Post by jannikki on Nov 23, 2006 22:54:42 GMT -4
It's The End Of The World As We Know It
Location: Blogs Bob O'Brien's Sanity Check Blog
Posted by: bobo 11/23/2006 10:40 AM
------------------
Sign the Market Reform Petition Now!: View it here.
www.petitiononline.com/mrktrfrm/petition.html
------------------
Everyone should take out a moment to read the following two spreadsheets from the Securities Industry Association, wherein the NYSE tallies up its liabilities and assets, per that body's requirements.
Spreadsheet one is the latest, for Q2, 2006.
www.sia.com/research/other/NYSEFirmsTotals.xls
Spreadsheet two are the totals for the last 5 years.
www.sia.com/research/other/qrt_res.xls
Note that the total FTD's for Q2, 2006 are $27.7 billion, and the FTR's are $35.4 billion. That's a lot more than the $6 billion the SEC and DTCC use as their total to describe the size of the problem, huh? Like ten times as large, JUST ON THE NYSE?
And that is marked to market. The actual cost to buy it in would be more like 10 times that.
So a $60 billion problem - not adjusted for the actual buy-in cost, which could easily be more like $600 billion - not a $6 billion problem.
No wonder the SEC's number one job is to prevent short squeezes. Where would all that money come from to cover what had been STOLEN from the system? It's all gone now - paid out in big bonuses we read all about in the WSJ every year. It isn't in the system anymore. It has been taken, and the asset it was exchanged for never delivered.
What else has the DTCC lied to us about? The SEC?
How about the following: look at the repo agreement column - $1.879 TRILLION.
Reg SHO has a loophole for repo agreements - if you have a repo agreement, which is basically a contract to buy back the shares you sold, you don't have to report the sale as a short sale, as you are still considered long, as is the new buyer, who can then sell them again, execute a repo agreement, and also be long as well.
It's a handy way to use the same million shares over and over and over again to sell into the market, never reporting your sales as short sales, but depressing the price of the targeted stock as a virtually unlimited amount of stock hits the demand.
That would be almost $2 trillion of repo agreements.
So let's all, on this Thanksgiving day, wonder aloud how $63 billion of FTDs and FTRs can possibly be reported as $6 billion of the same animal (unless these are pre-netting amounts, which would make sense - if $6 billion is post netting, and netting equals 96% of all trades, then one would expect the fails to be ten or more times as large, pre-netting - echoing what I've been patiently saying all along about netting and how it conceals the true size of the problem).
And recall that the $63 billion is actually more like multiples of that amount at the original sale price of the stock - the current market value represents the newly depressed price, not the actual sale price. So that is many times larger in actual dollars into the pockets of the scumbags who are taking that money from investors, and taking it out of the system to pay big bonuses and buy Picasso's and whatnot.
And then further think about what that $1.8 trillion of repo agreements means - what percentage of that represents promises to buy back that will never be executed, or better yet, represent a portion of the "ex-clearing" problem?
Most of it? Half?
This is all just for the NYSE. The NASDAQ is likely much larger. And the OTCBB, and the AMEX, and......
I have been mocked as an alarmist by the apologists who claim there is no systemic risk issue, no problem to be really really worried about.
Here we have documented evidence that my most dire predictions have been the tame version.
The system is stealing a percentage of the GDP every year via failing to deliver products. I would guess it runs around $500 billion to $1 trillion every year.
That is a massive theft of the nation's worth by a small segment of the population.
Now, for those who would argue that based upon the trillions traded every year, that hundreds of billions isn't a big deal, let's put that into perspective.
What if hundreds of billions of bank deposits were missing every year? Would you cite the total deposits of the US banking system, and argue that $500 billion to a trillion every year isn't a big deal?
What about if this was the blood supply? If your regulators and government were telling you that supply was safe, and then you found that it was HIV infected to the tune of 10, 20, 30% every year, would that be acceptable?
Folks, this is simple. You have been lied to by an enormously powerful system that requires your complacency and apathy to continue to steal what you worked all your lives to save.
This isn't an issue of being a bad investor, and picking bad investments. This is an issue of hundreds of billions of your dollars being stolen by thieves, just as surely as they would be stolen if they held a gun to your head.
The big lie is that your investment losses are your fault, and sort of deserving of shame and silence. Here is documented evidence that much of it is clearly money stolen by those who sell, and then don't deliver - a massive, coordinated effort involving most of the trusted entities who trade the markets on YOUR behalf.
Do you understand the difference between investing in a house in the wrong neighborhood, and being carjacked & having your wallet taken? Yes? No?
The apologists bang the "it's a bad company" drum to foster this belief in you - that you are a degenerate gambler deserving of what you get. What they won't do is address the very large, very obvious numbers you now have in your possession. Because that shows the amount they are flat out stealing. And they don't want to acknowledge the reality of the numbers.
Please send this column, as well as the links, to Specter for his December 5th hearing, as well as to every journalist you think would be able to read a spreadsheet. This is not a small problem. It is massive, involves the very government you pay to protect you, and is the systematic theft of the nation's savings on an unprecedented scale - and it can only end in a global depression of epic proportions, when the system decides there is nothing left worth stealing.
It's up to you to stop it now. You have the real numbers. Do something.
It will be interesting to see whether any journalists will even get near this now that it is blown wide open. You think Carol Remond, who has written so many "it's a small problem" articles will admit to misrepresenting the whole thing? Think that the Motley Fool will admit that their "ban" on discussing the issue is a blatant censorship attempt to stop anyone from knowing how big this is?
The numbers don't lie. $63 billion on the NYSE alone in Q2, at mark to market valuation, not counting the percentage of the $1.8 trillion of repo agreements that serve to mask another layer of this onion.
Folks? This is not a small problem.
What we have here is a mega, systemic-meltdown-scale problem caused by the brokers treating the markets like their own private piggy bank, from which they can take money and leave IOUs, to be tossed when they've driven the companies to zero. And our regulators, our elected officials, and our media have completely failed us. They have one and all colluded to facilitate the theft of OUR MONEY, and are now scrambling as the size of the theft becomes apparent.
De-materialization is just the final effort to destroy any asset rights you have, so they can conveniently turn the entire market system into a Federal Reserve type of scam, wherein assets don't back the chits you are paying for, but rather the "good name" of the broker does - and his name stinks to high heavens and isn't worth the spit it would take to put him out if he was on fire. Unlike the Fed's guarantee that the currency they distribute is backed by the full credit of the US Government, the guarantee you are getting is that your IOU is backed by the ability of your broker to trick enough new rubes out of their money to make good when you need out of the scam. The guarantee isn't worth squat. It is a sham, and is expressly forbidden by the 1933 and 34 Acts - for very good reason.
Starting to get this now?
Any facile smirking dismissals from the apologists? Any 'lilGW "there is no big problem" paid idiocy to try to feed to the masses? No? Nobody wants to chitty chat about tens or hundreds of billions failed, in black and white, on a spreadsheet prepared by the association that is also lobbying to change nothing about Reg SHO?
I hope everyone completely appreciates how coordinated this all is, how every strata of the entities chartered with ensuring this never happens have instead worked to obfuscate and misstate what has been going on.
Please propagate this blog to every message board and blog you can think of. No smoking gun required anymore - we have the actual data now, and it should scare the hell out of anyone that can read.
It is way worse than anyone ever was willing to admit. And now we can prove it.
They've stolen a lot of our retirements, and concealed the theft by lying and promising that the cash or the stock will be there when we check, or need it.
Guess what? They lied. It isn't.
And now it is absolutely obvious to even the dimmest.
Copyright ©2006 Bob O'Brien
thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/533/Default.aspx
Location: Blogs Bob O'Brien's Sanity Check Blog
Posted by: bobo 11/23/2006 10:40 AM
------------------
Sign the Market Reform Petition Now!: View it here.
www.petitiononline.com/mrktrfrm/petition.html
------------------
Everyone should take out a moment to read the following two spreadsheets from the Securities Industry Association, wherein the NYSE tallies up its liabilities and assets, per that body's requirements.
Spreadsheet one is the latest, for Q2, 2006.
www.sia.com/research/other/NYSEFirmsTotals.xls
Spreadsheet two are the totals for the last 5 years.
www.sia.com/research/other/qrt_res.xls
Note that the total FTD's for Q2, 2006 are $27.7 billion, and the FTR's are $35.4 billion. That's a lot more than the $6 billion the SEC and DTCC use as their total to describe the size of the problem, huh? Like ten times as large, JUST ON THE NYSE?
And that is marked to market. The actual cost to buy it in would be more like 10 times that.
So a $60 billion problem - not adjusted for the actual buy-in cost, which could easily be more like $600 billion - not a $6 billion problem.
No wonder the SEC's number one job is to prevent short squeezes. Where would all that money come from to cover what had been STOLEN from the system? It's all gone now - paid out in big bonuses we read all about in the WSJ every year. It isn't in the system anymore. It has been taken, and the asset it was exchanged for never delivered.
What else has the DTCC lied to us about? The SEC?
How about the following: look at the repo agreement column - $1.879 TRILLION.
Reg SHO has a loophole for repo agreements - if you have a repo agreement, which is basically a contract to buy back the shares you sold, you don't have to report the sale as a short sale, as you are still considered long, as is the new buyer, who can then sell them again, execute a repo agreement, and also be long as well.
It's a handy way to use the same million shares over and over and over again to sell into the market, never reporting your sales as short sales, but depressing the price of the targeted stock as a virtually unlimited amount of stock hits the demand.
That would be almost $2 trillion of repo agreements.
So let's all, on this Thanksgiving day, wonder aloud how $63 billion of FTDs and FTRs can possibly be reported as $6 billion of the same animal (unless these are pre-netting amounts, which would make sense - if $6 billion is post netting, and netting equals 96% of all trades, then one would expect the fails to be ten or more times as large, pre-netting - echoing what I've been patiently saying all along about netting and how it conceals the true size of the problem).
And recall that the $63 billion is actually more like multiples of that amount at the original sale price of the stock - the current market value represents the newly depressed price, not the actual sale price. So that is many times larger in actual dollars into the pockets of the scumbags who are taking that money from investors, and taking it out of the system to pay big bonuses and buy Picasso's and whatnot.
And then further think about what that $1.8 trillion of repo agreements means - what percentage of that represents promises to buy back that will never be executed, or better yet, represent a portion of the "ex-clearing" problem?
Most of it? Half?
This is all just for the NYSE. The NASDAQ is likely much larger. And the OTCBB, and the AMEX, and......
I have been mocked as an alarmist by the apologists who claim there is no systemic risk issue, no problem to be really really worried about.
Here we have documented evidence that my most dire predictions have been the tame version.
The system is stealing a percentage of the GDP every year via failing to deliver products. I would guess it runs around $500 billion to $1 trillion every year.
That is a massive theft of the nation's worth by a small segment of the population.
Now, for those who would argue that based upon the trillions traded every year, that hundreds of billions isn't a big deal, let's put that into perspective.
What if hundreds of billions of bank deposits were missing every year? Would you cite the total deposits of the US banking system, and argue that $500 billion to a trillion every year isn't a big deal?
What about if this was the blood supply? If your regulators and government were telling you that supply was safe, and then you found that it was HIV infected to the tune of 10, 20, 30% every year, would that be acceptable?
Folks, this is simple. You have been lied to by an enormously powerful system that requires your complacency and apathy to continue to steal what you worked all your lives to save.
This isn't an issue of being a bad investor, and picking bad investments. This is an issue of hundreds of billions of your dollars being stolen by thieves, just as surely as they would be stolen if they held a gun to your head.
The big lie is that your investment losses are your fault, and sort of deserving of shame and silence. Here is documented evidence that much of it is clearly money stolen by those who sell, and then don't deliver - a massive, coordinated effort involving most of the trusted entities who trade the markets on YOUR behalf.
Do you understand the difference between investing in a house in the wrong neighborhood, and being carjacked & having your wallet taken? Yes? No?
The apologists bang the "it's a bad company" drum to foster this belief in you - that you are a degenerate gambler deserving of what you get. What they won't do is address the very large, very obvious numbers you now have in your possession. Because that shows the amount they are flat out stealing. And they don't want to acknowledge the reality of the numbers.
Please send this column, as well as the links, to Specter for his December 5th hearing, as well as to every journalist you think would be able to read a spreadsheet. This is not a small problem. It is massive, involves the very government you pay to protect you, and is the systematic theft of the nation's savings on an unprecedented scale - and it can only end in a global depression of epic proportions, when the system decides there is nothing left worth stealing.
It's up to you to stop it now. You have the real numbers. Do something.
It will be interesting to see whether any journalists will even get near this now that it is blown wide open. You think Carol Remond, who has written so many "it's a small problem" articles will admit to misrepresenting the whole thing? Think that the Motley Fool will admit that their "ban" on discussing the issue is a blatant censorship attempt to stop anyone from knowing how big this is?
The numbers don't lie. $63 billion on the NYSE alone in Q2, at mark to market valuation, not counting the percentage of the $1.8 trillion of repo agreements that serve to mask another layer of this onion.
Folks? This is not a small problem.
What we have here is a mega, systemic-meltdown-scale problem caused by the brokers treating the markets like their own private piggy bank, from which they can take money and leave IOUs, to be tossed when they've driven the companies to zero. And our regulators, our elected officials, and our media have completely failed us. They have one and all colluded to facilitate the theft of OUR MONEY, and are now scrambling as the size of the theft becomes apparent.
De-materialization is just the final effort to destroy any asset rights you have, so they can conveniently turn the entire market system into a Federal Reserve type of scam, wherein assets don't back the chits you are paying for, but rather the "good name" of the broker does - and his name stinks to high heavens and isn't worth the spit it would take to put him out if he was on fire. Unlike the Fed's guarantee that the currency they distribute is backed by the full credit of the US Government, the guarantee you are getting is that your IOU is backed by the ability of your broker to trick enough new rubes out of their money to make good when you need out of the scam. The guarantee isn't worth squat. It is a sham, and is expressly forbidden by the 1933 and 34 Acts - for very good reason.
Starting to get this now?
Any facile smirking dismissals from the apologists? Any 'lilGW "there is no big problem" paid idiocy to try to feed to the masses? No? Nobody wants to chitty chat about tens or hundreds of billions failed, in black and white, on a spreadsheet prepared by the association that is also lobbying to change nothing about Reg SHO?
I hope everyone completely appreciates how coordinated this all is, how every strata of the entities chartered with ensuring this never happens have instead worked to obfuscate and misstate what has been going on.
Please propagate this blog to every message board and blog you can think of. No smoking gun required anymore - we have the actual data now, and it should scare the hell out of anyone that can read.
It is way worse than anyone ever was willing to admit. And now we can prove it.
They've stolen a lot of our retirements, and concealed the theft by lying and promising that the cash or the stock will be there when we check, or need it.
Guess what? They lied. It isn't.
And now it is absolutely obvious to even the dimmest.
Copyright ©2006 Bob O'Brien
thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/533/Default.aspx