11 U.S. Banks Sued Over 'Naked' Short Selling

[AGENDA21]

If you think about how short selling is supposed to operate, this one seriously boggles the mind. No, this is unbelievable! These banks are making markets for financial instruments that don't even exist.

For about twenty years, I've known that fiat currency systems are just faith based ponzi schemes. But this goes way beyond faith. In this stock racket, the underlying "paper" isn't even there!

I've personally gone to short stocks in the past, and seen a message that says, "No shares available to short." That's what happens when the firm you're using has lent all of the shares it has available for shorting to other traders. I guess I wasn't using a crooked enough broker.

Well, bankers lend made-up money---backed by nothing but debt---to people and charge interest on it. And what, really, have they lent? Some number with a bunch of zeros after it on a computer screen. Why not let people short stock that banks don't control and then charge big fees for the privilege?

http://cryptogon.com/2006_04_09_blogarchive.html#114496863032334197

[hobbit709]

1. "Money for nothing, and the chicks are free"

[wtmusic]

2. This is weird...writer has a weak understanding of finance

How can you lend someone made-up money? They either get the money wired to their account, or don't...:silly:

[elehhhhna]

3. talking margin accounts, imo

[jmowreader]

5. The guy appears to be a gold-standard fundamentalist

Most of the world's currencies are backed by the "good faith and credit" of the government--IOW, government bonds.

Gold-standard fundies call this currency "made-up money."

The US dollar happens to be an oil-standard currency, but that's beside the point.

[stillcool]

4. Isn't that what "Silverado" did?

[Jose Diablo]

6. 11 nude bankers would be nightmarish sight n/t

[APPLE314]

7. USE THE INFO TO MAKE MONEY

WALK INTO ABOND ROOM IN THE MORNING FOR MORNING CALL. THEY TELL WHICH STOCKS ARE NOT IN THE BOX ( NOT SHORT SALE CANDIDATES ) AND WHICH ARE READILY AVAILABLE FOR SHORTING. BROKERS DON'T NORMALLY GO OUTSIDE THE BOX BECAUSE THEY CAN'T MAKE AS MUCH MONEY IF SOMEONE ELSE PUTS UP THE STOCK FOR THE SHORT SALE. THEY CAN FIND IT IF YOU FORCE THE ISSUE. IF YOU'RE DEAD SET ON THE SHORT SIDE DO IT WITH PUTS.