Full story here. From the story Deep Capture by Mark Mitchell. If only this were a soap opera, I could stand the level of lies, deception and general histrionics this informative and lengthy article brings up. Please read it all at the link above.
“…the Securities and Exchange Commission has published a list of more than 300 companies whose stock has been sold but never delivered in excessive quantities. In other words, a significant fraction of the stock sold in more than 300 companies is phantom stock. If you think you own shares in one of these companies, the chances are that a broker has sold you air to satisfy a crooked hedge fund client. The computer might say that you own stock, but in reality, you do not.
In addition to the 300-plus companies on the SEC’s list, as many as 1,000 companies have already been wiped off the map by illegal short-selling, according to some experts.
Short-sellers’ collusive behavior and dubious tactics might have contributed to the demise in March, 2008, of Bear Stearns, America’s fifth-largest investment bank. The Chairman of the SEC recently told the U.S. Senate that the SEC is investigating precisely this possibility. The consensus among economists is that if the Federal Reserve had not intervened, the fall of Bear Stearns would have triggered the collapse of the American financial system. Similarly collusive ‘bear raids’ contributed to the great crash of 1929.
SEC officials fail to prosecute the criminals even as they suggest that miscreant short-sellers have put the American financial system at morbid risk.
Clearly, this is a scandal of epic proportions.
Which raises the question: Where the hell is our media?”
Me again. “Where is the media?” Answer: they are in bed with the crooks and are providing the suckering and needed distractions in order to pull this scam off. If you needed a reason to hate Jim Cramer (apart from empirical ones) this will do it for you.
The article also suggested that the “cleanup” for such a massive quantity of non-existent stock could run as high as $1 trillion. Gads, I had hoped to avoid concluding that Spam, gold and silver (and possibly toilet paper) were the only things that would preserve humanity, but I’m having trouble burying that nagging doubt.
Mad as hell and can’t take it anymore? Join Shadowtraders and learn to trade the Futures Market.