Here's a quick lesson on short selling and naked short selling. Short selling is borrowing shares (often held on margin by another investor who is long that same position), then selling them in the market at a high price and buying them back at a low price.
Naked short selling is really selling short without borrowing these shares then buying them back. It's illegal because obviously there are no shares to borrow. But Regulation Sho allowed this to happen for the market makers and of course the SEC tbrew some loopholes in there to enable somebody to make naked short sales against Bear Stearns, forcing the price of Bear Stearns stocks way down.
I believe the SEC (not Congress) comes up with it's own legislation.
SEC Chairman Cox cited that the collapse of Bear Stearns was due to a "crisis confidence" after the SEC conciously overlooked the naked short selling. The "crisis confidence" sounds too much like Carter's malaise speech.
Bear Stearns did not die of a "Confidence Crisis", it was murdered by naked short selling of somebody who wanted it to fail. There are way too many interesting connections involved with this crime.
The aforementioned article notes a suspicious meeting between the big wigs at the NY Federal Reserve with these Wall STreet big wigs including Rubin (representing Citigroup) excluding Bear Stearn reps...happened on Mar 11. Both Geithner and Bernanke were employed with the NY Federal Reserve at the time. Bear Stearns collapsed on March 16th.
Let's the Alan Schwartz connection. Some how he became sole president and COO of Bear Stearns after Warren Spector was forced to resign. He took over the when the stock was trading at $75/share and after it's merger with JP Morgan the stock declined to $5/share. This alone is a sketchy affair.
Per "Bear Stearns" on wikipedia, it was Treasury secretary Paulson and Bernanke who told Schwartz to sell JPM on Mar 16, 2008 stating that Bear's bankruptcy would cause massive economic problems and sell offs.
"Bear Stearns' liquidity pool started at $18.1 billion on March 10 and then plummeted to $2 billion on March 13."
After Schwartz sold BSC to JP Morgan, he was later confronted by an angry Sr. Trader at the company gym. The information about Alan Schwartz I got was under his name on Wikipedia.
Here's some trivia:György Schwartz is George Soros' real name. Is there any relation between George and Alan Schwartz per chance? Do they know eachother? Blood relatives? Relatives by marraige? Did Alan Schwartz oversee the company just to make sure it crumbled? I'm rushing to conclusions, however without a real investigation we have no story.
Beginning during the Clinton administration, every piece of legislation that should've prevented the greatest financial scandal in the history of the world was altered with "loopholes" so that it was enabled.
Evidence#1: the Commodities Futures Modernization Act allowed the subprime derivatives to be "regulated" by the Commodities Futures Trading Commission- another useless bureacracy that is not the SEC. Republicans Gramm, Leach and Bliley wrote this mess up. This happened at the same time when Clinton wrote NAFTA with China. The subprime market, or "housing" was the economy. The subprime credit was the "money supply" that replaced cash that was going disappearing to China (and other countries) in a trade deficit.
Evidence#2: Regulation Sho enacted too conveniently in 2005 created loopholes that enabled traders to make naked short sales against Bear Stearns.
Evidence#3: Bernanke lowered interest rates in 2004 when the economy looked good ($14 trillion GDP) to push the sale of ARM loans. When the economy is good, the Federal Reserve traditionally raises the Federal Reserve Rate to prevent inflation and lowers inflation (cheaper credit) to stimulate the economy. Lenders got their financing inventory by selling subprime derivatives to investors.
Evidence#4: Robert Rubin, Clinton's former Treasury Secretary Opposed regulation of credit swaps; fought to overturn Glass-Steagall Act, leading to creation of Citigroup, where he later made $115 million
Evidence#5: The Commodities Futures Trading Commission overlooked counterfeit subprime assets (that taxpaers were forced to give value to, to bail the banks out).
***OUR GOVERNMENT IS AN ACCOMPLICE AND THE ENABLER TO THIS CRIME.***
Yes they have probably taken bribes from lobbyists, including banks to write these loopholes in. Rubin made money from his crimes in direct investments. He also went to work for Citigroup. Where does his loyalty lie?
Not one CEO or individual involved with this mess was investigated, put on trial or thrown in jail for fraud, conspiracy and grand larsony (theft-heist-mobbing-robbery). Yet the Bernie Madoffs, Ken Lays, Raj Rajaratnam and others are busted for insider trading in high profile crimes. Yet Sandy Weill, Phi Gramm, Joe Cassano, Robert Rubin, Ben Bernanke, Alan Greenspan, Jimmy Cayne, Chris Cox, Angelo Mozilo, John Thain, Dick Fuld, Ken Lewis, Lloyd Blankfein and others have not been tried for this unspeakable act. The unsecured subprime derivatives and naked short selling (without delivering the stocks) is counterfeit. It's fraud. And this fraud happened in large quantites. Yet no news of a trial.
Infact, Gramm is a VP at UBS AG in the investment division and McCain's economic advisor during the campaign. And Obama turned to Rubin for advice on the subprime collapse.
These officials are in bed with the banks. Many of these people need to be in prison.
Here is more incriminating evidence. Former Treasury Secretary (who served under Ronald Reagan) Dr. Paul Craig Roberts tells Max Keiser that the Treasury Secretary works for the banks.
Chances are that he might be telling the truth. Isn't the TS supposed to take orders from the COC on behalf of the American people? Bernanke lowered interest rates to help lenders push ARM loans in 2004. Who does Bernanke really work for as Federal Reserve Chairman? And why are taxpayers forced to eat losses through Madison Lane LLC?
Here is another question about the lenders who sold subprimes to increase financing activity for these ARM loans;
-the value of the USD dropped below the Canadian Dollar in 2007
-job/population growth dropped. This was bush's "jobless recovery"
-unemployment triggered foreclosures before the subprime collapse happened.
Why were they leaving themselves exposed by selling subprime assets that were not secured? Who came up with the business model that you increase financing inventory backed by counterfeit assets in an economic downturn? How did the Case schilling index determine that we had a "great economy" when the cost of living was over 180 for most of the country? (the cost of living index includes the price of real estate- a fair price is 100).
Now we know why the naked short selling of this incident is a major clue in the greatest financial scandal in the history of the world.
Electric Run on the Banks-According to Rep Paul Kanjorski @ 2:21
Here was a comment made on the video:???"
Please note: Kanjorski had the briefing with Bernanke and Paulson on "15th of September". The event itself, the landslide electronic cash draw, happened on "Thursday"- meaning the preceding Thursday no doubt.
Thus the date and time when those 550 billion $ were being electronically drawn out was Thursday, Sept. 11th 2008, at 11.00 o´clock in the morning.
This is the 7th anniversary of the Terror attacks, to the minute."
There is a paper trail for this which isn't disclosed to the public. In finance, there's a record for everything after the Patriot Act was signed into law. The HUD database knows your occupation, the type of loan you financed your mortgage with, whether or not it was your primary/secondary occupation, etc. The brokerages need the same information that's on your driver's license to invest for some reason- this is especially true if you're holding a tax deferred retirement account at a trust firm/brokerage. The people who trade with subprime assets may not be as transparent, but somebody has access to this information.
What's even more frightening, is that now China has us by the balls with their derivative default stance. And Geithner told the American people to watch our money habits. Gees Geithner, it was Goldman Sachs who were trading bubble gum wrappers. Many of us don't really have money to manage.
We have bad blood running our country with antagonism, division, a bad economy & propoganda.
Per George Carlin,
""They don't want ppl smart enoughRIP.
to figure out how bad they're getting fucked by a system that threw them overboard 30 yrs ago. They want obedient workers 2 passively accept shittier jobs...REDUCED benefits, and VANISHING PENSION that disappears the minute you go to collect it.
AND NOW, they're coming for your social security to give to their criminal friends on Wall Street. And, you know something, THEY'LL GET IT! ~G Carlin"