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$131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?

Location: Blogs Bud Burrell - Front and Center
Posted by: bburrell	11/21/2006 10:18 PM
$6 Billion in Fails has somehow morphed itself into $131 Billion. Can we rely on that being the real number for fails? Not a chance! Let us give a moment to consideration of the history of buy-ins on fails within the industry. For 30 years, the fully absorbed numbers on a failed trade were three times the face, but this was long before such a situation had become pandemic. I know this because I had to budget for and accept charges to my unit P&L's for just such trades. Now, in today's world, the cost of buying in a failed trade where there is real abuse can exceed 100 times the value of the underlying market cap represented by the actual security. If you want proof, you don't have to go any further the the Genemax story, now legend, of a $350 Million cost to buy in a small portion of the actual GAAP market cap of that company. Multiply this by the 68 reported companies that were blocked from going to certificate only delivery, and you have an entirely different picture, one of nightmare proportions. Literally thousands of companies had legitimate complaints of illegal shorting, which is only one of many kinds of manipulation generating fails, and if these companies had been able to force covering of these shorts, the total capital of the brokers, and the market would have been exhausted a very short way along the path to this action. TREASON, TREASON, TREASON, TREASON!!! Criminal Syndicalism is legally Insurrection and Sedition, PERIOD, and it is an old law with plenty of case law history. Anyone saying anything different is a human sack of excrement, no matter what their credentials. WTF is it that no one gets about this situation? When this absolutley enormous, filthy rock is turned over, it must on the very people responsible. This is NOT QUANTUM PHYSICS!!! Those in the Government who have been responsible for allowing this to happen must act now, or be hung beside those whose conduct they turned a consciously blind eye to. We are screaming into a potential Hurricane. These vermin are probably praying every day for a sickening terrorist event to save their worthless asses. We have to insure this is never, and I mean NEVER, forgotten nor forgiven, not until these scum are buried by their own BS. How many more lies or reversals of positions do Americans need to hear?
Copyright ©2006 Bud Burrell
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Comments (12)

Re: $131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?

By sgaah on 11/22/2006 6:45 AM

My moniker is "sgaah" for smoking gun and a half.

When I saw the $131 million in fails in the Financial and Operational Combined Uniform Reports and saw how it dwarfed the DTC fairy story, I thought it was a smoking gun.

When I realized that it was only on the tip of the iceberg, I added the "and a half".

Now I want to add many more halfs as I think most trades are fake. When they say liquidity, they mean a fake sell trade where you pay a commission and they hope someone else will pay a commision to buy and the two trades cancel out. They get double commission and play outside the supposed auction market.

ECN's are all about cancelling trades out internal to the ECN, while they screw any movement up or down in the stock price.

Most trades are FAKE. They take your money and hope it nets out with a sucker betting against you.

- real people are losing jobs
- real cures to diseases are being lost
- real companies are going bankrupt
- real investors are donating fortunes to counterfeiters

From OTC security position reports, I belive that outside the US, everyone buys phantom shares. The international trades are a farce. If you buy or sell from a foreigner, then you are going into a parallel system of IOU's.

They repo. They borrow. They daisy chain. Anything to create a chain of IOU's that screws you at the expense of wallstreet.

Re: $131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?	By virakiller on 11/22/2006 7:20 AM
hey bud tic-toc-tic-toc I called chair cox office last night at 830pm and someone answered I told them I was going to report then to Dept of Homeland Security. She laughed at me They really believe we have no power at all. I guess that is what Goliath though also of David WE WILL OVERPOWER THIS TREASON GARBAGE THAT RULES US

Re: $131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?	By ginger on 11/22/2006 8:20 AM
Bud, please help me find the Genemax legend.

Re: $131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?

By bburrell on 11/22/2006 8:29 AM

The Genemax symbol was GMXX. Look up the story, it is all over the Web and Raging Bull. They were the first company, advised by an entity called ICI if I remember correctly, to go to Certificate Only Delivery, withdrawing completely from the DTCC.

68 more companies applied to do the same thing, prompting DTCC to run to the SEC and get a frucacta ruling from them that the UCC prohibited companies from exiting DTCC.

Now SEC Commissioner Annette Nazareth, then head of Market Regulation for the SEC came out with a statement that said while the SEC understood the need of small public companies to protect themselves from manipulators, this need could not be allowed to interfere with the greater goal of fully automated STP processing.

In one of my comment letters, I called this the Stalin Analogy: The System would have to allow the killing off of an unspecified number of companies for the greater good of automated settlement. Only here, I compared this to the murder of Ukrainian farmers by the Soviet Union under Stalin to achieve the greater goal of Collectivized Farms. I further called this socialist claptrap run amok.

You should be able to find a raft of GMXX materials.

Re: $131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?

By anthony kalantzis on 11/22/2006 10:33 AM

wouldnt an easy way to capture the shorts be via a CORNER ..seeing as the brokers are allowing more shares to be traded than are in existence .

There is even a more dangerous situation than a "squeeze." It is
called a "corner." This can occur if a party or parties (or
a "syndicate") buys up virtually all of the shares of a company and
then demand the physical stock certificates. The short seller is in
one hell of a bind. Here's why. The broker who loaned you the stock
(which you've sold) now needs that certificate back because the real
owner of the shares has unexpectedly sold them. This can happen even
in ordinary circumstances, but then the broker always has lots of
other customers whose stock certificates can be borrowed just as
easily. But in a corner all the customers have sold their stock to
whomever is running the corner. The broker must deliver all the
certificates, but he has loaned shares to you. He demands that you
return the certificate, but there are none to be had. The syndicate
which has run the corner may demand virtually any price for those
unfortunates who must buy stock certificates. If the investor can't
deliver the shares he can go to jail. If the brokerage house cannot
deliver the shares, the firm can be put out of business. It's an ugly
situation... .

if the sec isnt helping to clean up the ftd's ...
a company may try this

Re: $131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?

By gene on 11/22/2006 10:34 AM

I met with one of the executives at Genemax. They said they did a big interview for one of the newsmagazines (60 minutes, maybe?) and it was canned by head office. They complained to the SEC and thought the SEC was listening until they realized the SEC was investigating them.

They were the first to tell me that this crime is way bigger than I can imagine and involves the most powerful people in the world.

They were working on cancer treatment from the local university and their only crime is they squeezed the shorts. The stock went from $.05 to $20 because there was only 200,000 shares in the float that wasn't friendly and they threatened to sue brokerages that wouldn't give them their certs.

They started a group similar to NCAANS which was eventually closed down.

There was a big fight at that time called "Stockgate" with the genemaxes and Sedonas and Jag Medias, but the SEC killed it by making it illegal for companies to protect their shareholders from the criminals at the DTCC.

Re: $131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?	By Wicked World on 11/22/2006 12:35 PM
"$6 Billion in Fails has somehow morphed itself into $131 Billion." Is this linked at the DTCC website or elsewhere?

Re: $131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?	By Bruce Thompson on 11/22/2006 3:24 PM
A link to this DTCC info would be greatly appreciated. Thank you.

Re: $131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?

By kevin on 11/22/2006 12:36 PM

Anthony, the problem is the brokerages just refuse to give you your certificate. They will say "unfortunately, your trade didn't settle". They might even offer you your money back.

Alternatively, they may make the stock "sell only". Investors can sell it, but they aren't allowed to buy it.

Finally, they may create bad news (SEC investigation, shareholder lawsuit, etc.) or the market makers may suddenly tank the price for no reason to spook out shares.

The system refuses to allow squeezes to happen.

Re: $131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?	By ginger on 11/22/2006 3:25 PM
Arne Alsin, Portfolio Manager, Alsin Capital Management, Inc. described the problem perfectly; the brokers have far too much power. In theory this should be an easy problem to solve, but because of widespread corruption in government, it isn't. Bill Moyers refers to it as the Culture of Corruption. Be sure to go see Aaron Russo's documentary... America: Freedom to Fascism

Re: $131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?

By Freddo on 11/22/2006 3:34 PM

Suddenly everything (from the undying efforts of you, Mr. Burrell et al, to NCANS, and everyone else involved trying to make wrong, finally right) here seems to be so futile......try as the lil guy may to thwart a concerted effort at group rape with pure determination, and no spit I sit in my chair, and feel an infinitely heavy weight on my chest....my head pounds, my veins run black with rage, and revenge, and, suddenly I want to put my hand cannon to use. If not for my benefit, but for the benefit of the future generations that will have to seccumb to the whores, leeches, and miscreants that are lining up to further rape, and commit nefarious acts agaisnt the unborn children to come......

And I am supposed to pay taxes......pfft.

MA VA FANCOULO!

FC,CF

Re: $131 Billion in Fails Now Reported by DTCC. What would it cost to cover these fails?	By cafr on 11/23/2006 7:24 AM
This guy says that the government is way wealthier than you would believe as they don't count assets in their financials. Read the article on short selling. http://cafr1.com/