The truth is shocking! Most of us sway away from knowing what's behind in every real issues around us... it could be about Religion, Politics or Economic situations. Without knowing the truth and not getting involved ... we say maybe, life is esier to bear. It is like "I mind my own business" kind of attitude. We have this ideal reaction that when it doesn't concern us directly, we just ignore the problem. But sometimes, there are issues that we ought to get involved with epecially when we knew seriously that something is not right.
I applaud Patrick Byrne, the Chairman and CEO of overstock.com for exposing the truth so others may know that serious criminal actvity exists in the stock market world. As I listen to his discussion, it became so clear that economic warfare is an easy instrument of Transnational Organized Crimes.
Here is the compelling video that I watched and I am inviting you all to please take the time to watch it. I would appreciate it if you could share your thoughts about this delicate issue.
The Economic Warfare
I watch the news all the time and you know, I am sick of people taking advantage of the weakness of others. I can only imagine that the word “red pill’ was in the scenario of the movie Matrix but, surprisingly this word is also applicable in the stock market world. Well, CEO Patrick Byrne mentioned this word in connection with Milberg Weiss Bershad Schulman case which was so disturbing because as what he emphasized, how they know? The truth is, criminal activity is lurking everywhere that even the stock market world has no exemption. We are actually living in the truth of reality, the red pill scenario that as long as the criminals will find a loophole to run their fraud schemes and if the government will not do something about it, there will always be victims.
In every rules made, flaws exist especially when hastily written therefore; these instances have become the magnet for criminals who have found the loopholes. Criminal activities are mammoth as what Byrne says and investors were caught off-guard. They found out the hard way literally when their bank account were drained. My heart aches every time I remember how thousands of investors were victimized by Bernie Madoff's massive Ponzi scheme. His case became the largest financial fraud in US history, that is sickening! He and his cohorts have no soul at all. In 1960 Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC and it was alarming that he defrauded thousands of investors whom some of them are close family members and close friends. How devastating right?
Another topic that Patrick Byrne mentioned in the video is Settlement which is about the process by which money and stock exchanges in hand meaning; the Investor transfers cash to the Hedge Fund and the latter transfer stock ownership to the investor. This has to be done in 3 days after the trade was being made. Here is the loophole: instead of doing the settlement in T+3 system, it became T+3+13 which according to Byrne, this is a slop in the settlement system. I agree. That's a long wait. If I am the investor, I want to see a positive yield to my investment in short period of time. I am sure, ordinary investors are not aware of DTCC which are like the mediator between Investor and Hedge Fund. With them being involved in the settlement, I think it is not a good thing because it will only delay the process of yielding big on the investment.
Here comes the Fault Tolerance in the system which is alarming and believe me, instances like this exists without the investors knowledge. A good example Byrne mentioned was when an investors buy stocks from the Hedge Fund so; they send the money. The Hedge Fund sends the stocks but, sometimes they run out of shares to send to the investor. It is business so; the flow must go on. What they did was create an FTB and send an artificial shares to the investor. This is a stock market manipulation already. There is loophole here and when this happens, criminals are magnetized to start unlawful activities. In this type of system, organized crime will emerge abruptly, don't you think? Investor trusted them that their money will yield interest and what they did was send a fake shares. Unbelievable!
The Bust-Out in Low Finance is another organized crime that is unbelievable. These criminals have no fears at all! They are driven to do this crime because they want easy big time money. They know that their time is ticking to jail time but, they are still doing it and they have no remorse whatsoever. The bust-out scheme still exists at present time for sure because time and time again, we heard people filing for bankruptcy.
Not all cases but, the truth is … people finds this an easy way out.
Economic Warfare is alarming and this is the painful truth of reality.Not all cases but, the truth is … people finds this an easy way out.
3 comments:
Criminals are so used to doing schemes that they don't have any regard whether it could send them to jail. To them, it's the easy money that they would get that matters and most of the times, they do get away with it.
Great Post! I personally had no idea what goes on. I read your post gonna check the video out now!!
This is definitely a very interesting subject. One has to do some research to be aware of the worlds issue. I tried to ignore news because I get depress with the news either economic, business or whatever headlines it may be.
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