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Re: A deleted message

Saturday, 07/17/2004 11:11:04 AM

Saturday, July 17, 2004 11:11:04 AM

Post# of 341709
There were only 1,000 Hedge funds in 1990... now there are nearly 8,000. Hedge funds remain unregulated entities in a highly regulated market. It is a well known fact that organized crime has entered the market and is present in some of the Hedge funds.

The SEC's mandate is to protect small investors. It is a tenet of the markets that they are a fair and even play ground and indeed if that view is ever significantly tarnished, then investors will eventually shun Wall Street.

It is also true that naked shorting both exists and is illeagal at least in the way it is presently practiced where the seller never covers his naked short. The reason this is so devastating is simple

1) This is effectively the same as the company printing shares, thereby adding up to massive dilution (which lowers the price)

2) For small companies with no revenues that must sell shares to fund operations, this means they must sell much more stock at depressed levels to continue to function

3) It allows the Hedge funds to have nearly unlimited selling power to swap any buying surge, effectively killing it and protecting their own naked position so that they are never forced to cover their short at higher prices.

I have several sources in NYC that are well placed... they were able to check with 3 Hedge funds there with connections they have and they uncovered nearly 50 million shares naked on Sunncomm. This check was made nearly 9 months ago and I had to call in several favors to get it. Obviously there are a lot more than 3 Hedge funds involved with this.

Any article that writes about naked shorting taking the tack that "it's not all that bad" is simply propaganda written by people on the Hedge fund dole. The fact that naked shorting exists is well documented, the fact that the Hedge funds have media outlets, which they use to publish articles about companies they are shorting and raising "questions" about those companies to assist in driving down prices, is also well known... try reading Herb Greenberg sometime from TheStreet.com. He works as a shill for a very large Hedge fund run by John Rocker.

If you have ever owned a company that Herb "investigates" then you know what it feels like to be gang raped by the shorts. I use quotes around the word investigates because Herb doesn't do any such thing, he merely writes things that suggest there may be problems, insinuates there are issues and asks damning questions without making any concrete statments so that he can never be really held responsible for the carnage that ensues... the worst part to me is that he does this all in the guise of being the modern day Robin Hood protecting small investors and riding his high horse as though he is some sort of noble knight fighting evil companies. He is instead just a stooge of the Hedge funds.

I have spoken to the SEC on numerous occassions as well as the NASD and I can tell you the attitude there remains that while they acknowledge there is a problem here, they're not too sure how big it really is. They are not spending any real time or effort investigating any of this and I believe it is because ultimately this scandal is so widespread and amounts to so many Trillions of dollars that no one can figure out how to extricate the situation without major financial pain to the large institutions and so it is they who are being protected here and not the small investor.

Treating Hedge funds as if they are the boogey man and don't exist is to ignore one of the major forces in the market place. Indeed due to their unregulated stature they remain aloof and above the law. If this outrage upsets you, then please click on the link below and become a part of the solution by making your voice heard. Perhaps if there is enough hue & cry something may eventually be done... in Politics the squeaky wheel always gets the grease.

http://www.investigatethesec.com