Crash Course ripoff?
Looks like the folks at Deepcapture.com have been watching the Crash Course. Here’s a presentation by them on Naked Short Selling. It has some cheesy dramatic sound effects, but it’s important info.
I think this was a very effective way to present the information and I can only hope I was in some way a small inspiration to the method of delivery.
Kudos to Deepcaster on this one!
PS – I consider the information in the link above to be required ‘reading’ for anyone who still harbors some notion that US equity markets are in some way free, fair, or well regulated. They are not. They have long been the personal playgrounds of the well-connected and the deck is heavily stacked against small investors. Remember, all those billions siphoned out have to come from somewhere…they do not magically appear as a function of "capital appreciation". While the inflationary tide is rising all this can be camouflaged by an illicit flood of money. When the tide falls, as is the case now, there’s not enough to go around and little investors are left to gape at their shredded 401Ks and wonder what happened.
If poker is more your thing, then the saying goes like this; "If you don’t know who the patsy is at the table, it’s you." Sorry if that seems a bit harsh and overly cynical but that’s the view I’ve developed after reading a lot of history and being an active market observer for some time.
Holy Cow! What a fantastic video! Not only was the content superb, but the video production (delivery) was very effective as well.
Thanks ytterbius for posting it.
Chris, if you were on the inside of the system on Wall Street, it is no wonder you got out!
Based on these assumptions, how on earth would a "small" public company ever survive?
One that comes to mind, is "thin film" PV – solar panels. No wonder a company like Nanosolar isn’t going public!
FWIW – C.
Thanks for sharing!
What Does Naked Shorting Mean?
The illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock, or determine that it can be borrowed, before they sell it short. But due to various loopholes in the rules and discrepancies between paper and electronic trading systems, naked shorting continues to happen.
While no exact system of measurement exists, most point to the level of trades that fail to deliver from the seller to the buyer within the mandatory three-day stock settlement period as evidence of naked shorting. Naked shorts may represent a major portion of these failed trades.
Today, a friend of mine wanted to short BAC, when he called his broker, they had no shares of BAC to short. So he could not short BAC. This is the legal way to short a stock, the shares have to be there to back it up.
One can always buy puts if they believe the price of a company’s stock will go down. Buying puts does not affect the price of a company’s stock the way shorting it does.
Okay, so aside from downward price pressure from short selling – an ethical issue (or not) for some traders, naked shorts, or selling naked puts and/or calls is quite legal.
Cat and I only do naked options which as she mentioned, does not drive the price of the underlying equity like short selling does.
Provided the trader has sufficient cash or equity holdings to cover the amount of the short, many brokerages will allow the trade even if the trader doesn’t hold the stock.
Is this manipulative? No doubt, but the rules are out there, however murky, and until they change one should be aware of these market forces.
The market is a war zone and you MUST understand that before you show up for the fight.
A studied, well informed and disciplined “little guy” trader can (and we do) realize the same if not better returns than the mondo houses.
Of course the big houses are getting 20% on a million dollar trade, and the little guy is getting the same 20% on a $2000 trade.
I’m happy with $400 profit per trade.
For now that is…..