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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (88213)	11/22/2004 9:07:51 AM
From: magicrecall	Read Replies (2) \| Respond to of 122087

I know many. They are clients of people I know personally, or people I have gotten to know in this eight year investigation. Naked and other illegal insider based shorting stripped billions in cash out of the equity markets in the very orchestrated 2000 Crash (bigger on a percentage basis than the 1929 Crash), with much of it going offshore. And equity markets weren't the only thing being shorted. Do you know how to short a bond or a physical? It is no problem. I was an equity, bond, derivative and arbitrage trader for major firms and clients for more than 15 years, and I taught arbitrage and technical trading for more than 10 years internationally to the professional markets and exchanges. Elgindy had 250 to 260 Hedge Funds involved in his site at the top by his claims, probably controlling several hundred billions of dollars. You speak of him only having 1000 to 2000 share positions in some stocks. What did the collective group of his clients as a whole have short in a target company? And what about related market makers? How did they get the shorts on and how did they avoid buy-ins or margin calls? One major market maker firm huge in shorting was acquired by a major firm whose senior management I knew. When I got through briefing them on that market maker's shorting and the coming crisis, they cut the number of stocks they made markets in by 75% total, and stopped "flipping" to avoid fails. Ask a technician to explain "On Balance" volume to you. When you see a company trade 10 times the number of shares in its float, or 3 times its outstanding shares, in ten days, what you know is that naked shorts have created "counterfeit longs" for a significant portion of that trading. That is reinforced when you find yourself unable to identify anyone with a major position who sold stock in the same period. I saw several companies issue stock or other dividends or splits, and get repeatedly presented with demands for more shares than they had outstanding by a double or more. How do you think that happened? A recently released confidential report done for the SEC says that more than 1700 OTC BB stocks are short more than the "threshold" standard, well more than the 4% figure quoted by the SEC as the number of "Threshold" securities. You probably will see my exit post when you log on. In closing, you need to do some technical and practical homework to understand how Pools/Syndicates operate. That is all Elgindy and his friends were at a practical level. In order to really understand this space, you need to have actually traded or made markets in securities in a B-D, have sold or operated settlement systems, have been an officer or director of several public companies, have ran a hedge fund or managed other's money, and understand how regulators do and don't do their jobs. No one here is stupid, they are just uninformed. It is the absence of practical industry experience in the regulatory system that makes it virtually impossible for anyone to get their hands around what has happened. If you take a stock from 20 to 2 on 20 million shares outstanding, someone just lost $360 Million, and someone else just made it. Losses in Market Caps are REAL losses, not "paper" losses. The latter term is a con with no meaning. As I said in my last post, good questions need proper answers. The devil is in the details. Contrary to the generally accepted principal of "Occam's Razor", the simple solution is not the right answer to this apparently complex problem. Rather, there is a complex answer to a very simple problem: How to Stop Thievery through Counterfeiting. You have asked a good question, but YOU need to get a proper answer. If you don't understand what is going on, find out. I leave you all with a classic ministration given to most young traders and investment bankers from the Old Wall Street: "If you walk into a room full of people and you don't see the sucker, You're it." Elgindy had this down, even if he had ethical disconnects. Elgindy wasn't a previously convicted felon by accident. A lot of those on his site were suckers, if that isn't obvious by now. Do they really think they were his first call, or that he ever told the truth about his positions, when he took really took them or when he really liquidated them? I could write a book about this type of con's methods. He forgot the old Roman dictum chanted in the ear of every Caesar as he entered Rome after victory. "All Glory is Fleeting". "En sic transit Gloria"? Close enough. He is facing the piper right now for his actions. Best and Adios, MR