tag:blogger.com,1999:blog-14963913.post6988833854024715343..comments2023-10-27T20:27:57.900-04:00Comments on Kid Dynamite's World: Rampant Mis-Information - and the Responsibility of Financial BloggersKid Dynamitehttp://www.blogger.com/profile/17475987512856310577noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-14963913.post-17407683037635461782009-10-21T17:13:55.230-04:002009-10-21T17:13:55.230-04:00anon - you are clearly talking about a different a...anon - you are clearly talking about a different article - Taibbi's latest big piece. the facts of THIS article/video are easily verified, which is exactly what i've shown here: the video shows NOTHING of what Taibbi wants it to show.<br /><br />now - as to your points: companies do not go bankrupt from people shorting their stocks. BSC and LEH went out of business because they had a run on their assets - this can happen to any bank, and is unrelated to the stock price. so, NO - shorting stocks is NOT typically a weapon, because it doesn't affect the business of the underlying company<br /><br />i would guess that stock actually can be loaned out multiple times - just like bank deposits can!Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-38651647527343676062009-10-21T15:12:20.738-04:002009-10-21T15:12:20.738-04:00I think the critical points in his article can be ...I think the critical points in his article can be fact checked fairly easily. 1) Is it possible for there to be shadow stocks as MT described? Where 100 shares get loaned out to 5 different people at the same time, in effect making it seem as if 500 shares are out there?<br />2) Were there massive short sells going on in Lehman and Bear immediately prior to their collapse? Is that typical or a weapon? and 3) Are there inadequate safeguards in place to restrict phantom shares from being used against a company?<br /><br />The nitpicking of the video seems like a distraction next to the structural questions.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-89207946318620172492009-10-08T10:20:21.736-04:002009-10-08T10:20:21.736-04:00The statement that no naked-shorting takes place, ...The statement that no naked-shorting takes place, period, in that video is different than was implied by the original post, at least the way I read it. But if you and MT can agree that it does take place, I'd encourage you to take on some of the points about the impact of naked-shorting in his rolling stone article. I feel sheepish commenting because I haven't read that article either, but it was the research for it that got him hot and bothered about the naked-shorting in the first place.Mike Nutenoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-37617438378084551072009-10-07T21:27:29.060-04:002009-10-07T21:27:29.060-04:00Wonderful post, KD. Spot-fucking-on. We need mor...Wonderful post, KD. Spot-fucking-on. We need more bloggers like you and far, far fewer of the MT, Clusterstock etc. etc. variety.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-23307642103218763432009-10-07T16:20:15.541-04:002009-10-07T16:20:15.541-04:00Hey, I've got an idea.
If someone is illegall...Hey, I've got an idea.<br /><br />If someone is illegally shorting, then take them down.<br /><br />And if Obama illegally fired walpin, the inspector general, then take him down, too. <br /><br />Get taibbi on the illegal firing of the inspector general. Oh, i forgot, He doesn't care about that sort of illegality.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-62416725929214591672009-10-07T13:57:22.343-04:002009-10-07T13:57:22.343-04:00Here is another article related to the Rolling Sto...Here is another article related to the Rolling Stone Article by Matt.<br /><br />Rolling Stone Interviews Cast Member of Financial Film "Stock Shock-The Short Selling of the American Dream" <br /><br />Former DTCC operations manager and star of "Stock Shock" Susanne Trimbath is interviewed by Matt Taibbi for his latest article in Rolling Stone. She blows the whistle on the world's largest central depository by revealing that she warned them 15 years ago of an impending financial crisis. <br /><br /><br />New York, NY -- Rolling Stone's own Matt Taibbi interviewed industry expert Susanne Trimbath, Chief Economist at STP Advisory Services, LLC in Omaha, for his latest article in the magazine article about financial corruption. The piece spotlights naked short selling and fall of Bear Stearns and Lehman Brothers.<br /><br />In his new article, Trimbath tells Taibbi the story of how, in 1993, she tried to get senior management at the world's largest central depository (Depository Trust Company) to stop allowing shares of stock in US companies to be multiplied through stock lending and excessive short selling. "You can't balance the world," was the response she got from regulators. She contends this is because "Wall Street is self-regulated and they don't want to write regulations against themselves." By 2003, the size of the problem had increased ten-fold; by 2008 it contributed to the collapse of major financial institutions and the global financial crisis. <br /><br />Trimbath is also featured in the financial film, "Stock Shock: The Short Selling of the American Dream" which documents the alleged massive short selling of Sirius XM radio stock. Sirius XM stock sank to five cents per share earlier this year. In the film, she explains in great detail the process of naked short selling and the impact failed trades have on shareholders and the American economy.<br /><br />Susanne Trimbath holds the Ph.D. degree in economics from New York University. She is an expert on post-trade securities operations and is featured in several films about Wall Street. She frequently acts as an expert witness in securities litigation. Trimbath is a former mid-level operations manager at Depository Trust Company (now a subsidiary of Depository Trust and Clearing Corporation in New York). She currently heads STP Advisory Services.<br /><br />"Stock Shock" was recently released on DVD and has received good reviews. The movie trailer can be seen at www.stockshockmovie.com.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-58458586244653598532009-10-07T09:26:24.764-04:002009-10-07T09:26:24.764-04:001. I don't know his background, but I'd ve...1. I don't know his background, but I'd venture to guess Taibbi has never studied, worked in, around, or near Finance before he decided Goldman Sachs was an evil vampire squid.<br /><br />2. Internet battles are geh, but just like in MSM, good for ratings (at least in the short-run).<br /><br />3. You sure that stock wasn't BAC?<br /><br />4. "...Journalists with the clout of Matt Taibbi..."<br /><br />I stopped reading there. <br /><br />Btw, shoot me an email, gotta question for ya.Unknownhttps://www.blogger.com/profile/09977348430224287393noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-48372565385065030272009-10-07T08:46:53.406-04:002009-10-07T08:46:53.406-04:00Mike, Anon - I am quite sure that some naked short...Mike, Anon - I am quite sure that some naked short selling probably takes place. I disagree with Taibbi that it's a big problem - and I'm adamant that it had nothing to do with the collapse of Bear Stearns, Lehman, Fannie, Freddie, AIG, Overstock, or any other company. <br /><br />But that's besides the point - the POINT, Mike, which you think I've missed, is that Taibbi published a video which he claimed at first showed naked short selling (he definitely claimed this, despite his later backtracking) - it does not. He then said that the video showed the impossible obtaining of a locate of shares to short - IT DOES NOT. <br /><br />The video does not show anything Taibbi claims it does - it is COMPLETELY irrelevant to the discussion. that's the point. It shows no evidence of illegal short selling or inconceivable locates.Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-11950326874106313962009-10-07T08:25:00.870-04:002009-10-07T08:25:00.870-04:00Explain Mike's point. How does adding an entr...Explain Mike's point. How does adding an entry purporting to borrow more than all the outstanding shares of a stock show that the trader isn't naked shorting?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-67866582425139947802009-10-06T19:48:04.718-04:002009-10-06T19:48:04.718-04:00I think you're missing the point pretty badly ...I think you're missing the point pretty badly on this one. I haven't watched the video, but assuming you're right about everything above, Taibbi's point, both in this post and earlier ones, is that naked short-selling takes place and that it's fraud. His point is further that the safeguards in place to prevent are so toothless as to be prone to, for example, leaving an "audit trail" with this kind of thing in it. Your post doesn't seem to dispute that this was an example of naked short-selling made capable by a fraudelent audit trail entry. He may have mixed up a nuance of the event but seems to be on fairly solid ground from a broader perspective.Mike Nutenoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-40543875082019141692009-10-06T13:48:22.393-04:002009-10-06T13:48:22.393-04:00Here, here! I'm also a Taibbi fan, but he Ton...Here, here! I'm also a Taibbi fan, but he Tony Romo'd this issue big time...Kieran McCarthyhttps://www.blogger.com/profile/11606919516884153997noreply@blogger.com