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Message
What is Naked Shorting and why should it make us worry?
Posted on 9/21/22 at 7:33 am
Posted on 9/21/22 at 7:33 am
5
Posted on 9/21/22 at 7:34 am to GhostOfFreedom
You can't do it without credit and/or collateral.
Posted on 9/21/22 at 7:39 am to GhostOfFreedom
I was expecting something very different here as I thought it said "Naked Shortening" .
Posted on 9/21/22 at 7:40 am to TrueTiger
quote:
You can't do it without credit and/or collateral.
The problem is that institutions are doing this supposed illegal thing without consequence. Do you think Gary Gensler will come after these large hedge funds and institutions? Hell no - he probably was a member of the same fraternity of the executives and leaders at these funds. The SEC will come after Joe Shmoes, people who get a lucky break and win a "YOLO" bet on GameStop and other meme stocks.
The IRS is the same way. Do they go after billionaires? Hell to the no. They go after households making less than 50k per year and nickel and dime them for any violations. But I digress.
And on top of that, they are shorting more than the available amount of shares available - perfect example is the Gamestop (GME) Saga.
Let's hypothetically think about this for a second and extend upon this to other stocks in the market, and let's say a institution with a large cash pile (in the trillions like BlackRock), can be hypothetically compromised from a political perspective (ESG anyone?), and commence naked shorting on any one or various stocks. You now have a potential scenario where the markets can be manipulated by moving share prices sans any kind of fundamental rationale.
This is why I have said in the past that Wall Street has become weaponized but it appears the majority of folks still have their head stuck in the sand. Do you think the Central Banks, i.e. The Fed are on your side? Think again.
This post was edited on 9/21/22 at 7:47 am
Posted on 9/21/22 at 7:41 am to TrueTiger
quote:
You can't do it without credit and/or collateral.
Sure you can. You really think there is enough collateral to cover all the naked shorts that are spread across the market today?
I guess if you turn on the Fed money printer. correction, give the Fed money printer a new stronger more potent steroid.
Posted on 9/21/22 at 7:44 am to GhostOfFreedom
It's been going on a long time.
You fight back like the WallStreetBets group on reddit did with GME and bankrupt the hedge funds that are participating in this.
You fight back like the WallStreetBets group on reddit did with GME and bankrupt the hedge funds that are participating in this.
Posted on 9/21/22 at 7:45 am to the_truman_shitshow
quote:
can be hypothetically compromised from a political perspective
There are a lot of companies and wealthy who seem to do stupid political things. Having other companies threaten to naked short the hell out of them or their investments might be one explanation.
Taking your small company public seems like a very bad move with the way Wall Street is compromised. imho
Posted on 9/21/22 at 7:47 am to GhostOfFreedom
quote:
Taking your small company public seems like a very bad move with the way Wall Street is compromised
Relevant:
"It's one big club and you ain't in it."
Posted on 9/21/22 at 7:50 am to TrueTiger
quote:
You can't do it without credit and/or collateral.
Of course you need a big chunk of money like a hedge fund would have to the get the ball rolling. They take advantage of the settlement time. They borrow and buy before the stock settlement date is complete and start the cycle over and continue to build more phantom shares and continue to put selling pressure on the stock with well timed sells, herding other shorts, market manipulation and paying media to run bad stories.
Posted on 9/21/22 at 7:52 am to the_truman_shitshow
quote:quote:
Taking your small company public seems like a very bad move with the way Wall Street is compromised
Relevant:
"It's one big club and you ain't in it."
It's one of the main reason two of the biggest private companies in the world never when public, Cargill and Koch Industries.
Posted on 9/21/22 at 7:53 am to GumboPot
I have no illusions about the existing risk it presents.
But, if you remove that risk, markets will become more illiquid and inefficient. Cost will go higher when risk is removed.
Posted on 9/21/22 at 7:54 am to GhostOfFreedom
It's a tool that the wealthy and political elite use to keep others out of their club and broaden the gap between them and everyone else.
But keep on thinking that the real issue is left vs right.
But keep on thinking that the real issue is left vs right.
Posted on 9/21/22 at 8:06 am to TrueTiger
quote:
You can't do it without credit and/or collateral.
BS. They don’t liquidate the accounts of the hedge funds who naked short. They even suspend buying to help the shorts get out of their position while causing retail to lose.
This post was edited on 9/21/22 at 8:08 am
Posted on 9/21/22 at 8:12 am to the_truman_shitshow
quote:
The SEC will come after Joe Shmoes, people who get a lucky break and win a "YOLO" bet on GameStop and other meme stocks.
Not happening now. Doesn't happen often enough but when it does, you can bet your arse they will.
quote:
The IRS is the same way. ... They go after households making less than 50k per year and nickel and dime them for any violations.
No, they don't. 50k per year is abject poverty. Just pay your taxes. Don't try to get over. You'll never get audited. If you don't like your taxes, get involved in local politics and change that shite.
I would highly recommend investing in land and avoiding stocks and other speculation (unless you are fully prepared to accept all consequences).
Live simple, don't loudspeaker it if you're doing something even slightly below board and you'll never attract any unwanted attention.
Posted on 9/21/22 at 8:21 am to GumboPot
quote:
You fight back like the WallStreetBets group on reddit did with GME and bankrupt the hedge funds that are participating in this.
Didn't those amatuers have their trades halted and reversed so as not to kill the hedge funds?
Posted on 9/21/22 at 8:35 am to GhostOfFreedom
quote:
What is Naked Shorting and why should it make us worry?
Posted on 9/21/22 at 8:41 am to GhostOfFreedom
quote:
Sure you can. You really think there is enough collateral to cover all the naked shorts that are spread across the market today?
You have to have credit and be authorized to short on all the trading platforms I've used. Regular traders (at last checking probably a year ago) had to be authorized to short stocks via credit. Perhaps that has changed.
Posted on 9/21/22 at 8:43 am to LSUFanHouston
quote:
It's a tool that the wealthy and political elite use to keep others out of their club and broaden the gap between them and everyone else.
The concept of the market is brilliant. In theory it allows for the most efficient means of providing capital to worthy businesses and punishing inefficient management groups through quick and substantive feedback.
The problem is that since the Wilson administration it’s been controlled by central banks and the entities that run them.
The boom/bust cycle isn’t a bug, it’s a feature and now with a million different ways to pick winners for those who control the money supply it doesn’t differ much from the roulette table in Vegas.
Bad businesses are propped up via government handouts, markets that should boom are hindered by government regulations designed to choke out small businesses and markets that should bust are artificially inflated through the printing of fiat currency thats primary value is that it’s pegged to the price of oil (which is of course being phased out, draw your own conclusions here).
The best argument for investing as a small time interest is that over time it’s always historically gone up over a broad time horizon, but no one with a straight face can say that the game itself is fair or that the central bankers can’t pick winners.
Posted on 9/21/22 at 8:51 am to tide06
quote:
The concept of the market is brilliant. In theory it allows for the most efficient means of providing capital to worthy businesses and punishing inefficient management groups through quick and substantive feedback. The problem is that since the Wilson administration it’s been controlled by central banks and the entities that run them. The boom/bust cycle isn’t a bug, it’s a feature and now with a million different ways to pick winners for those who control the money supply it doesn’t differ much from the roulette table in Vegas. Bad businesses are propped up via government handouts, markets that should boom are hindered by government regulations designed to choke out small businesses and markets that should bust are artificially inflated through the printing of fiat currency thats primary value is that it’s pegged to the price of oil (which is of course being phased out, draw your own conclusions here). The best argument for investing as a small time interest is that over time it’s always historically gone up over a broad time horizon, but no one with a straight face can say that the game itself is fair or that the central bankers can’t pick winners.
Brilliantly stated.
Posted on 9/21/22 at 9:00 am to the_truman_shitshow
quote:
The IRS is the same way. Do they go after billionaires? Hell to the no.
I know a few high net worth individuals and am familiar with some of their tax strategies. These guys never cheat. It is extremely rare for an 8 figure millionaire to cheat on his taxes.
Their income is reported, and their taxes are calculated, by CPAs that work for KPMG, Deloitte, etc. These CPAs sign the tax returns, and they are the ones who will be punished if fraud is perpetuated. The wealthy taxpayer usually just signs a tax return which he does not understand.
There are grey areas. But these grey ares can only be exploited if a CPA thinks the facts militate toward a favorable outcome. The IRS does, in fact, audit these people, and they do, in fact, rule against them in some of these cases. They don’t turn into criminal cases because they are grey areas.
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