D: Uh-hmm.
BB: Draper Fisher brags that they get 12,000 business plans submitted to them a year.
D: Wow.
BB: How many do they fund? Fifteen.
D: Hmm.
BB: Now does that mean that those other, of the other plans left that they didn't fund that there were no credible ideas, no creative force? You'd have to then remember what happened with Bill Gates when he founded Microsoft. I heard every slander he could have directed at him by the very people. There's no new slanders in the short selling arena. Dates with a college dropout. This guy's never gonna beat IBM. Yada, yada, yada. Okay? Larry Ellison, Larry Ellison's a lunatic. He can't be trusted to go to the bathroom by himself. Okay? He'll never build a company. Well let me tell you something, 60% of all the millionaires in this country didn't graduate from high school. 60% of all millionaires in this country have been bankrupt not once but twice.
D: Ben Franklin went bankrupt five times.
BB: Five times. Could I tell you something? If they tried to screw around with the fundamental economics of the American entrepreneurial architecture. And the entire, and to try to destroy the capital formation process as it's existed for, you know, a hundred years for small public companies. Okay. They're gonna destroy the small company job formation process. Now one statistic that they never like to hear be bandied about is the Fortune 1000 in the last four years has dematerialized 40 million jobs. Where do the jobs come from that, to replace the jobs liquidated by the major companies from the small public company arena? Any politician who ever has the nerve to say this to me is gonna get it shoved down his throat. It's economic illiteracy. And I say this to you because you know, this is a passionate issue. They want to, they want to screw around with this, they better be ready to take the personal, not institutional, but personal responsibility for the destruction of American capital markets for small public companies.
D: Hmm.
BB: So. This is a hot button for me so.
D: Well I understand. But I'm, I am, I'm such an incredible proponent for the small business, the small businessman. Not even so much into the public arena, but-
BB: All small public, all small companies, you bet.
D: Yeah, when a little restaurant opens up in my neighborhood and I go in and I meet the mom and pop, or the young couple that are starting it, I know how difficult it is to start a business and to be successful and to be profitable. So not only do I give them my business, but I tell my friends. I mean, that kind of, that's the way I was raised.
BB: Could I tell you something?
D: Sure.
BB: That's the story of Kentucky Fried Chicken.
D: Oh really?
BB: Harlan Sanders started Kentucky, was a twice bankrupt food product salesman. You know, this is a food processing product salesman. He came up with the concept of Kentucky Fried Chicken cooked in this, you know, pressurized steamer. He was on the US Highway 25, which was the main road from Chicago to Florida that people drove down every, you know, winter. He opened up his first store with his first social security check at age 65. The rest was rote.
D: He was 65 when he opened it?
BB: 65 when he opened the store that he finally got the equation right on.
D: Well I tell you what, after Greenspan's comments this morning a lot of 65 year old people are gonna have to start opening some kind of business.
BB: That's right.
D: Because the government is getty ready to rob everybody of their retirement. And I am, I was so upset this morning when I read those comments. I mean, you know, people have worked all of their lives. Lived the American Dream. Did the right things. You know, went to work, paid their taxes -
BB: Put their money away.
D: Put their money away. Yeah. All the things that good Americans should do. They finally reach the golden years, retirement. And the government snatches it out from under them. I'm up, now I've still got a ways to go to retirement. I'm only 47. I was one of the latter day baby boomers. But the first baby boomer retires next year.
BB: I could tell you right now that they're messing around with the found, causing a revolution in this country. You know, I look at what Greenspan did. What he did in loosening money out to the 2001 World Trade Center event was genius. It's the only reason we haven't been through a 30's style depression in this country. But having said that, the world elitist financiers do not believe that America should be allowed to be so dominant financially. This country's economy drives the world. You want a perspective on size? Our economy is ten times larger than the economy of Britain. Ten times. If this country were to stop consuming foreign product, the world would collapse financially.
D: I agree. And -
BB: It'd be worse than, it'd be a worse effect than what happened in `29, cause we weren't the principal consumer of the world's quality products and goods.
D: I mean, there's not a day that goes by on this radio network that I do not remind every listener why this country is as blessed as it is. And how if we're not careful, God can remove his hand and his covering from us just as quickly as he put it underneath us.
BB: Well as I said, you know, my concern is back in 1787 a man named Alexander Tyler wrote a book on the American democracy. And he said in that book, democracies have a lifespan of 200 years. And he's decided that from the Greek examples. And it's, you know, as another great commentator, P.J. O'Rourke said you know, democracy, the government of a democracy must be more than two wolves and a sheep voting on what to have for dinner.
D: I like that. Next question on the list and this may already be in the e-mail that you've sent me. Someone wants to know the link to the transcripts for the recent conference in D.C.?
BB: It is, it's on the nasa.org website. Go into
www.nasaa.org.
D: Okay. And that'll give us a complete transcript?
BB: Yeah. The electronic transcript. So you can pull the link up right there. And eventually there will be, they'll make available written transcripts, I'm sure, for a fee.
D: Okay. Next question. Let's say company XYZ is trading on the OTC at 50 cents a share and has an outstanding share count of 50 million. One day Shorty starts running them into the ground until they are forced onto the pink sheets. This only makes Shorty continue his raid until the stock is .001. Can some insiders or the CEO step in and buy the outstanding shares? Then can XYZ PR they are paying $1 per share as a divident or buyout next week. What would happen and has it ever happened?
BB: To the best of my knowledge, it's never been allowed to happen. There's been repeated instances where companies that were subject to shorting had a potential buyer come to them. And when the buy, transaction was about to be coming through, the SEC would deregister the company, thereby killing the deal. There is an absolute concerted and orchestrated effort to protect the short sellers if things go against them.
D: Why? Why, why are we so determined to -
BB: Again, it's corruption. There's no other answer. I'm afraid that the Americans. You know, American society as a whole, Enron and WorldCom were. Could I tell you they were speed bumps compared to what has gone on in the short selling scandal.
D: Yeah. Are there still any active cases in process against the DTC?
BB: Yes, there are two.
D: Two?
BB: Yeah. And the bottom line is, there will be more. I believe at some point the states themselves will sue them. Because there's, here's the core question. Why should any company be denied the right to access and have knowledge of its investors by name? CD & Co and DTC would block that access. They do block that access. And there's a thing called the customer protection rule in the Securities Acts of `33 and `30. There's elements in `34 too. That say that a company must communicate with its shareholders on a timely basis as part of the regulation of fair disclosure that was implemented in 2000. The bottom line is at this point what has happened is, there's a concerted attack on the rights of shareholders as owners of an asset. They want to be able to give other people the right to counterfeit their shares. To vote shares that don't exist. To deny companies the right to access their shareholders on two corporate communications issues. And it is completely, you know, it stinks to high heaven. And the bottom line is at some point. You know, I stepped away from this on two separate occasions after receiving threats against myself. And I will tell you something. I'm not gonna be threatened again. And not by any nameless, faceless, gutless, you know, scum. This is not gonna happen. But I would tell you something. These people are behaving with this arrogance because someone in the regulatory structure has told them they're getting a pass. And you know what? Those regulators that have been guilty of this are aiding and abetting in the commission of Class B and Class A federal felonies. And they should be facing life in prison. Tricky part about it is you can't. If the American public knew how much money has been stolen from them by how small a group of people. How much money has been stolen from their retirement systems. We would be seeding a revolution in this country.
D: Well my call for a Deep Throat from inside the DTC still stands. I bring it up on the air quite often. And I've yet to have anyone take me up on that.
BB: I would say that you need to keep that call out there. One of the supporters, a former chairman of the DTC, has been a supporter of Wes Christian's. The woman who outed the 341 company survey where they found excess voting rights on all 341 companies of a survey, is a former director of Depository Trust.
D: Hmm.
BB: You got to keep those calls out there. I've talked to former Depository Trust officials who are appalled by what's going on at Depository Trust. They feel it's a, that their entire life's work has been humiliated by these people. And at some point, they can talk about the greater good, but you're dealing with socialist Stalinist analogies. To make an omelet, you have to break a few eggs. That was a Nazareth argument against the certificate only delivery. They had to stop that. They had 300 companies that had applied to go to certificate only delivery. Well you know, their goals of straight through processing and electronic paperless systems was gonna be shot in the head. Well guess what? Is that more important than the fundamental integrity of our system? Hardly. And she was basically making a very condescending, socialist argument. Okay? Which I consider to be un-Christian. And she can say what she wants. But the bottom line is she was saying, well if we have to see a few small public companies be bankrupted because they've been. You know, if that's for the, we may have to allow that to happen for the greater good of straight through processing. This is insanity. You know, and people must stand up on their hind legs. I will say this. I've come to the conclusion that there's enough information out there now that if someone isn't on board with this cause about stopping this abuse.
D: Uh-hmm.
BB: They're not part of the solution. They're part of the problem.
D: I agree.
BB: Open your mouths. The only way we're gonna fix this is through enough people to scream loudly enough, this must stop.
D: I agree. And the solution, or the quickest solution -
BB: God hates a coward. That's my old favorite line.
D: Well you know, it's true. Gideon, Gideon tried to take that route and God wouldn't hear of it. He says you're going to war. Now you made a comment the other day about urban, buying back 700 billion shares of CMKX. Was that a rumor and -
BB: Pure rumor. And he doesn't confirm it. But he says he's no longer the controlling shareholder. This was fed to me yesterday by a former IR person.
D: Okay.
BB: And, like I said, one of the problems CMKX has had is they should've gone reporting. That alone would've outed this entire crisis. But for whatever reason, I think that some of the parties involved in CMKX had managed to, you know, dirty their skirts. And it's a tragedy because the bottom line is, I do believe that eventually people will go to prison over CMKX.
D: Hmm.
BB: But I don't know who. And I sure as hell don't know when. Generally speaking.
D: Uh-hmm.
BB: The SEC and the government take small steps slowly. They're just now, I saw the indictment yesterday. Give you some perspective on timing. They indicted a pump and dump artist who ripped $43 million out of his own company. Dumping shares from offshore accounts he controlled. Somehow they got access to the offshore account information control positions.
D: Uh-hmm.
BB: And when he did it, he took out $43 million. Well they just indicted him for this conduct in `99, 2000.
D: Uh-hmm.
BB: Just indicted him. What's the date today guys? It's November 2005.
D: Wow.
BB: Six years.
D: Well the government is typically slow to move. But I can say this, once they do lock and load, uh, things can happen.
BB: Problem is that the government right now is taking a position that is intended to accomplish two objectives. One is to get the bad guy, great. But you know what they've also done is during that period of time when they conducted their, you know, very slow investigations, the civil rights of the abused shareholders have all expired. The statute of limitations has gone by. Why did they do that? Cause they don't want all the civil suits flooding the federal district courts. This has been a systematic pattern throughout all of these cases. The federal government, you know, typically. I've never seen a federal government investigation take less than two years, unless it's on something like Enron.
D: Uh-hmm.
BB: And like I say to you, all of you. And I say this to every person who listens in on the Christian Financial Radio Network. This is no accident. These things move like molasses because it's serving someone's interest. And the interest they're serving is the court system. Because they are terrified of 5,000 lawsuits coming in over the issue of naked shorting and counterfeiting. The SEC itself. I could break their back. If I had $10 million I'd break their back tomorrow. I'd file 5,000 actions in 400 courts nationally.
D: Uh-hmm.
BB: I'd start Appeals Court actions. You know, cause the Circuit Courts. And the bottom line is that, you know what? The whole system would lock up. These guys don't have the capacity or the technical skills to process that kind of paper. These guys aren't IBM. They're not Microsoft. Okay? Microsoft if, you know, look at the attack. More money by a factor of ten has been spent by the government for suing Microsoft than was spent pursuing Osama bin Laden.
D: Well now that is an interesting point.
BB: Okay? So where are their priorities? Well the only people, there's only one group of people who can change their priorities and that's the people who've been the victims of having their retirement accounts raped. And I say that with absolute focus.
D: So a two point plan. File the suits and request your certificates
BB: Correct. You have no choice. But if you don't get your certificate, you're playing into the hands of the scum.
D: Hmm. Now another question. I understand that the comment about CMKX trying to get a settlement for the shareholders is fear they will lynch Urban or something similar was your opinion. And the listener is asking the question, do you know Urban? If so, do you think that he would need this kind of prodding? He has a reputation with his shareholders of wanting to do the right thing. And since we don't ever get any news, people tend to hang on every word. And this listener just wanted to know if you could maybe clarify that?
BB: I do not know Urban. I have never spoken to anyone connected to him, except the former IR for the company. When I was at, he got my number. He was given my number actually by Dr. Jim DeCosta.
D: Oh, Dr. D. Yes. I've have him on the show before.
BB: Dr. Jim is very knowledgeable. And he's very commercial. He's not really interested in doing this unless he gets paid for it. I've, bluntly I have to take the same approach. At age 59 I don't have a lot of pro bono time to give anybody.
D: Yeah. Cause they're getting ready to steal your retirement from you.
BB: Yeah, exactly. And the point I'm trying to make to you all is that, you know, there's an old line. If it walks like a duck and it quacks like a duck and it looks like a duck, it's probably a duck. Okay? I say to all of you. Okay, you have to be not only skeptical, but demanding. I'm not saying that CMKX doesn't have assets. I don't think Roger Glenn was sent into the company by Citi Group to determine whether or not there were assets. He just wanted to know how big the assets were. But I could be wrong. You know what? There's been so many lies told by so many people here. That there are people including me, you know, just say step away. And that doesn't mean I don't believe in the CMKX shareholders and the community. But, you know, you guys have got to be looking at life after CMKX. I mean, to allow yourselves to be diasporaed out to the rest of the world and stop talking to one another would be a bigger tragedy than CMKX, you know, whether it lives or dies.
D: Well I had a listener this morning, or someone in our live trading room. They uh, they said because of what's transpired, they're never gonna put another dime into the markets.
BB: Yeah, could I tell you that I've heard that hundreds of times. American investor confidence has been decimated. And the tragedy is, many of the, you know, you don't know this. But the friends and family round, first round when you weren't, the companies weren't even eligible for venture capital is what has caused all these companies you depend upon today to be formed. Bill Gates got his original money. My God, you know, his original funding was 25 grand. It came from friends and family.
D: What a wonderful story that is.