InvestorsHub Logo
Followers 3
Posts 98
Boards Moderated 0
Alias Born 11/30/2005

Re: None

Thursday, 11/23/2006 9:08:23 PM

Thursday, November 23, 2006 9:08:23 PM

Post# of 358440
It's The End Of The World As We Know It


Posted by: bobo 11/23/2006 10:40 AM
------------------

Everyone should take out a moment to read the following two spreadsheets from the Securities Industry Association, wherein the NYSE tallies up its liabilities and assets, per that body's requirements.

Spreadsheet one is the latest, for Q2, 2006:
Spreadsheet two are the totals for the last 5 years:

http://www.thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/533/Default.aspx

Note that the total FTD's for Q2, 2006 are $27.7 billion, and the FTR's are $35.4 billion. That's a lot more than the $6 billion the SEC and DTCC use as their total to describe the size of the problem, huh? Like ten times as large, JUST ON THE NYSE?

And that is marked to market. The actual cost to buy it in would be more like 10 times that.

So a $60 billion problem - not adjusted for the actual buy-in cost, which could easily be more like $600 billion - not a $6 billion problem.

No wonder the SEC's number one job is to prevent short squeezes. Where would all that money come from to cover what had been STOLEN from the system? It's all gone now - paid out in big bonuses we read all about in the WSJ every year. It isn't in the system anymore. It has been taken, and the asset it was exchanged for never delivered.

What else has the DTCC lied to us about? The SEC?

How about the following: look at the repo agreement column - $1.879 TRILLION.

Reg SHO has a loophole for repo agreements - if you have a repo agreement, which is basically a contract to buy back the shares you sold, you don't have to report the sale as a short sale, as you are still considered long, as is the new buyer, who can then sell them again, execute a repo agreement, and also be long as well.

It's a handy way to use the same million shares over and over and over again to sell into the market, never reporting your sales as short sales, but depressing the price of the targeted stock as a virtually unlimited amount of stock hits the demand.

That would be almost $2 trillion of repo agreements.

So let's all, on this Thanksgiving day, wonder aloud how $63 billion of FTDs and FTRs can possibly be reported as $6 billion of the same animal (unless these are pre-netting amounts, which would make sense - if $6 billion is post netting, and netting equals 96% of all trades, then one would expect the fails to be ten or more times as large, pre-netting - echoing what I've been patiently saying all along about netting and how it conceals the true size of the problem).

And recall that the $63 billion is actually more like multiples of that amount at the original sale price of the stock - the current market value represents the newly depressed price, not the actual sale price. So that is many times larger in actual dollars into the pockets of the scumbags who are taking that money from investors, and taking it out of the system to pay big bonuses and buy Picasso's and whatnot.

And then further think about what that $1.8 trillion of repo agreements means - what percentage of that represents promises to buy back that will never be executed, or better yet, represent a portion of the "ex-clearing" problem?

Most of it? Half?

This is all just for the NYSE. The NASDAQ is likely much larger. And the OTCBB, and the AMEX, and......

I have been mocked as an alarmist by the apologists who claim there is no systemic risk issue, no problem to be really really worried about.

Here we have documented evidence that my most dire predictions have been the tame version.

The system is stealing a percentage of the GDP every year via failing to deliver products. I would guess it runs around $500 billion to $1 trillion every year.

That is a massive theft of the nation's worth by a small segment of the population.

Now, for those who would argue that based upon the trillions traded every year, that hundreds of billions isn't a big deal, let's put that into perspective.

What if hundreds of billions of bank deposits were missing every year? Would you cite the total deposits of the US banking system, and argue that $500 billion to a trillion every year isn't a big deal?

What about if this was the blood supply? If your regulators and government were telling you that supply was safe, and then you found that it was HIV infected to the tune of 10, 20, 30% every year, would that be acceptable?

Folks, this is simple. You have been lied to by an enormously powerful system that requires your complacency and apathy to continue to steal what you worked all your lives to save.

This isn't an issue of being a bad investor, and picking bad investments. This is an issue of hundreds of billions of your dollars being stolen by thieves, just as surely as they would be stolen if they held a gun to your head.

The big lie is that your investment losses are your fault, and sort of deserving of shame and silence. Here is documented evidence that much of it is clearly money stolen by those who sell, and then don't deliver - a massive, coordinated effort involving most of the trusted entities who trade the markets on YOUR behalf.

Do you understand the difference between investing in a house in the wrong neighborhood, and being carjacked & having your wallet taken? Yes? No?

The apologists bang the "it's a bad company" drum to foster this belief in you - that you are a degenerate gambler deserving of what you get. What they won't do is address the very large, very obvious numbers you now have in your possession. Because that shows the amount they are flat out stealing. And they don't want to acknowledge the reality of the numbers.

Please send this column, as well as the links, to Specter for his December 5th hearing, as well as to every journalist you think would be able to read a spreadsheet. This is not a small problem. It is massive, involves the very government you pay to protect you, and is the systematic theft of the nation's savings on an unprecedented scale - and it can only end in a global depression of epic proportions, when the system decides there is nothing left worth stealing.

It's up to you to stop it now. You have the real numbers. Do something.

It will be interesting to see whether any journalists will even get near this now that it is blown wide open. You think Carol Remond, who has written so many "it's a small problem" articles will admit to misrepresenting the whole thing? Think that the Motley Fool will admit that their "ban" on discussing the issue is a blatant censorship attempt to stop anyone from knowing how big this is?

The numbers don't lie. $63 billion on the NYSE alone in Q2, at mark to market valuation, not counting the percentage of the $1.8 trillion of repo agreements that serve to mask another layer of this onion.

Folks? This is not a small problem.

What we have here is a mega, systemic-meltdown-scale problem caused by the brokers treating the markets like their own private piggy bank, from which they can take money and leave IOUs, to be tossed when they've driven the companies to zero. And our regulators, our elected officials, and our media have completely failed us. They have one and all colluded to facilitate the theft of OUR MONEY, and are now scrambling as the size of the theft becomes apparent.

De-materialization is just the final effort to destroy any asset rights you have, so they can conveniently turn the entire market system into a Federal Reserve type of scam, wherein assets don't back the chits you are paying for, but rather the "good name" of the broker does - and his name stinks to high heavens and isn't worth the spit it would take to put him out if he was on fire. Unlike the Fed's guarantee that the currency they distribute is backed by the full credit of the US Government, the guarantee you are getting is that your IOU is backed by the ability of your broker to trick enough new rubes out of their money to make good when you need out of the scam. The guarantee isn't worth squat. It is a sham, and is expressly forbidden by the 1933 and 34 Acts - for very good reason.

Starting to get this now?

Any facile smirking dismissals from the apologists? Any 'lilGW "there is no big problem" paid idiocy to try to feed to the masses? No? Nobody wants to chitty chat about tens or hundreds of billions failed, in black and white, on a spreadsheet prepared by the association that is also lobbying to change nothing about Reg SHO?

I hope everyone completely appreciates how coordinated this all is, how every strata of the entities chartered with ensuring this never happens have instead worked to obfuscate and misstate what has been going on.

Please propagate this blog to every message board and blog you can think of. No smoking gun required anymore - we have the actual data now, and it should scare the hell out of anyone that can read.

It is way worse than anyone ever was willing to admit. And now we can prove it.

They've stolen a lot of our retirements, and concealed the theft by lying and promising that the cash or the stock will be there when we check, or need it.

Guess what? They lied. It isn't.

And now it is absolutely obvious to even the dimmest.

Copyright ©2006 Bob O'Brien

--------------------------------------------------------------------------------
Comments (19) Add Comment
--------------------------------------------------------------------------------
Re: It's The End Of The World As We Know It
By Wicked World on 11/23/2006 11:58 AM

What would I do?

I would believe you.

Remember Aguirre! Remember Aguirre!
--------------------------------------------------------------------------------


Re: It's The End Of The World As We Know It
By bark, hide it and run on 11/23/2006 1:03 PM

Prosecutors in Munich have arrested and questioned six people over alleged attempts to transfer funds from Siemens to external accounts outside Germany. Prosecutors last week made the first arrests and searched Siemens' offices in Munich including that of Klaus Kleinfeld, its chief executive

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=FT&Date=20061123&ID=6222...
--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By davidn on 11/23/2006 1:05 PM

I believe much of the trading outside the US is completely phantom. They never come to the US to cover, instead handling everything via repos. For stocks that trade a lot of European volume, you rarely see European brokerages or custodians pop up on the security position reports.

We've been tricked into talking about this as shorting, when much of the counterfeit are "phantom longs" via daisy chains of repos, borrowing, etc.

Clearstream is the suspected money laundering custodian that accidently overstated their assets by 1.5 trillion dollars (check Wikipedia).

I think many "naked shorts" are hidden by Clearstream, which owns the German exchanges. They enter into repo agreements with US custodians to mask the phantom nature of the shares.

This is the self regulatory association that manages international repurchase agreements. Rather than borrow shares, you buy them with a promise to sell them at some, possibly undated point in the future. The buyer is long and the seller is long by virtue of having a contract to repurchase.

http://www.icma-group.org/international1.html

The whole repo market is many quadrillion dollars, but the equity piece is almost $6 trillion or 1,000 times the $6 billion the DTC says fails to deliver. $6 trillion against the $31 trillion Cede & Co. owns.

"This market has a significant role in the international securities market as a whole by providing liquidity, marketability and in offering opportunities for the mitigation of credit risk. The most recent ICMA repo survey has set the lower boundary for the size of the market at EUR 5.8 trillion."

"Due to its inherent cross border nature, the international capital market is not subject to the same degree of regulation that governs domestic primary and secondary markets."
--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By refusing to cooperate, make me on 11/23/2006 1:18 PM

Monster Worldwide Inc., owner of the most-used online job list, fired general counsel Myron Olesnyckyj amid a probe into whether executives manipulated the dates on option grants.

Olesnyckyj, suspended from his job Sept. 16, was dismissed for cause, the New York-based company said today in a statement. Monster cofounder Andrew McKelvey quit the board last month after refusing to cooperate with the company's inquiry.

The executives are among at least 59, including 10 general counsels, who have left their jobs because of options probes. A total of 187 companies have disclosed internal or federal investigations into whether they backdated option grants to when the stock was trading lower, artificially boosting their value. Companies have taken a total of $5.25 billion in charges to account for expenses associated with misdating grants.


http://www.bloomberg.com/apps/news?pid=20601087&sid=aIKjaKeipwjE&refer=home
--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By kevin on 11/23/2006 1:28 PM

The fundamental problem is that they think they are "stock bankers".

They're not. They're "stock brokers".

The difference is that a broker brokers a transaction. A real estate broker matches the person who wants to buy a house to the person who wants to sell a house. The wheat broker matches farmers to grocery stores. A broker is not the owner of the asset and should only receive a small commission to facilitate the trade.

For some reason, these custodians think they are banks and that our shares are some form of fiat currency that they can create out of thin air or that they can treat as their own asset. How many times are your assets pledged as collateral for loans at the various levels all the way up to Cede & Co.?

If you own your cert., they can't do that.

The problem for them is that legally, they aren't banks and they can't treat the asset as theirs. They are supposed to be holding it for you, in segregated form in cash accounts as YOUR asset.

The asset is yours and if they have treated it differently, than they may have committed crimes, including interstate wire fraud. To cover the crime up with fake fail numbers, falsified voting procedures, confirmation slips, etc. is obstruction of justice.

--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By denied any wrongdoing, where do I pay fine? on 11/23/2006 1:41 PM

Lone Star, the most active private equity fund in Asia's third-largest economy, had been prevented from completing the deal agreed in May as prosecutors looked into allegations that financial data on KEB was understated to help Lone Star buy the bank at a bargain price of $1.2 billion.

http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-11-23T104313Z_01_SEO572...
--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By How they screw us! on 11/23/2006 1:55 PM

If you want to see first hand how these scumbag naked shorters manipulate a stock watch th trading in Jag Media (JAGHE) tomorrow. Watch the trade cancellations (naked shorters), watch trades at fractions of a cents, crosses ,large drops in prices. You name it and that manipulation is done in JAGHE. However these naked shorters are stuck up the koola and their time has run out!
--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By bobo on 11/23/2006 2:06 PM

Kevin: You have it absolutely correct. They want to be bankers, rather than brokers. Except that isn't the way the system is supposed to work. Those aren't their assets. They aren't in the stock creation business. The 1933 Act specifically makes illegal stock creation of this type. It is a felony. This isn't supposed to be a market where some faceless scumbag takes your money and exchanges it for an IOU for which they lack the asset. That is fraud. Plain fraud.

And I think we are all beginning to understand just how big and entrenched this all is. It isn't a couple of rogue funds - it is the prime brokerage system, as well as the clearing system, along with some of these rogue funds.

That's basically the whole system.

No wonder they will buy or threaten or destroy anyone or anything that threatens their thievery ring. It is the single biggest theft in history. Makes the S&L thing a sliver by comparison.

And now we know the actual numbers, at least on the NYSE. Question is whether Specter will understand, and bring this up at his hearing.

"Let's turn to the SIA spreadsheet for Q2 on the NYSE's assets and liabilities. Care to explain to me how they are showing $63 billion in FTDs and FTRs while you have been telling us the whole problem is only $6 billion?"

"Uh.....uh....I take the fifth."
--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By davidn on 11/23/2006 2:24 PM

We also know the international repo market for US equities is $6 trillion as per these guys:

http://www.icma-group.org/international1.html

That's $6 trillion when Cede & Co. only owns $31 trillion altogether.
--------------------------------------------------------------------------------


Re: It's The End Of The World As We Know It
By bobo on 11/23/2006 2:36 PM

Davidn: That is trillions of dollars taken out of the system we will never see back. It is gone now. The money was stolen, whisked away elsewhere. We are left with essentially worthless IOUs we can hope can be exchanged for real dollars before the meltdown happens and the majority get stuck with a shrug and a lawsuit.

Seeing the confirmation is sort of stunning, really. Money, taken in exchange for assets, wherein the assets aren't there, and the trades have been used to destroy the value of the remaining legitimate assets.

I can't imagine this being any worse at this point.
--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By davidn on 11/23/2006 2:50 PM

Bob, the Securities Act wouldn't apply to a brokerage in Canada or Europe. My guess is they are taking our asset and selling it via repo to the foreign brokerages.

My first question when trying to figure out who owned Cede & Co. was whether the assets they held in trust were encumbered in any way. They think the assets are theirs and the pledge them as security, sell them or never bother owning them in the first place.

The sad thing is that once you make your money, no one asks where it came from. A crook can hire a lobbyist just as easily as a successful business can.

I can imagine it could possibly be even worse than we've learned so far. It's timely that we can get at least this fail data to Specter. It's hard to argue against facts.

Has anyone in the industry perjured themself to claim this is a $6 billion problem?
--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It By grandfather clause2 on 11/23/2006 2:59 PM

Does that mean we cannot force anymore companies into chapter 11 and buy them for pennies and tell the shareholders tough shit, the shares are worthless?

Why you want to mess up our game? It was just getting fun.

Oh well, we took over most of what we wanted and thanks to grandfather clause. You are screwed. Maybe we could just do a grandfather2 and start over. We will do better next time covering our fraud, we got dumb and greedy.
We won't do that again.
Are you going to force us to cover the naked shorts?
No, you are a poor dumb american that is to dumb to understand how
the system works. It is not my fault that you are to poor to bribe someone, to get your needs met. That is your problem. I can afford to buy the media, judge, lawyer, accountant and the lobbyist and the politician. So go back to your cardboard box and hold out your tin can. Stop blaming us for all of your troubles crybabies.
--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By kevin on 11/23/2006 4:20 PM

The crooks plan to crash the system, 1929 style so they can cover at pennies on the dollar. They gained control of much of the wealth of the country the last time they orchestrated a great depression.

Let's stop them before they can orchestrate a crash. Let's make them cover at today's prices so we can make money for a change as the money transfers from their pocket into ours.

--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By Jeremiah 9:24 on 11/23/2006 4:21 PM

Gives one an idea of why the crime masters (1) want to take all these exchanges public and (2) want to acquire/merge as many as possible as soon as possible. Just like what happened with Refco, if they can get these houses of prostitution public, then a good portion of the financial loss is shifted to the investing public (plus the money masters can naked short them into the ground as they collapse, "laughing all the way" -- to borrow a holiday theme). And of course, if you control all the major exchanges, then there is no other playground for those who would love to exit Wall Street's cesspool.

It's tough to admit but the scam is too big to be allowed to collapse--or even be exposed; and as BobO noted, any crusaders will get bought or crushed before the gates can be crashed. Then again, all scams eventually collapse; the Federal Reserve is probably the longest lasting one so far, but how much longer can a fiat currency issued by a private banking cartel and backed by a bankrupt former democratic republic (now a de facto oligarchy) last? Maybe the banks are off limits, sort of a professional courtesy thing among thieves. So perhaps one might invest in them.
--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By feelin' fine on 11/23/2006 4:22 PM

That's great, it starts with an earthquake, birds and snakes, an aeroplane -
Lenny Bruce is not afraid. Eye of a hurricane, listen to yourself churn - world serves its own needs, regardless of your own needs. Feed it up a knock, speed, grunt no, strength no. Ladder structure clatter with fear of height, down height. Wire in a fire, represent the seven games in a government for hire and a combat site. Left her, wasn't coming in a hurry with the furies breathing down your neck. Team by team reporters baffled, trump, tethered crop. Look at that low plane! Fine then. Uh oh, overflow, population, common group, but it'll do. Save yourself, serve yourself. World serves its own needs, listen to your heart bleed. Tell me with the rapture and the reverent in the right - right. You vitriolic, patriotic, slam, fight, bright light, feeling pretty psyched.

It's the end of the world as we know it.
It's the end of the world as we know it.
It's the end of the world as we know it and I feel fine.
--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By feelin' fine on 11/23/2006 4:27 PM

My favorite line is "offer me solutions, offer me alternatives and I decline"...it implies that no matter what, we won't back down from anything--even "the end of the world as we know it."
--------------------------------------------------------------------------------


Re: It's The End Of The World As We Know It
By don't F___ with this crybaby on 11/23/2006 4:54 PM

kevin
You are right. That was/is the shorts plan. Scare the hell out of everyone.
The more violence the better. It keeps the focus on the scare tactic. The thugs are mad, very mad. Even trying to scare and threaten or kill some of the people that are hunting them down. They want the parties to fight against each other and create as much chaos as they can muster up.
Panic is their goal. We will not. We will kick their ASS. watch.

We just need to get rid of the SCUM in leadership positions.

The American public does not know who
the F___! to trust.

SICKENING.

If our elected officials do not get their shit together and clean up this mess.
It is going to get nasty. Very NASTY.

Enough people now understand what the hell is going on
and how the game works. We might see some hedge funds blow up.

The shorts plan to destroy is not going to work.

--------------------------------------------------------------------------------



Re: It's The End Of The World As We Know It
By Depression II TV on 11/23/2006 5:16 PM

http://www.depression2.tv/
--------------------------------------------------------------------------------

Re: It's The End Of The World As We Know It
By will we get them? on 11/23/2006 5:44 PM

'The bastards got me'

THE poisoned Russian spy breathed defiance at the Kremlin as the effects of a mystery cocktail pushed him towards death.

"I want to survive, just to show them," Alexander Litvinenko said in an exclusive interview just hours before he slipped into unconsciousness, and later died.

http://www.theaustralian.news.com.au/story/0,20867,20813647-2703,00.html
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.