CMKM Diamonds Inc. (fka CMKX)

[jetfish]

Location: Bob O'Brien's Sanity Check : http://www.thesanitycheck.com/BobsSanityCheckBlog/tabid/56/BlogID/1/Default.aspx


Anyone familiar with my blog is aware that I have been predicting a massive systemic dislocation, or crisis, for years now. The crisis would be caused by the increasingly negative impact of illegal naked short selling and market manipulation, and the stance of our regulators that favors the destruction of companies and investors. It's not like this wasn't foretold in the most exacting manner imaginable. It was. Again and again. You can go back and start reading from my first blogs at this site, or go back and look at the NCANS site in the Internet archives, and see years of now 100% accurate prediction of a major disaster and meltdown of the financial system, caused by NSS.

Patrick is on record for years going on every TV show he could get on, telling it like it is. Warning of the coming calamity. Predicting it in detail. Unconstrained predators, increasingly emboldened by their success with destroying small, and then mid-sized companies, finally turning to the largest and most visible companies to satiate their appetite for destruction. Our regulators, captured and pretending that all was well, precipitating the nightmare. He's on record and has also been 100% accurate in his predictions. You can see a montage of his appearances, for years, here on Youtube :

Talking again and again about how a group of predators on Wall Street have bum rushed the system, and gotten so large and so powerful that they posed a systemic threat, along with the lackadaisical regulation that allowed them to do whatever they felt like. Rewarding destruction with nation-state sized profits.

He has also been at the forefront of suing the prime brokers for engaging in massive naked short selling, and also has sued a notorious hedge fund operator for engaging in precisely the sort of activity that is now front page news, as it collapses the financial system. Will anyone be particularly surprised now if he turns out to have 100% right on that, as well?

And yet where are the articles describing his prescient vision, his many appearances where he warned of what was coming? Where are the floods of invitations from the media to expound on what is a credible, accurate description of the disaster we are now in?

The greatest failure in all of this, besides the failure of our regulators to do anything but kowtow to the special interests of Wall Street, is our media. The financial media has almost universally stonewalled, ridiculed, and ignored the flashing lights and alarm bells of the coming cataclysm.
As an example, in April, 2005, I did a three hour lunch with the senior executive staff of Forbes, at the Forbes townhouse, at the invitation of Kip Forbes, who was a gentleman and tremendously gracious host. I was invited to describe the whole issue of naked short selling and market manipulation, and offer a presentation up to the guys who run the magazine. Patrick accompanied me, and together we told the story, fielded myriad questions, and broke it all down in excruciating detail. The story was greeted with everything from skepticism, to ridicule (by a guy who it turns out is a good bud of the hedge fund community), to polite interest but a sense of larger fish to fry.

So it isn't as though the info wasn't provided, or made clear enough. And yet, through all of this, the NY financial press has acted as though Patrick is a loon, I am a wacko or a stock tout, and the story is a wild and impossible invention of deluded minds. It is almost with a singular voice that this refrain has been sung, for years and years, even as evidence mounted and the system started to collapse.

I could single out the dozen or so worst of the compromised reporters, but we all know their names by now. As an example of the rot, one has only to look to the latest articles on Deepcapture.com for a copiously documented case study of a media machine gone badly wrong. In fact, one example, a series on the NY Times, singles out the exact sort of compromised ethics we've seen in play at virtually every major financial media outlet. Read it here : http://www.deepcapture.com/anti-investigative-reporter-joe-nocera-and-the-newspaper-of-non-record/ It has been the rule for the media to downplay, deny, and engage in a massive cover-up even as the truck hurtles toward the abyss.

The regulators, the media, failed us. They were tested, and they failed us completely, in a way that will cost the country trillions of dollars we don't have. Mark my words. Trillions and trillions, as the true cost of the bailouts surfaces. That will be a burden from which we never recover, and which will go directly to covering up the massive fraud perpetrated by Wall Street on the rest of the world, via a crooked market system, and a crooked derivatives creation machine.

Couple of columns earlier, I posted links to an explanation of how the CDO creators on Wall Street were doing the same thing they have been doing with stocks - counterfeiting them. They basically would use the same mortgage to collateralize 5, 10, 15 tranches of offerings, figuring that the whole thing was so convoluted nobody would ever figure out that the collateral was bogus and fraudulently created. One mortgage, sold over and over and over again, just as in naked short selling bogus shares are sold, over and over and over again, to bilk money out of investors and to destroy companies. Same game.

Actually, same game as Milken perfected with junk bonds, but on a much larger scale. Take junk paper, get someone to certify it as pristine, and then get the world pregnant on it while you mint billions in profits and commissions. Now insert the word CDO for junk paper, and you have the scam. No new ideas.

It was all foretold, by Patrick, and I, and Dave Patch, and Bud, and Mark. We did our best to warn the country, and the world, what was coming. And our media, who was supposed to be the last line of defense, failed us completely, preferring to engage in a campaign of distortion, character assassination, lies, collusion, and cover-up.

I don't expect that will change. Those with the big money get to write history. But they can't stop the blogsphere from telling the truth. And we are on record as having done so, for years.