Manages Parisian Family Office. Began Wall Street, 82. Founded investment firm, Native American Advisors. Member, White Earth Chippewa Tribe. Was NYSE/FINRA arb. Conservative. Raised on Native reservations. Pureblood, clot-shot free. In a world elevated on a tech-driven dopamine binge, he trades from Ghost Ranch on the Yellowstone River in MT, his TN farm, Pamelot or CASA TULE', his winter camp in Los Cabos, Mexico. Always been, and will always be, an optimist.

Monday, July 13, 2009

SEC, politicians and media pundits please read carefully


1) The DTC through their “nominee” Cede and Co. “volunteers” to act as the surrogate “legal owner” of all shares held in “street name” ostensibly to “streamline” the trade clearing process.

2) UCC-Article 8 authors warn the DTC and its co-owning “participants” not to “lever” this role over the financial interests of the purchasers of shares who have been stripped of their “legal ownership” title and rights.

3) The DTC replies, “Are you kidding, NONE of our many thousands of “participants” would ever dream of taking advantage of U.S. investors”.

4) The purchasers of delivered shares thus become the “beneficial owners” of shares instead of their “legal owners”.

5) The purchasers of undelivered shares on midnight of T+3 become “security entitlement holders” to shares presumed to be en route.

6) UCC-8 dictates that both groups be treated exactly the same because delivery is presumably due at any moment (the default presumption).

7) The purchasers of shares who are the most motivated to make sure they got delivery of that which they purchased therefore become blindfolded as to whether the shares they bought ever got delivered or not because UCC-8 mandates that their clearing firm treat them as if they did get delivered. This policy is fine as long as the default presumption is accurate 100% of the time.

9) Due to this policy all FTDs and all SBP “borrows” result in the “issuance” of share price depressing “security entitlements” being credited to the accounts of even the purchasers of undelivered shares (presumed until proven otherwise to be en route).

10) The DTCC over time attains a monopoly on 15 of the 16 sources of empowerment to do buy-ins by “volunteering” to act in certain capacities like the “central counterparty “CCP” to all transactions and as a “qualified control location” able to attain and grant compliance with “The Customer Protection Rule” (15c3-3).

11) The fear of a buy-in is the only deterrent and a “buy-in” is the only cure available when the seller of shares absolutely refuses to voluntarily deliver them to the purchaser.

12) Opportunistic crooks realize that refusing to deliver that which they sold both establishes and monetizes a naked short position.

13) The crooks refuse to deliver that which they sold and their employees the NSCC management predictably refuse to deploy the only deterrent and only cure available even after the default presumption was proven to be in error.

14) The share price crashes from the accumulation of readily sellable share price depressing “security entitlements” which MANIPULATES the “supply” of that which is readily sellable upwards.

15) The crooks are only asked to “collateralize” on a daily marked to market basis the monetary value of the failed delivery obligation which is accomplished almost entirely with the investor’s money i.e. the crooks have no “skin in the game”.

16) Even though the sellers refuse to deliver that which they sold the buyer’s investment funds still flow to the sellers of nonexistent securities because as the share price predictably plummets so too do the collateralization requirements.

17) As per the wishes of their bosses the NSCC management has simply shirked their congressional mandates in order to look after the financial interests of their bosses.

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