Bloomberg special on Naked Short Selling

Amr Ibrahim Elgindy lived about a mile from me in Encinitas, a suburb of San Diego. When he got arrested it was like a script out of "24". They had a SWAT helicopter over his house. Swat team guys etc.

His house was ok but was not a mansion. Plus in typical Arab tradition he had a lot tacky crap in his yard.



John
 
Quote from jficquette:

Amr Ibrahim Elgindy lived about a mile from me in Encinitas, a suburb of San Diego. When he got arrested it was like a script out of "24". They had a SWAT helicopter over his house. Swat team guys etc.

His house was ok but was not a mansion. Plus in typical Arab tradition he had a lot tacky crap in his yard.



John
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You should have yelled out....'he's getting away. Shoot him, shoot him."
 
Quote from flytiger:

You should have yelled out....'he's getting away. Shoot him, shoot him."
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I didn't see it happen but a neighbor who had a clear view of his house said that SWAT team guys were repelling out of the Helicopter into his yard. Cops everywhere.

LOL

John
 
Quote from flytiger:
What a joke.

I wonder what happens when Wall St. steals ALL the money? what do they do then? [/B]
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The fed will just print more. Does anyone actually believe that houses that were purchased in 1980 for five hundred thousand dollars and a year ago were worth three million appreciated as a function of some magical added value from the sunshine?

It's because the house that used to cost five hundred thousand rose in price because it takes more dollars to buy it. That means that every day dollars lose value because they print more dollars.
The fed has no aversion to keep printing funny money for our government to buy their way out of debt principles that are depreciating as we speak due to this inflation. Or to bail out industries such as savings and loans or subprime lenders.
A nod is as good as a wink to a blind horse.

This very inflation gives an illusion to your average person. They see their house values go up and feel they are part of the wealth that is America. They hear the numbers and think that a million dollars is still the watermark separating the rich from everyone else. A billion dollars is a foreign sum to anyone other than those stealing it. When hedge funds steal all that they can get away with, the fed will just print out more money and pretend nothing happened. And so it goes.
 
http://www.interactivebrokers.com/e...g=United States&ib_entity=llc&ln=&b=SBA&e=SDX

SDNA. Remember the CEO saying in the Bloomberg piece "they sold to destroy us. I had 70 employees. I have 15 now." Sedona has two SEC civil sanctions in its favor. It has release after release about its software.

In Elgindy's trial, Derrick Cleveland, an associate who turned, told the court that when in doubt, Canada would naked short anything. Here we are, five years later, and IB Canada is "lending" a stock where the Chairman of the board has 43 million shares in certs under his mattress. Are they really getting locates? Why would you want to lend out a twenty, now thirty, cent stock? It makes no sense. Why do it? Because nobody, per the Forbes/GS article, believes the penalties are worthy of thought. Pay them. Fines are small. A cost of doing business. Yesterday, btw, Cox said Naked Shorting is serious and hurts people. Whoopee. Another political hack.

Another question. Do you feel, as I have been told, that some of these Prime Broker types have people hiding risk from the principals? Bryne privately believes 60mm OSTK has been naked shorted. Pick 30mm. What happens if the law comes down? If you tried to buy 30mm OSTK guaranteed delivery, where would you go? Who would survive that?

Politicians who believe giving Wall St. what they ask for good for the country either don't read books, or have pockets full of cash. Wonder which it is?:D :D :D :D :D
 
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Again, who is to say that these companies should not be trading where they are trading? Suppose there weren't any naked short selling - there is no guarantee that the companies would not be trading where they are. In fact, I would say naked short selling should make no difference if there is fundamental value in a company. Buyers will step in when they feel there is value to be had. Could it not be the case that a company such as Overstock just blows hard and its shares deserved to suck? I would say yes. Sure we don't want people to be doing things illegally. I would have liked to get short OSTK but I could never do it through IB because there were no shares to borrow. However, the fact remains that if there were value in a company, it would be discovered. If there is a serious pricing error in a stock, it will eventually be exploited. How can anybody refute this argument?
 
"April 16, 2006 -- One Midwestern financial company, long a target of short-sellers, has deployed an infrequently used tactic to inflict pain on its naysayers: Its management has put in place a strategy that consistently makes money.

The stock of Novastar Financial, a Kansas City, Mo.-based home-equity real estate investment trust, has been a battleground between long-term holders in love with its juicy dividends and short-sellers who suspect that the company has massive default risk with those loans.”"

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I have a difficult time reconciling sanity check arguements. I understand timing the market is difficult, hence the article is a tad old. But I'm sure there are other more recent NFI touts from sanity check.
 
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