Short Seller Counterfeiting Alive and Thriving After Bulletin Board Genocide

Short Seller Counterfeiting Alive and Thriving After Bulletin Board Genocide.

 

 

People observing the wholesale slaughter of the Bulletin Board's markets might incorrectly conclude that the short sellers had achieved their objective of destroying all of the companies listed there.

 

They are not only wrong, but wrong in a major way.  The professional short seller manipulators are now attacking the OTC markets, lower priced NYSE and such stocks, and yet more. It has been so profitable for them, they are now taking their short selling expertise not only to new stock in new markets, but to many other places.  Today, their target rich environment includes not only stocks, but bonds, currencies, commodities, futures, options, physicals, forwards, Treasuries and more, including private assets.

 

Having made Billions on the genocide conducted against the NASD/FINRA "Market of the Future" (per their propaganda in 1998), they now seek to take control of all markets and assets.  With the not so tacit endorsement of the SEC and FINRA, brokers and hedge funds domestically and internationally are seeking the right to sell everything, whether they ever actually own it or not.

 

I have spoken with very sophisticated friends, and even they don't understand that the controllers of custody, clearance and settlement have found a great way to collect a continuing river of financial baksheesh providing huge amounts of cash flow they can divert to the health of their personal pocket books without actually doing anything. A "Locate" of a security that might be actually delivered if a buyer demanded it, has been supplanted by an accounting book entry representing such an asset, whether of not it exists.  The numbers accounted for by issuers in their record books as legally issued securities now has no meaning.

 

The capital formation process for equity and debt issuers is decimated.  It won't be re-invented in our lifetime unless a man like Romney, who has actual experience with profiting from stocks being fairly priced, puts a stop to the grotesque manipulations now extant.  I have never known a private equity investor who wanted his investments' shares and debts to be counterfeited wholesale.

 

Many naively hoped that having destroyed the Bulletin Board, the pigs would be satiated.  The facts are just the opposite.  Wasn't it enough that no type of funding was left from institutional sources that wasn't a PIPE format?  Were there ever any PIPES deals that were not shorted, the vast majority before they were even offered, much less closed?  Reports on PIPES reflect this crisis. Rodman was one of the biggest PIPES players, but they stopped doing these deals with minor exceptions many months ago.

 

So many of these things have been said before by many, it now seems that perpetual optimism over-rides common sense.  My last point is of the uselessness of Reg T.  It reportedly bars shorting any security under $5, or accepting any order to buy or sell a security under $1.  I can't remember this rule ever being enforced in the last 20 years.  Stocks owned in cash accounts were never to be loaned.  Forget that today.

 

The NYSE and other senior markets had attacks on their stocks, but they were limited by the Exchange's rules, now a thing of the past. Even the NYSE is not allowed to protect its own listed companies.  Everyone cheered when the SEC and FINRA demanded 3 day settlement with an exception for 10 delivery.  Hoorah!  So what happens now?  Thirteen day settlement if at all, and literally oceans of multi-month and year fails to deliver that overwhelm the supply sides of all securities. 

 

Until someone gets thrown in real jail for life, and I am not talking about Madoff's prison retreat, Butner, then nothing will change. 

 

DOJ has fallen on its ass for these scum.  Not a single banker has been indicted for the abuses of mortgage backed securities, or banking margin requirements.  If they ever are, they settle for some meaningless punishment, with no jail time. Recently, David Kotz said the SEC might never have caught Madoff had he not turned himself in.  And Sir Allen Stanford's Chief Compliance Office was a protege of SEC Chair Mary Schapiro, the former head of the Dallas NASD office. 

 

Enough said. If you are getting "handled", SPEAK UP.  Too few have. 

Bulletin Board Set Up to Fail Before Opened.

Friends,
It has really come home to me that there was an operating logic at work when the Bulletin Board was first created by the SEC and the then NASD (now FINRA) all the way back in 1997. At least 7 to 10 years of planning when into creating the Bulletin Board, for purposes no one could see at the time.  The first visible change was in the 1993 change in the borrow rule for short sales to a required "Locate", a term so nebulous so as to have no meaning.
The decision to create the Bulletin Board automatic trading system market was justified as an attempt to give the best small public companies in the then Pink Sheets better treatment, better access to capital and a true automatic trading system (ATS).
They skimmed off the top 6412 stocks, with an average trading price of $2.47 per share.
It became permanent in 1998 (or 1997 depending on how you look at it), and within 2 years, the attacks on these stocks began.
First were the ludicrous raids on the .Com stocks, followed by a move to use only hedge fund investments via PIPES (Private Investment in Public Equity), followed by the unleashing of unlimited short selling, to naked short selling, and finally, having halved the number of companies left on the Bulletin Board, their stocks were pressured down by supply imbalances to $.04 per share.
What was really going on?  The SEC and FINRA wanted no more companies like Microsoft, Oracle, Cisco, etc., to ever again see the great personal wealth of the era of entrepreneurs that began in the 1960's.
They determined to destroy any capital formation process that wasn't dependent on venture capital, predatory institutional investment, some private equity, etc.
More than 8000 companies would come and go through the Bulletin Board, with only 900 left until this week.
FINRA ordered the sale of the BB marketplace to a certainly blackened firm, Rodman, Renshaw (briefly Direct Tradings Markets Corporation) to act as their liquidator when the 3400 odd companies left alive didn't roll over and play dead on command.
Rodman was nominally brought in to save the BB market, when in fact, their principal role was to act as the designated liquidator for the SEC guided FINRA action.
Rodman Renshaw having completed their tasks, and having removed all their earnings from their shell, last night the NASDAQ halted trading in their successor shares, followed by a BD Withdrawal filing this morning to save face.
So what has been accomplished?  8000 plus companies that might have had some emerge to be major stocks (such as Priceline), are wiped out, almost in their entirety.
No one  can justify raising capital for a small public company with any dependence on arms length conduct by the regulators.
The Great Bulletin Board, the market of the future in 1998, is dead with little fanfare, with the last 1800 companies being slaughtered by not even being allowed to go the OTC Market's newspaper, Non-ATS.
Next time you are out with an official who admits to being either the SEC or FINRA, give them a big kiss from the millions of shareholders in thousands of small companies who have seen billions of dollars in lost opportunity stolen from them to the favor of major industry companies and their lawyers.  A kiss will be appropriate, since their mouths should be in a semi-permanent pucker from the last 14 years from their "conversations" with the beneficiaries of this outright crucifixion of the same companies and investors they were mandated by law and mission statement from the 1934 Act to protect.
In the process, the SEC and FINRA oversaw the theft of 40% of retirement accounts nationally.  For that, they should face national security prosecutions.
I held out hope that someone with some ethics might step forward.  In hindsight, that hope was misplaced.   Our Country is only a step behind politically and legally. 
There is always an accounting.  I can tell you who this will come down on for practical purposes.  They may tear this Country apart, but in the end, they will pay with everything they have stolen.  If there is a God, he won't be on the side of the users.  As a religious friend of mine carefully noted, these scum have more to fear from God than anyone alive today.

Link to New Jerome Corsi Book on Saul Alinsky. Alinksy Wrote "Rules for Radicals".

Mr Bradley of Kaufman Group on ETF Negatives on Capital Formation.

From www.shareintel.com:

ETF’s and the Dangers to Capital Formation, Transcript of Congressional Testimony by Harold Bradley.

http://www.shareintel.com/pdf/Bradley_Testimony.pdf

Why New Growth Companies Aren’t Going Public and Unrecognized Risks of Future Market Disruptions.

http://www.shareintel.com/pdf/ETF_Study.pdf

From the resources link at www.shareintel.com, for your immediate attention.

I invite your attention to this website.

Best, Bud.

Mark Levin Interview on Utopian Fantasies, from Patriot Post

Mark Levin is unmasking the utopian pipe dream…
And boy does he ever with his new, soon-to-be blockbuster book, Ameritopia: The Unmaking of America. Because we got it good like that, our editors at HUMAN EVENTS were able to acquire an advanced copy before Levin’s latest hit bookstores nationwide today. We pored over the pages prior to its release in order to provide you with an in-depth interview with Levin on Ameritopia.

Find out why Mark wrote the book, how it differs from his last bestseller Liberty & Tyranny, and familiarize yourself with the money quote he dug up on "equality under the law" that should be memorized by the GOP candidate who must eventually face Barack Obama on a debate stage.

As Mark tells us, “Who are these people [utopians] and what is this force [utopia] that is so alluring to tens of millions of our fellow Americans, and yet will destroy them?”

Well, you’re gonna have to watch our interview with him to find out. Part one is posted here, and stay tuned this entire week for our exclusive with one of the conservative movement’s fiercest defenders.

—Jason Mattera

SEC Inspector General David Kotz Resigns Effective 1/31/12

For those of you who have followed Mr. Kotz's rather colorful career over the past few years, here is an announcement that should come a little surprise to his observers.  Without calling all of his career choices into question, the dominant questions are is he leaving because he wasn't aggressive enough in his whitewashes of the SEC's professional behavior, such as on the Madoff matter, or is it because he smells nothing but more trouble ahead.  I doubt anyone in his position could adequately discharge the duties of a good IG for an organization as tainted as the SEC.  If there is one surprise, it is how long he put up with Schapiro's machinations.

INTERNET BASED TESTS FOR CHRONIC PAIN VICTIMS

I have been the Chairman and CEO of an Internet-based Chronic Pain Testing Company for over 2 years.I thought the material below would describe what it is we offer, from the inventor of the technology whom I have worked with for over 15 years.

MY INTERNET BASED TESTS

As you know, I have published 3 books, 33 medical text book chapters, and 58 articles. I found the 40%-67% of chronic pain patients are misdiagnosed. This led to the development of the following questionnaires available over the Internet.

1)      Mensana Clinic Diagnostics, which markets two Internet based questionnaires, which have two purposes a) the Pain Validity Test ($300) predicts with 95% accuracy who will have abnormalities on objective medical testing, and predicts with 85% accuracy who will not have any abnormalities. The test costs $300, and depending on the results, it has application for insurance companies to detect fraud for a fraction of what they now spend ($3,500 to $5,000 or more for fraud investigation), (see www.InternetMedicalEvaluation s.com )and for plaintiff attorneys (see www.MarylandClinicalDiagnostics.com)  to prove that their client is not faking. Since there are two different audiences, with two different agendas, there needed to be two different websites. Since the test just tells the truth, and is not biased, and is based on 7 articles published in the medical literature on 794 patients, it is always admitted in court. It was developed by a team of doctors from Johns Hopkins Hospital, shown below.

•                Donlin Long, MD, Ph.D. former chairman of neurosurgery Johns Hopkins Hospital, founder and Director of the Pain Clinic, Johns Hopkins Hospital, professor of neurosurgery, Johns Hopkins University School of Medicine

•          James Campbell, MD –professor of neurosurgery, Johns Hopkins University School of Medicine, past president, American Pain Society

•          Reginald Davis, MD – former  chief  resident in neurosurgery, Johns Hopkins Hospital, assistant professor of neurosurgery, Johns Hopkins University School of Medicine, chief of neurosurgery, Greater Baltimore Medical Center

•          Nelson Hendler, MD, MS, former assistant professor of neurosurgery-Johns Hopkins University School of Medicine, past president, American Academy of Pain Management

•          John Rybock, MD, assistant professor of neurosurgery Johns Hopkins University School of Medicine, assistant dean for academic affairs, Johns Hopkins University School of Medicine.

2)      The Diagnostic Paradigm and Treatment Algorithm ($800) which generates diagnoses which have a 95% correlation with diagnoses of Johns Hopkins Hospital staff members (published), and then offers a Treatment Algorithm, which tells the doctors what test to order, and treatment to give, so they can get the same results as Mensana Clinic, which had published outcome studies showing results far better than what the insurance companies can obtain. Again, this test is offered via the two B2B websites, mentioned above, and in a scaled down version on a B2C website (www.DiagnoseMyPain.com )  for $49.95. It is available in 8 languages, and reaches 1,000,000,000 Internet users around the world (English, Spanish, Italian, French, Portuguese, German, Russian and Arabic).

These tests can be

A)     sold directly to consumers, without any cost of goods to you, through your MLM company, and

B)      can be used in any clinical setting to enhance accuracy of diagnosis, speed evaluations, and assure proper patient care, regard of how dumb the doctor is. This would work well in your projected clinics.

C)      Be sold to trial attorneys

D)     be sold to insurance or reinsurance companies to save them money. The potential sales here are huge…$10,000,000 per company per year, for a re-insurance company

LECTIN- A NUTRACUTICAL WHICH COATS VIRUSES AND BACTERIA

These products represent a paradigm shift in treating infectious disease. Instead of trying to kill the bacteria, or virus, these products coats the infective, organism, rendering them harmless, and thereby eliminate the development of resistant organisms. This company already has a patient for using their product to treat heliobacter pylori, the causative organism of ulcer, the largest segment of the pharmaceutical market, and has patent pending for treating malaria, cholera, and all sexually transmitted diseases. These last three groups represent the leading cause of death in developing countries. The CEO is full professor at Uni. of Maryland, and headed the Anthrax vaccine project at Ft. Dietrich, the Department of Defense lab for biological warfare, in Maryland (don’t drink the water around there Ron).

MEDICAL TOURISM

One project I have worked on, which took me to the Philippines, representing our joint venture partner, Johns Hopkins Hospital, was to establish medical clinics doing high quality health care, with US trained and certified doctors, under the supervision of Johns Hopkins surgeons, for cardiovascular surgery, joint replacement, back surgery and chronic pain. Hopkins tried to steal the project from us, and the CEO sued Hopkins for $12,000,000 and won. Now, without involvement of the Hospital, he has started the project again, with retired chairmen of various departments from Johns Hopkins, without hospital interference. We almost had a project in Monterey, Mexico, through my introduction of the project to Starwoods, through my friend, who is VP, but then the drug lords started killing tourists and government officials there, and no-one wanted to go to have surgery offshore. We again are re-exploring the Philippines, and China, of all places.

---

Subject: Cheesehead view

EXCELLENT LETTER by a Cheese Head - a must read. FOR ALL

Obviously written by a resident of Wisconsin , I think He or She hit the nail on the head. This could have been written by anyone from any of our former industrial states. You need to read this, maybe twice.

EXCELLENT LETTER

We used to make things in Wisconsin . We made machine tools in Milwaukee, cars in Kenosha and ships in Sheboygan . We mined iron in the north and lead in the south. We made cheese, we made brats, we made beer, and we even made napkins to clean up what we spilled. And we made money.

The original war on poverty was a private, mercenary affair. Men like Harnishfeger, Allis, Chalmers, Kohler, Kearney, Trecker, Modine, Case, Mead, Falk, Allen, Bradley, Cutler, Hammer, Bucyrus, Harley, Davidson, Pabst, and Miller lifted millions up from subsistence living to middle class comfort. They did it - not 'Fighting Bob' La Follette or any of the politicians who came along later to take the credit and rake a piece of the action through the steepest progressive scheme in the nation.

Those old businessmen with the beards cured poverty by putting people to work. Generations of Wisconsinites learned trades and mastered them in the factories, breweries, mills, foundries, and shipyards that those capitalists built with their hands. Thousands of small businesses supplied these industrial giants, and tens of thousands of proprietors and professionals provided all of the services that all those other families needed to live well. The wealth got spread around.

The profits generated by our great industrialists funded charities, the arts, education, libraries, museums, parks, and community development associations. Taxes on their profits, property, and payrolls built our schools, roads, bridges, and the safety net that Wisconsin's progressives are still taking credit for, as if the money came from their council meetings. The offering plates in churches of every denomination were filled with money left over from company paychecks that were made possible because a few bold young men risked it all and got rich. Don't thank God for them; thank them that you learned about God.

Their wealth pales in comparison to the wealth they created for millions and millions of other Wisconsin families. Those with an appreciation for the immeasurable contributions of Wisconsin's industrial icons of 1910 will find the list of Wisconsin's top ten employers of 2010 appalling: Walmart, the University of Wisconsin--Madison, Milwaukee Public Schools, U.S. Postal Service, Wisconsin Department of Corrections, Menards, Marshfield Clinic, Aurora Health Care, the City of Milwaukee, and the Wisconsin Department of Veterans Affairs.

This is what a century of progressivism will get you. Wisconsin is the birthplace of the progressive movement, the home of the Socialist Party, the first state to allow public sector unions, the cradle of environmental activism, a liberal fortress walled off against common sense for decades. Their motto, Forward Wisconsin, should be changed to Downward Wisconsin if truth in advertising applies to slogans.

There is no shortage of activists, advocates, and agitators in this State. If government were the answer to our problems, we would have no problems. The very same people,or people just like them, who picketed, struck, sued, taxed, and regulated our great companies out of this state are now complaining about the unemployment and poverty that they have brought upon themselves. They got rid of those old rich white guys and replaced them with nothing.

Wisconsin ranks 47th in America in the rate of new business formation. We are one of the worst states for native college graduate exodus; our brightest and most ambitious graduates leave to seek their fortunes elsewhere. Why shouldn't they? Our tax rates are among the worst in the nation and our business climate, perpetually in the bottom of the rankings, has only recently moved up thanks to a Governor who now faces a recall for his trouble.

In 1970, the new environmental movement joined unions and socialists in a coordinated effort to demonize industry. A generation or so ago, the ranting against 'polluting profiteers' was like white noise, always there. They won, and here is the price of their victory: in 1970, manufacturers paid 18.2% of Wisconsin's property taxes, the major source of school funding and in 2010 those who remained paid 3.7%.

So who is it that caused the funding crisis in our schools and the skyrocketing tax rates on our homes? It is the same ignoramuses who are sitting on bridges, pooping on things, and passing around recall petitions. The unemployed 26-year old in the hemp hat looking for sympathy might look instead for some inspiration from Jerome I. Case, who started his agricultural equipment business at the age of 21, miraculously without an iPhone 4s. Mr. Case got rich by asking people what they want and making it for them. He did not get rich by telling people what he wanted and waiting for them to do something about it.

In the last decade alone we have lost 150,000 manufacturing jobs in this state, over 25%. And it's not just jobs that have been lost; the companies that provided them are gone. Those jobs are not coming back, no matter how long we extend unemployment benefits pretending that they are. The 450,000 people who still work in manufacturing in Wisconsin are damn good it at, but we are now outnumbered by people who work for government. A significant number of the latter are tasked with taxing, regulating, and generally harassing the former. While it is true that many manufacturers chased low-wage opportunities on their own, many more were driven out of the state by the increasing cost of doing business here.

It is a myth that unions improve wages. If you consider only the 1,000 jobs in a closed shop, you might think an average union wage is, say, $30/hr. But if you add in the zero wages of the 10,000 jobs lost in companies chased out by union harassment, the average of all 11,000 union workers is reduced to $2.72/hr. Do you know the average wage of union iron miners in this state? Zero. And the left is fighting hard to keep it that way in Northern Wisconsin - looking out for the working man, they call it.

It is also a myth that free trade causes job losses. Over the past three years, U.S. manufacturers sold $70 billion more goods to our Free Trade Agreement (FTA) partners than we bought from them. Conversely, we suffered a $1.3 trillion trade deficit with countries where no FTA's exist. I doubt that kids are going to learn that in our government-union monopoly schools' it doesn't fit the narrative.

No one wants to see another person suffer in poverty, and liberty is the best economic policy there is. The great industrialists of Wisconsin took less than a generation to lift millions up to a life of dignity, pride, prosperity and good will. When enterprise was free and government was limited, we all prospered.

Those great men of industry were not anointed at birth to be rich; they rose from nothing to great wealth through their own hard work and the value they added to their employees and their customers through choice, competition, and voluntary exchange. That is the only sure path to real prosperity. The debt economy is a temporary illusion.

Look again at the list of our famous industrialists and the list of our current employers. Who would you wish your child or grandchild to grow up to be? Who do you think will do more good on this earth, J. I. Case and his tractors, or the Coordinator of Supplier Diversity at Milwaukee Public Schools? If you chose the MPS, then apply now, that job is open, and it pays up to $72,000 plus benefits and early retirement.

Go in peace and save the world. Me, I'm going with the tractor guy.