Short, Naked, Crooked, & in Charge

Continue Reading Here >> http://www.pmc.org/articles.asp?ArticleID=110

* * * * *

Patrick M. Byrne
CEO, Overstock.com &
Journalist, DeepCapture.com (2008 Weblogs Award for "Best Business Blog")

Get thee over to DeepCapture

http://www.DeepCapture.com

* * * * *

Hearings on UBS Bank Secrecy Laws vs Money Laundering and Tax Evasion

http://hsgac.senate.gov/public/index.cfm?Fuseaction=Hearings.Detail&HearingID=01ed16a9-f099-44ca-ae81-0e291a147efc

* * * * *

We have reams of bandwidth and oceans of ink.

No debacle of this proportion is doable without a complicit press.

No way, you say.

Proof positive.

Take 20 seconds and listen for yourself here>> http://www.deepcapture.com/wp-content/uploads/2008/05/sabew-dan1.mp3

* * * * *

As Patrick Byrne aka Hannibal, says on the OSTK InvestorVillage board

http://www.investorvillage.com/smbd.asp?mb=3532&mn=31296&pt=msg&mid=6681849

"The technique is Stalinist: just lie and lie and lie, lie about the lies, lie about the lies about the lies, etc.

Dan is just sore that when he was talking to some other journalists in a small break-out room at a SABEW conference, DeepCapture caught him demonstrating his journalist integrity with this choice little 20 second gem."

* * * * *

A few weeks later, SABEW elects Dave Kansas as its president and Joe Nocera writes a column describing Patrick as a “conspiracy-mongering trash-taking lawsuit-filing chief executive.”

New York Post business editor Dan Colarusso, who was secretly caught on tape a couple of years ago, discussing his approach to dealing with the emergence of pro-market reform bloggers – and Patrick Byrne in particular – raising the very questions I’m raising here now.

When I think about, Patrick Bryne, I mean, we have barrels of ink and stacks of money, and all the resources in the world at our disposal, legal and via our media, to crush them.

* * * * *

Patrick Byrne aka Hannibal on the InvestorVillage OSTK board in reply to one of the miscreant.

http://www.investorvillage.com/smbd.asp?mb=3532&mn=32348&pt=msg&mid=6818535
Re: "It Only Hurts When I Laugh" - for tamoshanter

Hi Tam.  Thanks for the link which allegedly falsified my claim that as of early 2005 it was extremely unclear who in the federal bureaucracy rgulated the DTCC. But guess what: When entered into the Wayback Machine, you know what we learn about your link? That page went live in late 2007.

Sorry. Thanks for playing.

I happen to remember that period in 2007: the DTCC went from telling state regulators that DTCC would not respond to subpoenas because it was federally regulated, and telling federal regulators that they did not have jurisdiction, to claiming that, Yes, DTCC had been regulated by the SEC all along.

Now hear is the funny part: as of late 2008, the SEC was maintaining in close-door meetings that, "Yes, the SEC does regulate the DTCC, but no, we don't have the power to compel them to produce or publish FTD data in a timely fashion. We regulate the DTCC, but cannot compel them."

* * * * *

Don Harrold Interview with Patrick Byrne

http://www.youtube.com/watch?v=EYuG-O0-WM0

* * * * *

More From Deep Capture

Sounds like an objective journalist to me.Then Herb says, “When it comes to naked shorting, it’s not my issue…It doesn’t relate to what I do, what Joe does, what Carol Remond does, even what Cramer does.”

And Joe Nocera says “naked short selling…makes my eyes glaze over…So I asked Patrick Byrne exactly this question…I said, ‘Well why do you…why are you in this naked shorting fight since it’s not really what you are litigating?’ And he said, ‘Well, it’s like supporting education; it’s a good thing to do.”

At this, there is uproarious laughter from the journalists in the room. It should be said that most of the journalists in the room are Herb’s friends. Dave Kansas, formerly of TheStreet.com, is there. So is Dave Evans, the Bloomberg reporter who, along with Herb and Kansas, worked closely with the online short-seller group led by Amr Elgindy, who is now in prison. So these journalists - these creeps who think it is hilarious that Patrick has embraced what he believes to be a good cause - are by no means typical journalists.

They just happen to be the journalists who control the financial media.

“So,” continues Nocera, The New York Times’ top business columnist, “it’s hard to take [Patrick] seriously on that issue when you hear him say something like that. Having said that, you know, I think it probably would be worth somebody’s time to say, Is there something to naked shorting or not? What is naked shorting? What does it mean? What is the problem here? But, you know, life’s too short. I don’t want to do it.”

At this, the journalists in the room laugh even harder.

* * * * *

SABEW | SOCIETY OF AMERICAN BUSINESS EDITORS AND WRITERS, Inc

"The Society of American Business Editors and Writers is a non-profit organization made up of business journalists."
www.sabew.org/

* * * * *

 http://nwe.gu68.com/index.php?article/bb/2009-03-04/5604.html

And the cycle continues.

Of Aguirre’s three requirements, we can state with certainty that in the case of Richard Sauer, the first two are satisfied. It is my opinion that the third requirement has been, as well.

What all this means is not that Richard Sauer is a bad person, for I don’t know a thing about his character. What I do know is that he has spent most of his professional career enabling bad people, first from within a fatally flawed regulatory agency, and later from without.

Mr. Sauer, if you’re reading this, given your recent unemployment following Copper River’s collapse, I sincerely hope you’ll hold out for a job that breaks the cycle of regulatory capture and actually makes the world a better place in the process.

If this article concerns you, and you wish to help, then:

1) email it to a dozen friends;

2) go here for additional suggestions: “So You Say You Want a Revolution?“

* * * * *

ONE MAN'S CREDIT DEFAULT SWAPS ARE ANOTHER MAN'S SUICIDE

 

The couple had been having severe financial problems and had been discussing a suicide pact,” according to a medical examiner's report. “They decided to follow through with their plan.”

That same month, a 55-year-old Del Mar man, despondent about huge financial losses, drove to a quiet stretch of El Camino Real in Rancho Santa Fe and shot himself with a .38-caliber revolver.

“Recently the decedent had been depressed over the economy and poor money management,” the report stated. “He had lost his family's inheritance money after bad real estate planning and stock market investments.”

Suicides related to the economic downturn are a nationwide concern, said Richard Shadick, an adjunct professor of psychology at Pace University in New York who has studied the links between suicide and the recession.

 http://www3.signonsandiego.com/stories/2009/mar/02/1n2mental214548-economic-crisis-pushing-more-peopl/

* * * * *

Good article and dialog:

In defense of securities and derivatives

While recovering from another illness I read an interesting piece on Daily Kos. I originally was writing this up as a response to Billmon's excellent article today, Chocolate Covered Cotton. For the record, he makes some very valid points. The whole system is now burnt, and we the average citizen has to pay for what really is fraud on a massive scale. Saying all this, I have to take issue on the idea on the concept of CDOs, Swaps and the entire idea of securitization of loans being total junk. That isn't to say that whats out there isn't toxic, but I'm looking forward.

The problem was never the product, it was the handling and regulation (or lack of) of these instruments. Derivatives that were traded were not transparent or executed on a clearing mechanism that most other commodities are traded on. The concept of the Credit Default Swap is actually good, yet how it was implemented was not. What we had was the equivalent of State Farm selling insurance it could not back, which in most states is considered fraud. Whether it is CDOs or something else, once more, what you had was T3 all the way for most of these things.

Continue Reading here>>  http://www.economicpopulist.org/?q=content/defense-securities-and-derivatives

* * * * *

Judd Bagley

If you didn't watch Judd's presentation with mini me, take the time to listen to this presentation by one of the masters of the media. We all owe a debt of gratitude to Judd Bagley, of antisocialmedia http://www.antisocialmedia.net,  the quintessential whiz kid.

Here is a link to Judd's latest presentation. >> http://antisocialmedia.net/lecture1/player.html

* * * * *

Ancient Chinese Curse

May you live in interesting times.

* * * * *

More from Deep Capture.

Richard Feynman was not only one of the greatest scientific minds of the 20th century, he was also hilarious, and I encourage you to read his book. I include this Las Alamos story here for the resemblance it bears to our battle over “naked short selling”. I am not claiming to be smarter or more moral than any of you folks. I do believe, however, that you have a problem in your “factory” (the nation’s stock settlement system) of which you are unaware. That problem is the systemic risk created by unsettled trades. Like the U-235 in Feynman’s story, this is dangerous, and from my point of view, it looks like you folks have not paid much attention to the safety question. We of the Market Reform Movement worry about “how much material can come together before there’s an explosion.”
http://www.deepcapture.com/a-message-of-peace-to-wall-street/

Digg
http://digg.com/business_finance/Overstock_s_Patrick_Byrne_Deep_Capture_the_Movie

* * * * *

 http://www.investorvillage.com/smbd.asp?mb=3532&mn=32300&pt=msg&mid=6813730

From Tom Vallarino of the Investor Protection Coalition

1. Securities are negotiable instruments because the states, starting in 1910 with the "Uniform Stock Transfer Act", made them negotiable instruments and they remain so to this day. This means that delivery by  the seller to  the buyer is necessary for the consummation of a securities transaction, as with all negotiable instruments.

2. The Uniform Commercial Code, adopted by all 50 states, regulates the rights of securities, the ownership of securities, the transfer of securities - among a few other things. Not federal law, but the states do this because securities issued by corporations have their genesis in state law.

Securities issued by federal or foreign entities are not regulated this way by the states and the UCC, but are regulated by FED rules and laws and possibly other federal authorities.

3. This means that the DTCC, when in comes to corporate equity securities,  relies most heavily on the UCC for what it does. The closest body of law and regulation of the DTCC are the states. A power the states are failing to exercise. The states have tremendous power they don't eve seem aware of.

4. If the states or the people of the states wanted to, they could start dictating to the DTCC bu amending the UCC. Any one large state alone, like Texas or California, etc,...could force the DTCC to change the way it does business. The UCC could be amended to require disclosure of failed transactions by the DTCC or anybody else for that matter, require investor money be returned,....anything we want really. The DTCC relies on whatever the UCC says and quotes the UCC all over the place for justification for what it does.

Just look at the DTCC talking here to show you what I mean:
DTCC quoting the UCC

As a matter of fact, the DTCC only quotes the UCC for justification for everything it does. Neither the SEC nor the Federal Securities Acts have jurisdiction over the form, ownership, holding or transfer of securities. The SEC and the DTCC can "talk" all they want, but securities depositories, ownership and transfer are reserved for the states to regulate and they do so via the UCC.

It would be very difficult for the US Congress to pass a piece of legislation that would transfer this responsibility from the states to the federal level, because of already existing US Supreme Court rulings saying that securities are creatures of state laws and that these aspects are reserved for the states. So fortunately, we're really stuck with the states being in charge of this aspect of securities. If only the states would wake up to their power.

The FEDS and the Securities Acts are responsible for shaping markets and behavior, not the more basic aspects of the securities themselves. The future fireworks will be at the state level. In fact, the NOVS and OSTK cases against the brokers already shows this.

For all these reasons, that's why on the NIPC website, I call for the states to amend their UCC. That's the angle on how to control the DTCC and ensure total transparency and stop the FTD fraud.
Solutions - NIPC

http://investorprotectioncoalition.org/Risk.html

http://investorprotectioncoalition.org/Who.html

* * * * *

The House that Ruth Madoff Built

Lawyers for Bernard L. Madoff have asked that prosecutors be barred from seizing the New York City apartment of the Madoffs and $62 million in bonds and cash that they say belong to Mr. Madoff’s wife, Ruth, and “are unrelated to the alleged Madoff fraud.”

The request was acknowledged, but not granted, in court documents filed on Monday both by federal prosecutors and the trustee overseeing the liquidation of Mr. Madoff’s estate for the benefit of his former customers.

http://www.nytimes.com/2009/03/03/business/03madoff.html?_r=1&ref=business

* * * * *

President Obama is committed to creating the most open and accessible administration in American history. To send questions, comments, concerns, or well-wishes to the President or his staff, please use the form below:

CONTACT US

http://www.capwiz.com/politicsol/webreturn/?url=http://www.whitehouse.gov

* * * * *

David Patch: March 4th comment letter to SEC

March 4, 2009
Securities and Exchange Commission 100F Street NE Washington, DC
Amendments to Regulation SHO (Interim Final Temporary Rule) SEC Release No 34-58773, File No. S7-30-08

Chairman Schapiro, members of the Commission Staff,

In a previous comment memo dated February 19, 2009 I requested that the Commission insure that all pertinent trade studies pertaining to policy making is presented to the public in a manner consistent with full transparency. My memo specifically identifies studies conducted by the Office of Economic Analysis.
Bloomberg today published an article by Edgar Ortega “Short-Sale Rule Undermined as Bernanke Backs Review” in which the article references a study conducted by the Office of Economic Analysis pertaining to the uptick rule.

 Continue reading here>> http://www.sec.gov/comments/s7-30-08/s73008-80.pdf

* * * * *

Jim DeCosta: “The NSCC – The ‘Forgiving Fraternity’” – March 4, 2009

Ms. Florence Harmon Acting Secretary Securities and Exchange Commission 100 F. Street, NE Washington, DC 20549-9303

Re: Release No. 34-58773; File No. 87-30-08 – Amendment to Regulation SHO Interim Final Temporary Rule

Dear Sirs,

THE NSCC-THE “FORGIVING FRATERNITY”

Our DTCC administered clearance and settlement system utilizes a system involving the legal concept of “novation”. “Novation” means “to create anew”. Originally when a trade is executed in the U.S. the selling party owes the buying party the delivery of the securities it sold. During “novation” the delivery obligation of the selling party is “discharged” and the NSCC as the “central counterparty” (CCP) to the trade “assumes” this delivery obligation owed to the buyer and promises to “execute” on it “eventually” despite the fact that they have the congressional mandate to “promptly settle” all securities transactions.

After “novation” the original selling party now owes the NSCC (and no longer the party it sold the securities to) the delivery of that which it sold and the NSCC then promises as the CCP to forward those securities on to the buyer “eventually”. The difference in the timeframe between the congressionally mandated “prompt settlement” of securities transactions and the NSCC dictated “eventual” delivery of that which was sold serves to facilitate the multi-trillion dollar fraud know as abusive naked short selling or ANSS.

Continue Reading Here >>  http://www.sec.gov/comments/s7-30-08/s73008-82.pdf

* * * * *

On the lighter side

 http://www.thedailyshow.com/video/index.jhtml?videoId=220252&title=cnbc-gives-financial-advice

Jon Stewart confronts Santelli, who takes a bail-out and is a no show, and Jonends up giving us some sound financial advice.
* * * * *

http://www.youtube.com/watch?v=ZWVmlxhk-tU

Jim Cramer Video where he publicly admits to illegally manipulating the stock market.

* * * * *

 http://www.chicagobusiness.com/cgi-bin/article.pl?articleId=31402

Pension bombs going off

By: Paul Merrion March 02, 2009

* * * * *
Who donated millions to Leon Panetta's foundation?
January 10, 2009
Thomas Lifson

Debbie Schlussel raises excellent questions about the source of CIA Director-designate Leon Panetta's source of income for the last several years, the Leon and Sylvia Panetta Institute for Public Policy. According to records, the tax-exempt foundation has raised millions, but the identity of the donors has not been revealed. As Debbie points out, ecen Bill Clinton has disgorged the records of donors to his foundation.

Shouldn't we know who are the donors that have paid the salary of the next CIA Director?

http://www.americanthinker.com/blog/2009/01/who_donated_millions_to_leon_p.html
* * * * *

Letter floating around on the web

Dear IRS,

I am sorry to inform you that I will not be able to pay taxes owed April 15, but all is not lost.

I have paid these taxes: accounts receivable tax, building permit tax, CDL tax, cigarette tax, corporate income tax, dog license tax, federal income tax, unemployment tax, gasoline tax, hunting license tax, fishing license tax, water fowl stamp tax, inheritance tax, inventory tax, liquor tax, luxury tax, medicare tax, city, school and county property tax (up 33 percent last 4 years), real estate tax, social security tax, road usage tax, toll road tax, state and city sales tax, recreational vehicle tax, state franchise tax, state unemployment tax, telephone federal excise tax, telephone federal state and local surcharge tax, telephone minimum usage surcharge tax, telephone state and local tax, utility tax, vehicle license registration tax, capitol gains tax, lease severance tax, oil and gas assessment tax, Colorado property tax, Texas, Colorado, Wyoming, Oklahoma and New Mexico sales tax, and many more that I can’t recall but I have run out of space and money.

When you do not receive my check April 15, just know that it is an honest mistake. Please treat me the same way you treated Congressmen Charles Rangel, Senator Chris Dodd, Congressman Barney Frank, Ron Kirk, and ex-Senator Tom Daschle and, of course, your boss Timothy Geithner. None or minimal penalties and interest.

P.S. I will make at least a partial payment as soon as I get my stimulus check.

Insert name here
* * * * *

VIDEO

Timeline shows Bush, McCain warning Dems of financial and housing crisis; meltdown

 http://www.youtube.com/watch?v=cMnSp4qEXNM&NR=1

* * * * *

ATLANTA — Nearly 10 percent of Georgia state legislators are late filing or paying their state taxes, and state Sen. Robert Brown is apparently among them.

http://www.macon.com/198/story/640079.html

* * * * *

http://www.404.gov/rules/proposed/s72201/wiener1.htm

DTC, a clearing agency registered with the SEC under Section 17A of the Securities Exchange Act of 1934 (15 U.S.C. 78q-1), is a wholly owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC in turn is completely industry-owned. DTCC's shareholders are primarily banks, broker-dealers, and exchanges. DTCC's Board of Directors reflects this financial industry ownership.

The level of DTC's regulation in particular, in both depth and breadth, is extraordinary. Not simply the SEC's oversight. But also that of the Federal Reserve Bank of NY, which is triggered by the fact that DTC is a member of the Federal Reserve System. As well as that of the NY State Banking Department; DTC is both a limited-purpose trust company organized under, and a "banking organization" within the meaning of, the NY Banking Law. To top it off, DTC is a "clearing corporation" within the meaning of the NY UCC, subject to corresponding UCC obligations.

* * * * *

Winston S Churchill: We Shall Fight on the Beaches

http://www.youtube.com/watch?v=MkTw3_PmKtc&feature=related

* * * * *

Wow! Daily Kos Goes DeepCapture.com! Obama Must Be Scared! Shame On You Patrick!

Hahaha!

Jim Cramer Uses CNBC to Manipulate Stocks by TocqueDeville Thu Mar 05, 2009 at 04:56:48 PM PST

I've been waiting for a good time to bring this story to Daily Kos and, since it's CNBC day (or week hopefully), I figured now would be a good time.

By now, everyone should have heard about the ongoing war that CNBC is waging against the Obama administration and its plans revamp the economy. From it's constant anti-Obama propaganda and commentary to its shady PR stunt to manufacture a bogus uprising against Obama's mortgage plan, CNBC has been working overtime as a propaganda front against the Obama agenda.

And now, Jon Stewart has joined in for some good fun. But you haven't seen real fun until you've immersed yourself into the story of Deep Capture.

• TocqueDeville's diary :: ::
• 
  

This rabbit hole involves the thugs surrounding Jim Cramer and some of the top financial "journalists" from the New York Times, WSJ, Fortune magazine and BusinessWeek, top hedge funds, the Mafia, and the DTCC. It also includes "blackmail, smear campaigns, espionage, fraud, harassment, extortion, bribery, rumor-mongering, sabotage, off-shore money laundering, political cronyism, frivolous lawsuits, witness tampering, biased financial research, false identities, bogus credit ratings, bribery, libelous blogs, bad science, forgery, wiretapping, counterfeiting, collusion, lying, cheating, threats and theft."

Continue Reading Here >> http://www.dailykos.com/story/2009/3/5/16720/74815/703/705113

* * * * *

Marc Silver & The Stonethrowers - Take Back Your Heart >> http://www.youtube.com/watch?v=0aqy5-ZmCTI

* * * * *

http://twitter.com/RoryKearney