The Jailhouse

[Ignutz]

Are you in on this racket dumm1 ??

Watchit ... Zenman sez the ammo is mounting.

When you look at the list of things that have happened recently, it is all starting to add up. IMO get ready for the biggest shock to the financial markets to ever hit. HedgeGate '05 (or '06 maybe) I believe will make all other financial scandals pale in comparison.


Bennett grills Donaldson.
5 Senators (and more to join?) begin a vocal inquiry into counterfeited shares.
SEC's Cutler steps down.
SEC's Donaldson to step down.
SEC authorizes a limit of liability on all wilfull misconduct and federal securities law violations by the NSCC (subsidiary of DTC).
DTC awkwardly puts out 2 back-to-back defensive PRs claiming there is no illegal naked short selling through it
Overstock.com president puts out scathing letter re: counterfeit shares.
O'Quinn lawsuits continue.
Eagletech judge orders DTC to produce trading records.
Pink Sheets president puts out scathing letter re: counterfeit shares.
Transfer Online President puts out scathing letter condemning the DTC for its failed system.
SHO continues to fail comprehensively.
SEC nailed for failing to complete its OWN financials and for failed oversight methods in its responsibility (congressional probe to begin).
Dateline episode on NSS postponed indefinitely.
DTC ignores the First Amendment and shuts Financialwire's publishing avenues down.


Start adding it up. The biggest scandal of all-time on Wall Street is about to hit imo. The hedge funds have taken advantage of every loophole in the book to make trillions imo and the sec and dtc have sat idly by while the hedge fund industry has exploded in growth. I only hope that when this is all said and done that there is not a global meltdown from this. I hope that there will be a cushion of some sort to help the markets absorb the changes that MUST take place:

1. Get rid of the DTC.
2. Give SHO teeth.
3. Eliminate the MM system and move to an all-electronic trading system with certain controls in place.
4. Let the heads roll at the SEC.
5. Take down the guilty hedge funds.
6. Move to eliminate all pink sheet companies over time (there simply should NOT be a market for securities this unregulated).
7. Pray the financial markets survive the fallout.


How will CMKX play into this? I don't know. I do know that Maheu is probably capable of "conditioning atmospheres" as they say and, given his history, I highly doubt if any of us would EVER know what he knows or where his next moves will be. I'm just glad he's on our side of the chessboard.


Donaldson's resignation should come as no surprise. A storm is a-brewin' imo and those that see it on the radar are preparing for it. Remember how insider selling can often reveal problems well in advance of market knowledge. Well, take a gander at the exodus going on at the SEC ...