Matt Taibbi – Caught On Tape: A Naked Swindle – True/Slant

Another form of “equity failure” where brokers manipulate the price of a stock to make money (and they can make money up or down, it doesn’t matter).  No “economic” value is created in these forms of transactions, but much theft from the market happens, daily.

Continuing with the theme of naked short-selling, I have a video that was given to me last week that will allow people to see how naked short-selling can take place.

This video is only 31 seconds long (scroll on down to view it), and what it shows is a day-trader trying to sell short shares in a major NYSE-traded stock. To disguise the identity of the trader, I’ve had to edit out the name of the company in question — I’ll call it BANK X for short. What I can say is that the stock in question is one of America’s largest financial companies and the recipient of an enormous amount of public bailout money, so the fact that its stock can be manipulated is something that should be a concern to everyone.

via Matt Taibbi – Taibblog – Caught On Tape: A Naked Swindle – True/Slant.

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