/06/11—see next page. I’m sure he didn’t write it, but still it was very nice. Please don’t ask what I think about it… you judge for yourself. All I can say is that I wish he would have read my blog 1st, and I keep going back to that famous line from Seinfeld, “Yadda… Yadda… Yadda!” Yeah I know!
June 24, 2011
Dear Friend:
Thank you for writing. Each day, I hear from concerned Americans who are struggling in this economy. Their stories encourage me to work harder to ensure all Americans can find good jobs so they can support their families and communities. Below are just a few of the actions we are taking to help hard-working American families get through these tough economic times: CREATING JOBS AND GROWING OUR ECONOMY My Administration has taken critical steps to accelerate our Nation's economic growth so that we are producing jobs at a faster pace. We have already seen significant growth, and there are good signs for our future, yet they are little comfort to those who are out of work or struggling to keep their home. We are working tirelessly to push our recovery forward and promote economic growth, accountability, and transparency. To follow developments and track local projects, visit www.WhiteHouse.gov/issues/economy and www.Recovery.gov. IMPLEMENTING TOUGH WALL STREET REFORM For too long, Wall Street firms were not held accountable, financial dealings were not transparent, consumers and shareholders were not given enough information and authority to make decisions, and Government did not have the appropriate tools to close down failing financial firms without bailing them out. That is why I went to Wall Street before this crisis hit and called for common-sense reforms to protect Americans and our economy, and that is why I was proud to sign into law the most comprehensive package of financial reforms in decades, including the strongest consumer protections in our Nation's history. Wall Street reform brings greater security to hardworking people on Main Street -- from families looking to buy their first home or send their kids to college; to small businesses, community banks, and credit unions that play by the rules; to shareholders and investors who want to see their companies grow and thrive. By cracking down on abusive and deceptive practices, these reforms ensure that Americans are not unwittingly caught by overdraft fees or unfair rate hikes, that students who take out loans have clear information, and that lenders do not cheat the system. It also gives Americans free access to their credit score if they are denied a loan or insurance -- or given a higher interest rate -- because of that score. Because of these reforms, the American people will never again be asked to foot the bill for the excessive risk-taking of some on Wall Street. There will be no more taxpayer-funded bailouts. By laying a foundation for a stronger, safer financial system that is innovative and competitive, our Nation will reach a more secure and prosperous future. To learn more about how financial reform affects you, please visit: www.FinancialStability.gov. ENDING CREDIT CARD COMPANY ABUSES My Administration is also working to help Americans who have had their credit lines reduced or interest rates increased without clear justification. During my first year in office, I partnered with Congress to pass the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act. This landmark law took effect in February 2010, and promotes greater fairness, transparency, and accountability in credit card practices. It requires companies to inform credit card holders of payment timetables and accrued interest, and it ends retroactive rate hikes and sudden changes to terms and conditions. To read more about CARD and how it affects you, visit WhiteHouse.gov/3XL and www.WhiteHouse.gov/issues/economy. These reforms will have a tangible impact on the ability of American families and businesses to achieve their goals. For information on credit and consumer protections, please visit www.hud.gov/foreclosure or call 1-888-MYMONEY. ASSISTING HOMEOWNERS Many Americans are also struggling to stay in their homes. Access to the American dream continues to be tested by a mortgage crisis that threatens the stability of families, neighborhoods, and our entire economy. While many Americans have received help, far too many are still unable to refinance their mortgages or obtain loan modifications. This crisis has not only hurt home values nationwide, it has also had a dramatic effect on the credit Americans need to purchase cars, pay college tuition, and grow small businesses. For assistance with a home foreclosure or to find a local housing counselor, I encourage you to call your mortgage servicer directly, speak with a housing specialist at 1-888-995-HOPE, or contact the Department of Housing and Urban Development at 1-800-569-4287. You can also visit www.hud.gov/foreclosure and www.MakingHomeAffordable.gov. HELPING STRUGGLING FAMILIES As our economy recovers, we must continue to help those who are losing their jobs and struggling to pay their bills. Every day, I meet with my economic advisors to make sure we are doing all we can to create good jobs and help Americans support their families and pursue the American dream. My Administration is helping Americans return to work by emphasizing job training in industries that cannot be outsourced. Recently laid-off workers receiving unemployment benefits have new opportunities to pursue higher education and job training programs, including easier access to Pell Grants. To encourage job creation in the United States, we are cutting payroll taxes and providing incentives for businesses to invest by allowing them to expense all of their investments in 2011. Available assistance can be found online at go.usa.gov/a53 or www.Opportunity.gov. Together, we can help more Americans find and keep good jobs and enjoy a healthy standard of living. To locate an employment center near you, select your state at: www.dol.gov/dol/location.htm. For information on benefits and opportunities for those out of work, I encourage you to visit: go.usa.gov/a5x. To find career resources, you may call 1-877-872-5627 or visit: www.careeronestop.org. While it will take time to fully repair the damage done by the worst recession in our lifetime, I am confident our Nation will not only recover, but also prosper in the 21st century. For more information on jobs, health benefits, housing assistance, and other public resources call 1-800-FEDINFO or visit: www.usa.gov. Thank you, again, for writing.
Sincerely,
Barack Obama _______________________________________ apppro’s take for 06/23/2011 @09:30 am EST:
“Oil release! We don’t need no sticken’ oil release!”
IEA said to release oil stock. 60 Million barrels released. : Forex News and Commentary by FXDD The world is already awash with oil. What we have are speculators making us all nuts.
Fine they want to release more oil to drive prices down… that’s 1 short-term solution. For a true long-term solution they would have been far better off attacking the speculators head on: STOP THE INSANITY NOW! Revised Tax Rules: 1. Capital gains 5+ years* - 5% tax on capital gains 2. Capital gains 2 > 5 years* - 15% tax on capital gain 3. Capital gains 1 > 2 years* - 35% tax on capital gains 4. Capital gains 6 > 12 months - 45% tax on capital gains 5. Capital gains under <6 months - 55% tax on capital gains 6. Most critical of all — Institute a capital gains tax of 65% on ALL short sales not directly tied to a long buy by a regulated hedge fund. *Anyone whose main source of ‘income’ (retired persons excluded) that comes directly from capital gains, should be taxed at never less than the 1>2 year 35% rate—no matter what the cg term length. The 5 Golden Rules 1. Immediately, reinstate the Up-Tick Rule. 2. Crack down on naked short selling. Require stock certificate #'s when a short sale needs to be covered, including ETF’s. 3. Institute some rules on how the media ’reports’ news in order to prevent rumor-boarding. Not censorship… just sensibility & responsibility. 4. Pass a Wind-Fall Capital Gains Tax of 65% on ALL short sales not directly tied to a long buy by a regulated hedge fund! 5. Have ALL ETF’s trade on a 20-minute delayed basis. Get these instruments of mass destruction back to what they were supposed to do: mimic mutual funds. _______________________________________ apppro’s take for 06/23/2011 @07:30 am EST: Bernanke “Clueless in Seattle”? (Continued on page 41) |
