Replies to post #18858 on One Step Ahead

[GTC]

Let's hope these hedge funds pay up before going out of business.

They could declare bancruptcy right off - I think that leaves
the brokers and the DTC on the hook.

GTC

[pontiyak]

The same proccess may have been tried by PCBM..

and since a few of Rogers friends were lawyers over on that issue.. I suspect this is round two.....

funny how much about PCBM is sealed and unavalible to us under the FOI act.

I think the biggest strength of this go-round is the cach'e and allure of diamonds.

used cars.. did'nt quite provide the force ma-jour.

imhco

yak

[mudrez]

For a whole host of reasons, Zen, the best interests of my family unabashedly not least among them, I can hardly wait for this grand drama to enter the act we might call "The Great Reckoning." In other words, and not to put too fine a point on it, I really hope and pray we will see the Biggest Bastards out there get what they so "richly" deserve.

[gump90]

You know what, zen ??
The big funds will also say .. "WHO ?? Me?? So prove it !!". Because they are off-shore, nobody has the smarts to get through their immunity. The S E C WILL NOT HELP. Could be a grrreat election issue eh ? But probably too late now. If I owe you $100,000,000 do you think I'm ever going to PAY you !! You'll have to catch me first .. and I own a lot of the people who you will need to do it. Good luck. That's my opinion.

[perc]

zen, about THE SCAPEGOAT

I think it this post of yours (18857) is important because zen says that it will be hedge fund(s) that will "take the fall"

I find this extremely interesting in light of an earlier post of mine today Re: the Ameritrade Letter (about restricted USCA shares from the dividend distribution NOT getting split - UNTIL THE DTCC SAYS SO) which seemed to want to blame the DTCC for any future problems.

In 18857, zen is saying that the DTCC will in turn blame the hedge fund(s)

HOWEVER, the problem with this is that if the hedge fund(s) are off-shore (which would make sense if they do business by breaking US law) then my question is,

HOW CAN THEY BE FORCED TO PAY / COVER CMKX?

It seems that only the threat of lost business in the future would motivate them to pay up.

HOWEVER, if the SEC has truly "shut the door" on all the loop-holes making share-counterfeiting possible, then MAYBE THEY MIGHT FIGURE THAT FUTURE GAINS WILL BE MEAGER COMPARED TO THOSE ALREADY MADE IN THE PAST and choose to keep the later rather than go for the former.

What I am trying to say is that if the DTCC "pushes the BUCK" to off-shore hedge funds, IMHO, it will not "stop" anywhere, but rather sink down into the depths of Davey Jones' Locker.

SO, ZEN, IF THE FUNDS TO WHICH YOU REFER TURN OUT TO BE OFF-SHORE AND BEYOND OUR REACH (IF THEY CHOSE TO REMAIN THAT WAY AND FORFEIT FUTURE BUSINESS HERE), THEN WHAT RECOURSE WOULD ROGER AND URBAN HAVE?

I know that it is believed we want to avoid a court battle, but your "The Scapegoat" post seems IMHO to hint that it may be unavoidable.

I am eager for you to clarify your thoughts by correcting any of my misinterpretations of your "THE SCAPEGOAT" post. T I A

Of course, the SEC has in all probability NOT "shut the door" on this abuse completely, as it all boils down to ENFORCEMENT. New rules will have no effect if there is no enforcement, and it is my understanding that naked shsorting is ALREADY "against the CURRENT rules". So, how is failing to enforce NEW rules going to improve the situation caused by failing to enforce the old reules? Of course, it will not.

Perhaps only the political climate on a post "Stock-Gate" Date-Line news show will motivate enforcement.

Ble$$ing$,

jawz_2020

------------------------------------------------------------
THE SCAPEGOAT

Who is at fault for this mess that has happened? IMO the blame will shift as follows.

The market makers will say "It wasn't us. We simply executed trades at the direction of our clients and met all appropriate requirements for our clients maintining adequate reserves and security."

The DTC will say "It wasn't us. We have a system in place that apparently was taken advantage of by some very clever crooks. We need to look into this further to make sure this kind of thing doesn't happen again."

The SEC will say "It wasn't us. In fact, we've aggressively made efforts to stop this exact kind of abuse with our new short-selling regulations set to go into full effect soon."

In the end, IMO, the scapegoat (and rightfully so) will be the very large hedge funds that have profited off of this for a decade. The MMs, DTC and SEC all KNOW about this but have done nothing. Now IMO they will have an opportunity to express their outrage and "take steps forward" to cure these ills. Hopefully they have diligently uncovered exactly which hedge funds are driving this because SOMEONE is going to have to come up with the funds to cover.

Who are the literally hundreds of bashers on RB and here that post several hundred times a day? Who is providing the motivation to ALL the known hatchet jobs (StockBotch, StockPatrol, StockLemon)? IMO it is the hedge funds that are in trouble and at serious risk. If they haven't already transferred as many of their assets as possible elsewhere, they're probably in the process. This one's going to be a doozy IMO because Roger is doing this RIGHT. I have never seen a short position handled this way before. IMO, he is using the DTC and SEC to properly document and correct this issue. It takes someone intimately involved with the way this all works and, being a former SEC man and CPA, Roger knows the system and how to provide transparency to everything that is happening. This will ensure IMO that the proper market mechanics kick in to resolve the naked short issue I believe exists.

IMO, there should be some very large (if not the largest) hedge funds going down and out.


Z

[Tempoman]

Zen, board; intervieuw with SEC commissioner Atkins by LT_Matt.

http://www.investorshub.com/boards/read_msg.asp?message_id=4369438

Tempo