Overstock CEO Patrick Byrne Carpet Bombs Wall Street & The Media on the Don Harrold Show (Video)

Part #10 — Writers Out To Lunch! Watch this scathing video. "JIM CRAMER'S A CROOK!" SYSTEMIC RISK! COUNTERFEITS IN THE SYSTEM! STOCKPILE FOOD, STORES OUT OF PROVISIONS, SHUTTERING!

Scroll down for updates

*NEW* #11   I AIN'T LEAVIN' TILL THEY THROW ME OUT!
by RoryKearney | August 28, 2008 at 03:16 pm | 215 views | 2 comments
http://www.nowpublic.com/world/i-aint-leavin-till-they-throw-me-out

 Excellent Byrne NSS interviews....now up on YouTube

Part 1: http://www.youtube.com/watch?v=EYuG-O0-WM0

Part 2: http://www.youtube.com/watch?v=peeufezp9ws&feature=user
Overstock.com CEO Patrick Byrne, guest on the Don Harrold Show, Carpet Bombs Wall Street and the Media they Control . He believes we are poised on the precipice of a great black hole, with one foot on the banana peel. We are heading toward a financial meltdown, worthy of stockpiling a few weeks worth of food. Be prepared. If Lehman goes under, which many are betting on, all hell could break loose.

We encourage everybody in the media to get active on covering this story. We encourage everyone to contact their Congressman demanding an investigation into the Depostitory Trust & Clearing Corportation (DTCC). Knowledge is power and the more we know the better and the more often we contact the officials the more people we can have working on the problem. The American people, as well as the rest of the world, need to hear this story since it affects everyone. DeepCapture.com . Patrick called the impending disaster. He readily admits he does not know what is next but he is preparing for all options. Failures to Deliver (aka Naked Shorts, counterfeit shares of stock), massive counterfeits rolling around in the system, destroying our economy, under the blind eye of the Securities and Exchange Commission (SEC), the Depository & Trust Clearing Corporation is allowing counterfeits in the system, and replacing the real shares with worthless paper, while systematically raiding the vaults of the people of the world's money. WAKE UP!

WE NEED A CONGRESSIONAL INVESTIGATION INTO THE DEPOSITORY TRUST AND CLEARING CORPORATION ( DTCC).

THEY MUST START MATCHING EVERY BUY AND SELL ORDER.

When Patrick sneezes, I get the flu. I'm keeping my eye on this story.

Enter the rabbit hole here --------------------> http://www.DeepCapture.com

MEDIA!

STAND UP & COVER THIS STORY!

IT'S YOUR JOB.

PRETTY PLEASE.

Would You Please Pass The Hot Potato.

Coming to a street near you!

* * * * *

Be Careful About Stock Rumors David Meister, Steven F. Gatti and Christopher Lane
Legal Times
August 26, 2008
The sudden downfall of Bear Stearns was apparently a call to arms for stock market regulators. In response, companies had best take steps to ensure their employees are careful not to cross the line when gossiping with Wall Street colleagues about the market.

During the week of March 10, 2008, rumors spread about liquidity problems at Bear Stearns, eroding faith in the company and its ability to meet its financial commitments. Its stock price fell, counterparties were unwilling to make secured funding available on customary terms, and, according to the Securities and Exchange Commission, "a crisis in confidence" occurred.

In the aftermath, some raised questions about whether the rumors about Bear Stearns were true, renewing the debate about how to crack down on market manipulation based on false rumors.

http://www.law.com//ihc/PubArticleFriendlyIHC.jsp?id=1202424050510 jsp

* * * * *

http://www.advancedtrading.com/showArticle.jhtml;jsessionid=ZQNUTSFPJONXWQSNDLOSKH0CJUNN2JVN?articleID=210004122

Muriel Siebert Has a Few Things to Share With Regulators

Aug 14, 2008
URL: http://www.advancedtrading.com/showArticle.jhtml?articleID=210004122

Muriel Siebert needs no introduction. She is a woman who has paved the way for others and has countless "firsts" to her credit: the first woman to own a seat on the New York Stock Exchange; the first woman Superintendent of Banking for New York; the first woman member of the Wings Club, an industry club sponsored by the chairman of several aerospace and airline companies; one of the first members of the Woman's Forum, which is now the International Women's Forum, where she served with the likes of Margaret Thatcher; and the first woman to launch a brokerage firm. She founded discount retail brokerage Muriel Siebert & Co. in 1975.

At 75, Seibert feels somewhat comfortable with women's place on Wall Street, and has now moved on to represent investors' rights. Siebert has testified before Congress on a number of occasions, including after the Enron debacle.

Now she is witnessing what she describes as the worst time in financial services history -- as a result of the culmination of the subprime mess, the housing crisis, market recession and the financial trouble that many financial institutions are facing as a result.

Her passion today is protecting the market from short sellers. Siebert believes there is a lack of market transparency because of the removal of the Uptick Rule, which was lifted in July 2007. [The Uptick Rule said you could not short a stock until there was an uptick in its price, preventing a free-for-all downward spiral of the stock.]

* * * * *

Judd Bagley of AntisocialMedia.com exposes Daniel Loeb, inventor of the bashing boards turd meter.

http://www.deepcapture.com

http://www.deepcapture.com/daniel-loebs-first-amendment-riot/

* * * * *

what you can do

http://www.deepcapture.com/so-you-say-you-want-a-revolution/
So You Say You Want a Revolution? June 19th, 2008 by Patrick Byrne

“Fate often saves the undoomed warrior when his courage endures.” - Beowulf
The list of villains implicated by Deep Capture’s analysis is seemingly endless, but the list of institutions which have failed our nation is not. They can be spoken to. They can be made aware of how you have lost confidence in them. They can be told how much they suck.

That list of institutions begins with the broker-dealers who enable hedge fund crookery in return for profitable prime brokerage business. Then comes the Self-Regulatory Organizations (”SRO’s”) who have direct responsibility for preventing crimes such as this from happening. Then comes the regulators (SEC) charged with supervising the SRO’s. Next comes Congress, which has failed ito provide the SEC proper political oversight. Last, but most importantly, comes the Free Press, our public realm’s ultimate watchdog, which has been licking its crotch instead of doing its job.

If you accept the analysis of DeepCapture, then you should let these groups know what you think of their work. Please be courteous and polite: I have been abrasive enough for all of us. You need only tell them that you are concerned about naked short selling and think they should be doing something about it. You might even abbreviate it by simply sending them emails that say, “DeepCapture.com”. They’ll know what you mean.

* * * * *

Just In Time

Our food is Just In Time (JIT). That means that there is no stockpile or back room full of surplus food in your supermarket. What you see is what you get. When it is gone you have to wait for another shipment.

* * * * *

http://www.regsho.com/

RegSHO.com

SEC Regulation SHO Compliance Tool

* * * * *

Patrick is interviewed by a former writer for Cramer's thestreet.com, who called Jim Cramer his mentor and Herb Greenberg, his friend. Pheww!

Patrick Byrne Video On Fox Biz

"THIS IS NOT ABOUT MY COMPANY.

THIS IS ABOUT MY COUNTRY."
http://www.investorvillage.com/smbd.asp?mb=3532&mn=23023&pt=msg&mid=5425488

* * * * *

The sordid tale of the hedge funds ill conceived plan to destroy Canadian Company Fairfax Financial Holdings (FFH)

Re: Hedge Fund Hit Man Hired by Cohen,Loeb,Sender Says Insurer Bloomberg.com

http://www.bloomberg.com/apps/news?pid=20601084&sid=aaza4TiCAtxE&refer=stocks
* * * * *

http://apnews.myway.com/article/20080826/D92Q653G5.html

FDIC: 117 troubled banks, highest level since 2003

Aug 26, 4:04 PM (ET)

By MARCY GORDON

WASHINGTON (AP) - The number of troubled U.S. banks leaped to the highest level in about five years and bank profits plunged by 86 percent in the second quarter, as slumps in the housing and credit markets continued.

Federal Deposit Insurance Corp. data released Tuesday show 117 banks and thrifts were considered to be in trouble in the second quarter, up from 90 in the prior quarter and the biggest tally since mid-2003.

The FDIC also said that federally-insured banks and savings institutions earned $5 billion in the April-June period, down from $36.8 billion a year earlier. The roughly 8,500 banks and thrifts also set aside a record $50.2 billion to cover losses from soured mortgages and other loans in the second quarter.

"Quite frankly, the results were pretty dismal," FDIC Chairman Sheila Bair said at a news conference, but they were not surprising given the housing slump, a worsening economy, and disruptions in financial and credit markets.

* * * * *

Four Hours, Eight Minutes & 40 Seconds

- THE GREATEST STOCK MARKET MANIA OF ALL TIME -
DATED AUGUST 25, 2008
A SPECIAL REPORT BY ALAN M. NEWMAN, EDITOR
CROSSCURRENTS

This is our 61st report on the ongoing mania since we first published this website on January 15, 1999.

This report is now mostly a compilation of articles that have previously appeared in the Crosscurrents newsletter. Our paid subscription stock market newsletter has only two rationales for its existence; powerful commentary and unique perspectives that cannot be found anywhere else.

excerpt

http://www.cross-currents.net/charts.htm
"Metamorphosis Redux"

It has long been our view that the SEC exists not to serve the public, but to serve the financial industry. Sadly, the SEC has absolutely no handle on the metamorphosis of the U.S. stock market from an arena of investors to a veritable menagerie of traders who believe the capital formation system is meaningless. We have rendered the rationale of investment useless and bankrupt. The mechanical methodologies and short term tactics that rule today's arena ensure that value is no longer a significant factor in the price of securities. Incredibly, even the number of shares issued by a corporation to trade on the exchanges is now in question. Corporate capitalization can no longer be trusted.

The Depository Trust & Clearing Commission (DTCC) is the keeper of the vaults; a private corporation that is actually owned by banks, brokers and dealers. As such, the corporation has little incentive to protect investors but much incentive to protect its owners. We have reason to believe the corporation's clearing operations are suspect. The opacity of the DTCC's business is beyond disturbing. They are responsible for keeping track of all shares owned and shorted and our measures of trading velocity offer evidence that the system is so overloaded by transactions it is likely impossible at any point in time to determine with complete accuracy who owns what. Most importantly, we have reached the point at which the industry must recognize the short sale mechanic that previously served us well, is now broken. While the circumstance that initially catalyzed our critique was the huge number of phantom shares generated by failures to deliver shorted stock that were never legally borrowed, it is now clear that the mathematics of short sales cannot support the wholesale and widespread shorting that occurs in today’s radically metamorphosed stock market. Re failures-to-deliver, if a short sale is not backed by a borrowed share, then no bona fide can possibly be delivered to the buyer on the long side of the sale. How can we possibly assure the buyer that any genuine value has been received? The "share entitlement" placed in the buyer's account is not a real share of stock, nor does it receive real dividends nor does it receive a real vote on corporate matters. Disturbingly, even the delivery of properly shorted and borrowed stock results in a “security entitlement” for at least one participant. The result is at least two “owners” displayed by brokers for each shorted share. The creation of a share "entitlement" is essentially nothing more than an open-ended futures contract. Importantly, listed companies purposely set and limit their capitalization for many reasons, not the least of which is to ensure the possibility of raising additional capital in the future. The ability to raise said capital is lessened with each shorted share.

We believe the continuation of wholesale shorting cannot possibly benefit the public.

* * * * *

Officers of 15 public companies' (including DNDN) joint anti-Naked Short Selling letter to SEC via counsel

http://sec.gov/comments/s7-20-08/s72008-528.pdf

August 21,2008

Mr. Christopher Cox
Chairman
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549

Ms. Kathleen L. Casey Ms. Elisse B. Walter Mr. Luis A. Aguilar Mr. Troy A. Paredes
Commissioner Commissioner Commissioner Commissioner
U.S. Securities and Exchange Commission U.S. Securities and Exchange Commission
100 F Street, NE 100 F Street, NE
Washington, DC 20549 Washington, DC 20549

Strengthening Regulation SHO To Protect All Investors From Naked Short Selling

Dear Chairman Cox and Commissioners Casey, Walter, Aguilar and Paredes:

We are writing on behalf of public companies that strongly support proposals to strengthen rules that protect them from the abusive practice of naked short selling. In recent weeks, we have watched with approval as the Commission has taken important steps to protect some of our nation's largest financial institutions from the devastating impact of market manipulation and naked short selling. The emergency order issued on July 15, 2008, and extended on July 29, 2008, was clearly appropriate in light of recent market turmoil. The consequences of another failure among Wall Street's major banks-due not to lack of capital or liquidity, but to a loss of confidence stemming from illegal trading and rumor mongering-would have been dire. So we commend Chairman Cox and the entire Commission for moving quickly and taking a strong stand on this issue.

Moreover, we applaud the Commission's announced rulemaking intended to provide additional protections against abusive naked short selling in the broader market. As the Commission undertakes this initiative, we wanted to make sure that you have the perspective of public companies-other than the select financial institutions covered by the order-on this issue. In considering the rulemaking, we urge the Commission to incorporate the key elements of the emergency order into Regulation SHO and extend these protections to the securities of all public companies. We believe that doing so could effectively eliminate naked short selling and provide companies and investors alike with much needed relief from this significant threat to the integrity of our capital markets.

To be clear, we are not opposed to legal short selling. Legal short selling adds liquidity to the markets and provides an efficient mechanism for price discovery. However, naked short selling, as you know, is a crime. Naked short selling and failures to deliver (FTDs) adversely affect all public companies. At one time, it could be said that naked short selling presented a problem only for the smallest of public companies. As recent events have shown, any company can have its share price harmed by naked short selling, which generates what are in essence counterfeit shares and drives share price down unfairly, against market factors.

Since January 2005, Regulation SH0 has required that the stock exchanges publish daily a list of companies with FTDs over a specified threshold. Since that time, more than 7,000 unique tickers have appeared on the Threshold List. On March 31, 2008, the mark-to-market value of FTDs was $8.5 billion. Of that amount, $6.1 billion was in Threshold securities. Based on this data, one must conclude that Regulation SHO, as currently in effect, is not working. Indeed, there are many companies that have been on the Threshold List for months and some for years. The thirteen-day limit for delivering shares sold short has obviously failed to secure settlement and seems incapable of being enforced.

In connection with the rulemaking initiative, we believe that the protections of the emergency order should be extended to all public companies. The first element of the order, the pre-borrow requirement, would go far towards limiting naked short selling and the FTDs that can result. The emergency order also requires delivery of all shares sold short by T+3, the normal settlement period, without exceptions. If extended to the securities of all public companies, this "hard delivery" rule would virtually eliminate the ability to engage in naked short selling. Finally, the efficacy of a revised Regulation SHO, as with any rule, will depend on meaningful enforcement muscle. For this reason, we would also recommend that the Commission enhance the mechanisms to enforce Regulation SHO, including rules aimed at holding brokerldealers and prime brokers directly accountable for buy-ins and deliveries.

The U.S. Chamber of Commerce, the American Bankers Association, leading lawyers and academics and "Main Street" corporations, with millions of investors nationwide, have long sought from the Commission the very same protection that was provided the nineteen select institutions covered by the order. The Commission is expected to act evenhandedly to protect all investors from market manipulation and illegal trading and to maintain fair, orderly, and efficient markets for all participants. Therefore, we see no justification for not extending effective protection from naked short selling to all public companies, especially in these turbulent and uncertain times.

As we have seen from recent events, dominos that are smaller than investment banks can set off a chain reaction as destructive as the failure of a large bank, causing fear and great harm to the markets and resulting in damaging losses to innocent investors. Accordingly, we applaud your intended rulemaking in this area to provide additional protections to the broader market. Amending Regulation SHO to incorporate the elements of the emergency order would be a permanent solution to naked short selling and would be an outstanding legacy for this Commission to bestow on the markets.

Thank you for your consideration.
-
The following companies sign this letter to show their support, recognizing that given the breadth of issues and diversity of interests they represent, they may not agree with every point as stated, but wish the Commission to understand how strongly they share the general concerns expressed.

Adobe Systems Incorporated
Karen Cottle
Senior Vice President, General Counsel and Corporate Secretary

AMAG Pharmaceuticals, Inc.
Joseph L Farmer
General Counsel and Senior Vice President of Legal Affairs

American Capital, Ltd.
Samuel A. Flax
Executive Vice President and General Counsel

Calgon Carbon Corporation
Dennis M. Sheedy
Vice President, General Counsel and Secretary

Dendreon Corporation
Rick Hamm
Senior Vice President, Corporate Affairs and General Counsel

Dionex Corporation
Gina Christopher
Senior Corporate Counsel

Ditech Networks, Inc.
William Tamblyn
Chief Financial Officer, Executive Vice President

Endwave Corporation
Brett W. Wallace
Chief Financial Officer and Executive Vice President

EnerNOC, Inc.
David Samuels,
Executive Vice President and Corporate Secretary

Medis Technologies Ltd.
Robert K. Lifton
Chairman and Chief Executive Officer

NetScout Systems, Inc.
David Sommers
Chief Financial Officer and Senior Vice President, General Operations

NVlDlA Corporation
Christine Lillquist
Director Corporate Affairs

Overstock.com, Inc.
Jonathan E. Johnson, Ill
President

Quest Software, Inc.
J. Michael Vaughn
Vice President, General Counsel and Secretary

Sangamo BioSciences, Inc.
H. Ward Wolff
Executive Vice President and Chief Financial Officer

Eric C. Jensen, Esq.
cc: Erik R. Sirri, Director, Division of Trading and Markets
Florence Harmon, Acting Secretary, Office of the Secretary
FIVE PAL0 ALTO SQUARE. 3000 EL CAMINO REAL PAL0 ALTO, CA 94306-2155 T: (650) 843-5000 F: (650) 849-7400 WWW.COOLEY.COM
Eric C.Jensen
(650) 843-5049
ejensen@cooley.com
Regulation SHO Letter

* * * *

I'm beginning to think they didn't just naked short the biotechs into oblivion, they have also been naked short all of tech into the bubble, including the Giants who did not sign the letter, apple (appl) 885 million shares outstanding, lvlt , nividia (nvda) 555 million shares outstanding, (adobe adbe) 530 million shares outstanding, overstock (ostk) 22.8 million outstanding, dendreon (dndn) 93 million shares outstanding (when I bought my first dndn shares there were 30 million shares outstanding. With the artificial price supression through naked short selling manipulation, they have squeezed this little biotech, on the cutting edge of a paradigm shift in the way cancer is treated, http://www.CareToLive.com forcing it to continually issue more shares, at artificially low prices due to naked short selling of counterfeit shares by hedge funds and investment banks, aided and abetted by the market maker and the Depository and Trust Clearing Corporation (DTCC) while they get to cover some of their nakedness, but not enough, as Dendreon has a tremendous amount of counterfeit shares being sold, and the 93 million shares the company has issued has been sold over and over again so many times, and the DTCC does not ever match the buys and sells and just puts dndn on a reg sho list, meaning the buys and sells don't match, and in the meantime men are dying of prostate cancer, and the fda, we believe in collusion with wall street, denied approval. John Fish and Stephen Study Sr. and Richard Ripp died of end stage prostate cancer, with no treatment options, while the FDA, SEC, and DTCC, cleaned up at the gate.

* * * *

I would be negligent if I left out the irresponsibility of the United States Government who have allowed all this on their watch! Nobody wants to tell this story. Where is the press. This is CaptureGate! Everybody has been contacted. Near everybody has been captured. Shame on all of you who are either ignorant or complicit! We urge you to clean up your mess pronto!

* * * * *

excerpts...

Alabama County Prepares for a Possible Bankruptcy Filing BLOOMBERG NEWS Published: August 26, 2008

Officials of Jefferson County in Alabama told their lawyers to prepare a bankruptcy filing if the county was unable to reach an agreement with creditors over how to escape from $3 billion of bonds with soaring interest rates.

Should the county renege on the debt, it would be the largest municipal bond default ever in the United States, outstripping the Washington Public Power Supply System’s $2.25 billion default in 1983 of revenue bonds sold for nuclear plants.

Jefferson County, which includes Alabama’s largest city, Birmingham, has unsuccessfully sought to refinance debt, amassed building a sewer system, which it now says it cannot afford. More than $3 billion of the bonds, including $2.2 billion of so-called auction-rate debt, have interest that resets frequently, a strategy intended to hold down costs. That backfired when the fallout from the credit crisis pushed the county’s rates as high as 10 percent.

The commission set no timetable for a bankruptcy filing and said it was working to avoid that. http://www.nytimes.com/2008/08/27/business/27bama.html?ref=business

* * * * *
Mark Mitchell, Deep Capture: How CNBC Has Responded to Deep Capture http://www.deepcapture.com/how-cnbc-has-responded-to-deep-capture/ August 27th, 2008 by Mark Mitchell

On May 4, we published “The Story of Deep Capture,” which described in 80-pages how certain influential journalists, many connected to CNBC’s Jim Cramer, spent their careers feeding off the biased, negative information of a clique of short-selling hedge fund managers, many of them connected to CNBC’s Jim Cramer. We noted that these same journalists went out of their way to whitewash hedge fund crimes – especially the use of naked short selling to manufacture phantom stock. CNBC has responded to this story as follows.

On May 5, one day after the story’s publication, Jim Cramer went on CNBC to say that he believed naked short selling was a big problem. This was the first time he had ever said such a thing. Nowadays, Cramer regularly rails against short-seller crimes. It is his number one issue. He says that some short-sellers are “diabolical” and seek to destroy public companies for profit. He says that short-sellers “plant” false stories with compliant journalists. He says the SEC doesn’t do anything because it is “captured.” He says he is on a “crusade” to stop illegal naked short selling and save the financial system.

Make of this what you will.

On May 20, CNBC reporter Herb Greenberg (who is a former editor of Cramer’s website, TheStreet.com, and features prominently in our story) participated in an on-air discussion with CNBC’s Joe Kernen (who is not mentioned in our story) and David Faber (who sparked the collapse of Bear Stearns by reporting false information fed to him by a hedge fund manager whom he has “known for 20 years”). None of the CNBC reporters mentioned Deep Capture by name, but it is clear that this discussion constituted their reply to our website’s contents.

Kernen said that Deep Capture reporter Patrick Byrne “is not above blatant lying.” He cited no evidence for this, except to note that Patrick had once said that CNBC reporters stand by the fax machine awaiting information from their hedge fund sources. Faber chimed in that CNBC doesn’t even have a fax machine. Then Herb said, yep, there’s “lots of innuendo, lots of innuendo…saying it’s somewhat journalism…you can try to say anything, calling the New York media the Media Mob because this guy knows this guy knows this guy….”

Actually, we’d reported that Herb is a guy who knows a guy named David Rocker. Herb also knows the guys at a shady “independent” financial research shop called Gradient Analytics. For a while, Herb’s research assistant was working out of Gradient’s offices, and Herb’s former co-editor at TheStreet.com was running a dodgy hedge fund out one of Gradient’s back rooms. At the same time, at least one of Gradient’s managers had acquired fake IDs and multiple aliases to conceal his business dealings.

According to sworn affidavits from former Gradient employees, Rocker, who was then a short-seller and the largest outside investor in TheStreet.com, dictated much of Gradient’s biased ”independent” research, and fed it to Herb, who repeated it verbatim in negative stories. One employee swore under oath that Herb would time his stories (which pummeled stock prices) so that Rocker could maximize his short-selling profits.

Meanwhile, according to a timesheet obtained by Deep Capture, Gradient’s employees were paid an hourly rate by Milberg Weiss, a corrupt law firm. Milberg used to file bogus class-action lawsuits against companies targeted by Herb, Gradient, and their short-selling friends. Herb’s stories and Gradient’s research would cause companies’ stock prices to fall. Within days, Milberg would then file lawsuits blaming the companies for their falling stock prices. For evidence, the lawsuits sometimes cited Herb. For plaintiffs – well, Milberg had to bribe people to get them to be plaintiffs. That’s why Milberg’s top partners are now in prison.

Most of the companies targeted by Herb, Gradient, Milberg and a small group of short-sellers happened to have been victimized by massive levels of illegal naked short selling. SEC data proves this. But Herb has long insisted that he’s uninterested in phantom stock, or that it doesn’t exist. Last winter, when a respected Citigroup analyst referred to naked short selling, Herb accused her of “seeing UFOs.”

In 2006, the SEC launched an investigation into Gradient, and issued subpoenas to Herb, TheStreet.com, Cramer, Rocker, and a Dow Jones reporter named Carol Remond. The investigation was dropped after Cramer vandalized his subpoena live on CNBC and Herb’s media friends said that Patrick Byrne is a liar and the SEC had violated Herb’s freedom of speech.

Those are some of the facts that we reported in our story. We also referred to Sam Antar, a convicted felon who orchestrated a massive fraud at Crazy Eddie’s, the chain of appliance stores known in the 1980s for its commercials: “Our prices are insaaaane!” The Crazy Eddie guy works closely with Gradient Analytics. He is paid by short-sellers to conduct “independent” financial research. This primarily involves going on Internet message boards to heckle and threaten opponents of illegal naked short selling.

According to a recent court case, the Crazy Eddie guy has delivered at least $250,000 in cash to Barry Minkow, a convicted felon who orchestrated a massive, Mafia-financed fraud at the ZZZZ Best carpet cleaning company. Minkow now works out of the Community Bible Church in San Diego, where he is the resident short-seller-financed, “independent” financial-research-producing-criminal-church pastor.

Believe it or not, no respectable investigator has given any credence to the false “independent” research produced by the Crazy Eddie guy or the criminal-carpet cleaner-in-a-church. But Herb liked them. He said so.

Then, in April, Herb opened his own “independent” financial research company. The company’s website says in big letters that it is “bridging financial journalism and forensic analysis,” which is sort of like bridging John Gotti and the judge, but it seems only fair that Herb should profit from the short-sellers who profited from his journalism.

If he hasn’t already, Herb should sell his “independent” research to Whitney Tilson, who is one of his favorite short-selling sources. As we have noted on Deep Capture, Tilson pays the “independent” Crazy Eddie guy and the “independent” ZZZZ Best guy.

Anyway, after “The Story of Deep Capture” came out, Herb went on CNBC to say it was “a lot of innuendo.” He said it was nothing more than “this guy knows this guy knows this guy.”

A minute later, apropos of nothing, Herb began talking about Whitney Tilson. Herb didn’t mention that this Tilson guy knows the Crazy Eddie guy who knows the carpet-cleaning, bag-holding, criminal pastor guy. Herb didn’t mention that Tilson has donated a lot of money to those guys. But Herb did say that Tilson is a “big, big philanthropist.”

That was Herb’s response to our story.

On July 15, the SEC issued subpoenas to a number of Herb’s hedge fund sources and announced an “emergency order” to prevent illegal naked short-selling from crashing the financial system. Herb has not been heard from since. In fact, we haven’t seen much of Herb since June 31, when CNBC dispatched him to the San Diego county fair to report on the hard times that had befallen vendors of deep-fried Twinkies.

Maybe, at last, that was CNBC’s response to Herb.

Of course, if you miss Herb’s surreal journalism, you should ask CNBC to bring him back. You can send your requests to the fax machine in the CNBC newsroom. The number is: 201-735-3200.)

* * * * *

Investor Protection Coalition

http://investorprotectioncoalition.org/FAQ.html

http://www.investorvillage.com/smbd.asp?mb=3532&mn=23483&pt=msg&mid=5490050

Msg: 23483 of 23491 8/27/2008 5:40:45 PM

Author: tommytoyz send pm · add member to favs · ignore · recommend


Recs: 7 My FAQLet me know if you want anything else answered..............I'm just getting started. I've also been redoing the site in general, editing the pages and the categories, etc..........we are moving from "there's a problem" to "here's the solution". So I'm moving the site more in that direction.

* * * * *

I put away some powdered and canned milk, canned tuna, salmon, veggies, bag of rice (I still have my sterno left over from y2k. Hmmnn, batteries and that is all i can do.

* * * * *
Be Prepared: The Motto of the Boy Scouts of America

Excerpted from page 54, Boy Scout Handbook, 11th ed,
(#33105), copyright 1998 by BSA, ISBN 0-8395-3105-2

---

http://www.usscouts.org/advance/boyscout/bsmotto.aspBe Prepared.That's the motto of the Boy Scouts.

"Be prepared for what?" someone once asked Baden-Powell, the founder of Scouting,

"Why, for any old thing." said Baden-Powell.

The training you receive in your troop will help you live up to the Scout motto. When someone has an accident, you are prepared because of your first aid instruction. Because of lifesaving practice, you might be able to save a nonswimmer who has fallen into deep water.

But Baden-Powell wasn't thinking just of being ready for emergencies. His idea was that all Scouts should prepare themselves to become productive citizens and to give happiness to other people. He wanted each Scout to be ready in mind and body for any struggles, and to meet with a strong heart whatever challenges might lie ahead.

Be prepared for life - to live happily and without regret, knowing that you have done your best. That's what the Scout motto means.

* * * * *

How deep is the capture?

Deep. Permeating through every level of our "society". Chuck Schumer, senator from NY, is attending hedge fund dinners where we are served up as the fish. Patrick throws the blame at the feet of the media. "The free press are the white blood cells of the body politic". We have become a nation of anti-investigative journalists. David Faber, wasn't he previously the stooge for Maria Bartiromo and Jim Cramer, In Nick Meir's scathing expose on Jim Cramer after working with him. Cramer had to have it recalled and a chapter changed, ha, probably no way to prove that Nick printed the truth, my monies on Nick anyway, I wouldn't put a dime with Cramer. I loved Don Harrold talking about Jim's revisionist history as Jim slithers in and out of his scruples and sets up the rubes for the kill.

Trading with the Enemy: Seduction and Betrayal on Jim Cramer's Wall Street
http://www.amazon.com/Trading-Enemy-Seduction-Betrayal-Cramers/dp/0060086513

* * * * *

Schumer threw a dinner for the hedgefunds in 2007.

Excerpts

Hedge Funds Not Giving Enough To Politicians, Politicians Surprisingly Determined To Change That

http://www.dealbreaker.com/2007/03/hedge_funds_not_giving_enough.php

Funny how campaign contributions from big money donors are usually presented in the press as a corrupting influence but when it comes to hedge funds and private equity firms, the lack of political involvement is often portrayed as something close to anti-democratic.

But maybe it's just us. Because we can't read Jenny's lede without imaging what this would sound like if you substituted Tony Soprano for Chuck Schumer.

On a cold evening in late January, Senator Charles E. Schumer invited a who’s who of hedge funds to dinner at Bottega del Vino on the Upper East Side of Manhattan. More than $100 billion worth of wealth sat around the table, including Paul Tudor Jones of Tudor Capital; Steven Cohen of SAC Capital; Stanley Druckenmiller of Duquesne Capital; and James Chanos of Kynikos Capital, according to a person who was briefed on the dinner.

Mr. Schumer, the New York Democrat, had some simple advice for the billionaires in his midst: If you want Washington to work with you, you had better work better with one another. (Mr. Schumer and the hedge fund managers declined to comment).

Then there's also the quote Tim La Pira:

“The small proportion of money they are spending is related to the fact that they are not heavily regulated,” said Tim La Pira, a lobbying researcher at the Center for Responsive Politics. “Heavily regulated industries like banking or oil and gas spend an enormous amount of money because they have a history and legacy of being regulated.”

Now read that paragraph again from the point of view of a lawmaker hoping to raise money from hedge funds for re-election or a lobbyist in search of fees. And now you can stop wondering why we had those hedge funds hearings today.

Big Money Still Learning to Lobby [New York Times]

* * * * *

* * * * *

To enter our $75,000 "Crack the Wall Street Cover-up!" contest read to the bottom of this (very long) story.

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, Deep Capture Reporter

The Story of Deep Capture

NEW! Download the Story of Deep Capture in .pdf format.

By Mark Mitchell, with reporting by the Deep Capture Team

Introduction - by Mark Mitchell

I began working on a version of this story in January 2006, while serving as an editor for the Columbia Journalism Review, a publication tasked with upholding the standards of the American media. In November 2006, a hedge fund that was at the center of the scandal I was investigating offered the Columbia Journalism Review a great deal of money. Shortly before CJR accepted the money, I left my job, so I do not know if my editors, whom I believe to be honest people, would have allowed me to persevere. But I have no doubt that the hedge fund’s “beneficence” was aimed at preventing the publication of stories like this one.

And it might well have succeeded if Patrick Byrne had not approached me with an idea. Why not combine forces and spearhead a whole new approach to investigative journalism? Most media content is produced by rumpled journalists (i.e., people like me), working alone under tight constraints. Deep Capture could be something different - a power team circumventing the traditional media and pushing limits to uncover the truth.

When I entered the picture, this team had already established that a small number of law-breaking hedge funds had put the American financial system at risk of collapse. Indeed, the hedge funds are employing the same tactics that contributed to the stock market crash of 1929 and the Great Depression that followed. If you want to understand the current turmoil in our financial markets, you could do no better than to read the material in Deep Capture: The Analysis.

The lengthy (40,000 word) story that follows should help you to understand how - and why — Patrick came to embark on this project. I am the author of the story, and attest to its accuracy, but it benefits substantially from the work of the Deep Capture team: freelance researchers, bloggers, gonzo computer hackers, economists, and even a one-time foreign intelligence agent.

Some mainstream journalists will not like this story. They will perhaps disapprove of our methods or decry the advent of vigilante journalism. But most of all, they will not like this story because it is largely about them - a tale of reporters who seek to be players, but instead become pawns - a tale of prominent journalists who help cover up a massive financial crime while toadying to some of Wall Street’s slimiest operators.

* * * * * * * *

And it all starts when Patrick Byrne gets a phone call from the Easter Bunny. Really, that’s what the guy calls himself - the Easter Bunny - and he talks like the Bee Gees on fast forward, a nasally frantic falsetto, on and on about some kind of conspiracy involving big time Wall Street operators, the Mafia, and a bunch of famous journalists. Somebody’s got to stop these people, the Bunny says, or the American financial system is going to come crashing to its knees. Also, the bad guys might put a bullet between the Easter Bunny’s ears.

* * * * *

Part 1 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up
by RoryKearney | July 11, 2008 at 07:13 am | 6281 views | 33 comments
http://www.nowpublic.com/world/naked-shorts-75-000-cracking-wall-street-cover

Part 2 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up
by RoryKearney | July 18, 2008 at 08:43 am | 523 views | 1 comment
http://www.nowpublic.com/world/part-2-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 3 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by by RoryKearney | July 19, 2008 at 06:32 am |1162 views | 3 comments
http://www.nowpublic.com/world/part-3-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 4 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by RoryKearney | July 23, 2008 at 10:05 am | 550 views | add comment
http://www.nowpublic.com/world/part-4-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 5 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by RoryKearney | July 23, 2008 at 10:05 am |1760 views | add comment
http://www.nowpublic.com/world/part-5-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 6— Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by RoryKearney | July 26, 2008 at 08:03 am | 626 views | 2 comments
http://www.nowpublic.com/world/part-6-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 7— Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by RoryKearney | July 29, 2008 at 08:13 pm | 1719 views | add comment
http://www.nowpublic.com/world/part-7-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 8 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by RoryKearney | July 31, 2008 at 05:05 pm | 374 views | add comment
http://www.nowpublic.com/world/part-8-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 9 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by RoryKearney | August 6, 2008 at 07:56 am | 350 views | add comment
http://www.nowpublic.com/world/part-9-naked-shorts-75-000-cracking-wall-street-cover-redux

I AIN'T LEAVIN' TILL THEY THROW ME OUT!
by RoryKearney | August 28, 2008 at 03:16 pm | 215 views | 2 comments
http://www.nowpublic.com/world/i-aint-leavin-till-they-throw-me-out

Just Say Yes. The FDA Ties That Bind. A Saturday Morning Rant.
by RoryKearney | July 12, 2008 at 08:24 am | 242 views | add comment
http://www.nowpublic.com/health/just-say-yes-fda-ties-bind-saturday-morning-rant

Everything I write is my opinion. If I have made any factual errors, please notify me, and I will correct them.