Friday, December 16, 2005

Dr. Byrne's CFRN Radio Interview - Stunning - The 30 Million Share Scam

Dr. Patrick Byrne of OSTK did a one and a half hour interview on CFRN today, and it is one of the more powerful pieces I've heard him do.

He speaks frankly about the lawsuit, naked short selling, Wall Street, captured regulators, international crime syndicates, you name it.

He discusses the tactic of demonizing those critical of Wall Street, and the frustration of his adversaries at his lack of interest in their attacks.

Basically, he talks about everything anyone would want to know about the issues, and the size and scope of the problem - you name it, he covers it, coherently and convincingly. You can listen to it here, at CFRN. On that website there is also a series of radio interviews by Bud Burrell, who is extremely well versed on naked short selling and most every aspect of the situation, and an interview with Mark Faulk of the Faulking Truth, who has a great hour discussing the topic.

Go to the page, and the interviews are on the lower right hand side.

One of the comments Dr. Byrne made that stopped me cold was the calculation as to the number of fails at the DTCC. He indicates that his experts reviewed his NOBO and OBO sheets, and there are over 5 million naked short shares there, in addition to the 7 million legitimate short shares.

And then, bless his heart, he runs the calculation I would have run, and does it in precisely the way I would have - he discusses the DTCC's Larry Thompson's comment that 80% of the FTD's aren't accommodated by the Stock Borrow Program - and thus are likely "ex-clearing" fails. If that is the case, then that 5+ million FTD's at the DTCC is only 20% of the naked shorted shares, and OSTK has well over 30 million shares shorted, both legitimately, and illegally.

30 million.

How is that possible, for a company on the SHO list? How could the SEC condone that sort of flagrant, in your face, obvious and overt stock manipulation? I was literally speechless when I heard Byrne discuss it.

NOTE: I had a telephone discussion with Dr. Byrne today, asking about the math, and whether he actually believed that was possible - 30 million or more shares short in OSTK - and he said that the emotional part of his heart doesn't think it is possible, as that would indicate a system so far out of control that it literally would be complete lawlessness. He had a hard time comprehending how that could be so. Rationally, he felt that the reports said what the reports said, but he is hopeful that he has something wrong. He also indicated that guess was his own, and not his experts' opinions - that was based on his own pencil to paper analysis of his Nobo and Obo reports.

Think about what that means, and consider the level of impunity which the bad guys must feel protects them, to keep selling OSTK short, brazenly and illegally, in spite of the suicidal impact of going in that big on a stock with insiders owning most of it. And consider what covering just the OSTK short will do to the entire network of bad guys, including their brokers - 30 million shorted shares, and nobody is really selling. Unreal.

And then consider that nobody is defending the company against this obviously highly predatory, illegal, and damaging practice - and consider what that says about the system, the market, and our future as a legitimate economy. Consider that the press has spent all their time attacking Byrne as a kook - and consider that the DTCC and the SEC won't tell anyone how big the FTD problem is, including in OSTK - hey, I know, if this is all BS, give us the numbers and prove it. Oh, wait, that would cause volatility. I guess now we know how much volatility, given that covering OSTK would literally take it to $500 or more - 170 days to cover. Astonishing.

Listen to the interview. This is priceless, and should be required listening by the Senate Banking Committee - particularly Senator Shelby, on whose watch this is occurring, and who has the capacity to stop this crap dead whenever he wants to.

Makes you wonder what is more important than safeguarding the integrity of our market system, huh?

9 Comments:

Blogger mfairview said...

Hmm, OSTK now has 8 people that collaborate the allegations made against Gradient/Rocker. Unless the defendents can escape via the SLAPP approach, this could get really interesting.

4:32 AM  
Anonymous Anonymous said...

Is there a way to estimate the naked short position (DTCC and ex-clearing) on other issues?

7:11 AM  
Anonymous Anonymous said...

In January, time for another round of ads, on the first anniverary of Reg SHO? NCANS could highlight, say, three egregious cases and provide a web link to NCANS for more info on them, including interviews such as this one and the transcript of the NASAA {Roddy Boyd, we're still waiting for your article. . . ).

The millions of shoppers who have used Overstock.com would be amazed to learn that this sleazy failure of market oversight has been allowed to continue.

The saddest of the sad truths revealed by such incidents: you, me, and all other Americans are paying the salaries of the regulators and legislators even as they act to undermine our interests. I think most Americans will be outraged if and when they ever learn the truth of this scandalous situation.

7:49 AM  
Anonymous Anonymous said...

I listened to the interview and the stats Byrne gave are truly amazing. It seems the "proof" is starting to come out. I was a little dissapointed however that a few times when the "juicy" info was coming out, a random google search or story from the past took them off subject. Byrne gracefully came back on subject most of the time, but a few times I wish Byrne could have elaborated further.

One comment from Byrne that I did not follow was his reference to the government official from Connecticut (i think) on CNBC. It seemed as though this official was hinting at something that Byrne didn't want to confirm publically, but that could be big and may be in the near future. Any idea what this is or how to get the link to this interview?

7:54 AM  
Blogger Bingolabs said...

I too am interested in what the Conn. AG has to do with all this.

I listened to the Byrne interview and one thing I think he needs to elaborate on is how the naked short situation could lead to a "collapse" of the system. Although I think there is a naked short problem, the case has yet to be made that the system could be on the verge of a collapse.

P. Bynre needs to lay out a scenario (i.e. the sequence of events the leads to meltdown) that causes the collapse.

I suppose one possibility is that a number of customers who have naked shorted lose so much money that their brokers ( Morgan Stanley, Smith Barney) go bankrupt. I serious down this is a likely scenario.

I think this is the case that needs to be made by Bobo and Patrick.

11:09 AM  
Anonymous Anonymous said...

Byrne said that something is going to happen in the next couple of weeks, and that he feels things will break "sooner, rather than later"... and that he wants to come back and speak again after the upcoming events. Such suspense!

You're right Bob... this Byrne interview is a stunning, must listen.

Great work as always keeping the info flowing.

11:11 AM  
Blogger mfairview said...

Am interested in the CT AG story also. Can someone narrate?

11:20 AM  
Blogger bob obrien said...

Stay tuned for the next Sanity Check - this one is just a prelude.

Honest.

The next one will blow everyone's mind.

How's that for suspense?

4:37 PM  
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