ANV - SHEARED BY THE SHORTS: HOW SPECULATORS FLEECE INVESTORS
by Ellen Brown is an attorney and president of the Public Banking Institute
Why did gold and silver stocks just get hammered, at a time when commodities are considered a safe haven against widespread global uncertainty? The answer, according to Bill Murphy’s newsletter LeMetropoleCafe, is that the sector has been the target of massive short selling. For some popular precious metal stocks, close to half the trades have been “phantom” sales by short sellers who did not actually own the stock.
PMs and equities are being slammed with the blessing of the fed. they want to argue that there is NO inflation. read the revelation about how lehman got taken down with erronoeus margin calls. someone in the know realizes they have been given the green light to do what they want with pm equities and to a lesser extent the PMs which they cant manipulate as much because of foreign buying. just be patient with the miners - many are paying divs. the violent move down will at some point have a counter action. it does taken a genius to know we have inflation - look at gas, look at food and look at the equity markets. money is being devalued and those with cash are rushing to assets
A bear raid is the practice of targeting a stock or other asset for take-down, either for quick profits or for corporate takeover. Today the target is commodities, but tomorrow it could be something else. When Lehman Brothers went bankrupt in September 2008, some analysts thought the investment firm’s condition was no worse than its competitors’. What brought it down was not undercapitalization but a massive bear raid on 9-11 of that year, when its stock price dropped by 41% in a single day.
The role of market makers is supposedly to provide liquidity in the markets, match buyers with sellers, and ensure that there will always be someone to supply stock to buyers or to take stock off sellers’ hands. The exception allowing them to engage in naked short selling is justified as being necessary to allow buyers and sellers to execute their orders without having to wait for real counterparties to show up. But if you want potatoes or shoes and your local store runs out, you have to wait for delivery. Why is stock investment different?