Funny Bunny
Looking for something a little lighter?
Catch Bob's more irreverent and amusing pieces in his Funny Bunny Blog.

Bethany, I Feel Like I've Nurtured A Viper At My Breast

Location: Blogs Bob O'Brien's Sanity Check Blog    
Posted by:   bobo 11/28/2007 10:49 AM

Is that bad, when you spot an article in Fortune, and it reads like a singing tractor workers piece in Pravda, circa 1962?

Bethany MacLean, one of the more marginally talented of the apparently captured journalist crowd, has delivered an uninspired, insipid, and largely obligatory piece covering the Overstock suit against Rocker and Gradient, wherein she manages to selectively filter the info at a level rarely seen outside of totalitarian regime information ministries.

Now, I enjoy a good hatchet job as much as the next guy, but I tend to like them filled with venom and vitriol, not obviously tired and worn out. This reads like someone called her on a Friday afternoon, and told her to cobble together 1000 words within a few hours, the goal being to parrot the laughable and largely erroneous allegations of the Rocker counter-suit.

Of course, no hatchet job would be complete without painting Patrick as either larcenous or berserk or both, and Bethany manages to get the point across, if in a rather wooden and obvious way.

Apparently, the NY financial press can't seem to ask questions like, "What the hell does that have to do with anything?" To whit, Rocker makes claims that Patrick is a bad man, and manipulated his stock up, but at no point does it occur to Bethany to wonder aloud as to what that has to do with his now abandoned free speech defense (remember that gut-buster?), or the allegations in the OSTK suit, or really anything at all. No, it is just a rather stilted recitation of the suit's unfounded allegations.

I know for a fact many of them are inventions and lies, as I briefly skimmed the suit, and came across where it claims that I published photos of Marc Cohodes' son on Yahoo - something that apparently nobody in the crack legal team that concocted this nonsense took the time to figure out is impossible to do on Yahoo, and was never claimed in all the slanted, trumped up coverage of that period. Of course, given that has nothing at all to do with OSTK anyway, one could ask why it is even included in the counter-suit, but why spoil the party?

Does it matter that it is mostly lies? Is a judge going to care if so much is so easily shown to be BS? Do they take the position that if you find 10 lies or inaccuracies, that the rest of the work is likely as flawed as those areas, or is it just lie away, and hope nobody is paying attention? The legal team clearly was trying to come up with something, anything, that would justify billing a grand an hour to contrive this nonsense, however one would think they would at least attempt cursory quality control.

Sigh. Good help is so hard to find these days. This is what happens when you let the paralegals write the briefs after a hard weekend of paint huffing and Jim Beam swigging.

But back to Bethany. She also manages to miss the fact that the OSTK suit against Rocker/Gradient is a flyspeck compared to the much larger and more on-point suit against the prime brokers. Maybe the voice on the phone failed to mention it? Maybe she was advised not to confuse the readers with relevant data?

I could go on, and say mean-spirited things like Bethany, sweetie, please, stop phoning it in, nobody's fooled....but I won't. That would be beneath my stature as a holiday rodent who is such an object of unrequited love for so many hedge funds and shysters.

Read all Bethany's breathless prose, and consider whether it's any mystery to anyone anymore as to why the majority of the country views the mainstream media as a bunch of lying liars who would lie when the truth would serve them better. And folks at SABEW, before you use that slogan as your theme for next year's Greenberg party, I would ask you consider that last year's "We will crush anyone opposing us like dung beetles" soirée was a huge hit, and it might be better to keep with the "We can say or do anything we want, as we are Gods to these ants" theme.

Just trying to help. Hhmmm 'kay?

Copyright ©2007 Bob O'Brien
Permalink  |  Trackback
Comments (10)
Re: Bethany, I Feel Like I've Nurtured A Viper At My Breast By ginger on 11/28/2007 1:18 PM
It is amusing to see the world's largest bankrupt bank, Citigroup (C) getting a $7.5 billion bailout from the middle east. They are paying 11% interest (junk bond rate) for the money. Yet, they can only charge about 7.5% for the money they lend out.
Re: Bethany, I Feel Like I've Nurtured A Viper At My Breast By bobo on 11/28/2007 1:20 PM
Yes Ginger, perhaps they can lend it out only at 7.5%, but they can make it up on volume. Which is only partially funny, as they are allowed to lend 10 dollars for every one they get on deposit.

That's the best business on the planet. How the F do you mess it up so badly when you can literally print money? Masters of the Universe? More like the slow kid at the back of the class.
Re: Bethany, I Feel Like I've Nurtured A Viper At My Breast By lenofus on 11/28/2007 2:02 PM
I always picture you, Bobo, with a fedora tipped back on your head, banging a typewriter with your index fingers, smoke going, rimless glasses......... Do you laugh out loud when you come up with stuff like "singing tractor workers", cuz I do?

But yes, the arguments hold no more water than they did last year, or the year before, and they are more than a little dog eared. I"m sure the bigger guys are stuffing suitcases, yelling out instructions as they sneak out the back. Moe slaps Larry, Larry slaps Curly, Curly slaps.............. Oh well, somebodys gotta go to prison.
Re: Bethany, I Feel Like I've Nurtured A Viper At My Breast By Facts, Mam, just the facts... on 11/28/2007 4:47 PM
Even a half-wit paralegal could do a little research on the things in that countersuit and find the errors..... let them go to court with it the way it is and get laughed out.. Poor Dave didn't proof it nearly as closely as he should have. Those lawyers are going to get paid whether the crap they submit has merit or not... unless the checks bounce....
Re: Bethany, I Feel Like I've Nurtured A Viper At My Breast By Media Whore on 11/28/2007 4:48 PM
After Bethany wears out her welcome in corrupt journalism I expect her to gravitate to the porno industry. I suspect it will pay better if she does it before she is too old for anything other than the "mature" films. Say I wonder if the people that use her have had her branded or tattooed? It is pretty clear they "own" her.
Re: Bethany, I Feel Like I've Nurtured A Viper At My Breast By mhelburn on 11/28/2007 4:48 PM
Give Bethany a break... maybe she has been threatened or coerced... going against the party line seems a lot more dangerous than getting the facts straight or caring about the facts. One has to keep journalistic distance. Repeat the mudslinging and try to pretend that you've added something to the discussion.. Fortune can turn out a good story now and then... Peter Elkind did an excellent job on putting together all the ins and outs of the paid plaintiffs in the Milberg Weiss scam. But somebody had an even better scam... put somebody on the complaint without her knowledge... remember.. JCP Eckerds... no money trail, no money laundering... just put somebody else's name on the suit, but that suit was just for manipulating the price... cause they knew it had no merit. Couldn't get a paid plaintiff on that one because, there was no suit and no profits for the CA attorneys. That was just for the shorts.
Re: Bethany, I Feel Like I've Nurtured A Viper At My Breast By bobo on 11/28/2007 9:43 PM
Didn't Bethany also play a role in the false accusations against JC Penneys/Eckerds? Refresh my memory. I do remember Rocker was also short that issue.

What a very, very small world it is, huh? If only there was some sort of a pattern, or a clue.....
Re: Bethany, I Feel Like I've Nurtured A Viper At My Breast By mhelburn on 11/29/2007 11:43 AM
I don't recall who jumped on the bandwagon... Maybe Bethany would like to revisit the mythical, magical ability of a short who is able to get a position as opportune as described in the links below. With this sort of "good luck", it makes it hard to believe such a person could ever lose money. If a trader were accustomed to always making a profit, it must be quite a surprise to have a trade go against him. No doubt, if there were a way to fix it, the trader would go all out, using every means to drop the pps.. captured media, matched put options, rolling OMM exemptions out using flex options...

From a recent submittal to the SEC

This “rolling” of failed positions from one period to the next may explain the sale of 4,770 March07
22.5 OSTK puts on December 7, 2006, with no associated equity market activity. Given statements
by the SEC above, it is plausible that an options market maker rolled Cohodes’ 4,770 Dec06 22.5
puts (mentioned above) to the March07 22.5 contract without re-hedging.

Looking at the merit of the countersuit.... If there were any, why did they wait until all the appeals were used up? If Patty and his board are as bad as they claim, how could the defendents allow time to pass and let these fellows go on casting their evil on the market. Perhaps the countersuit is just a last-ditch attempt to distract the public from the merits of the original suit.

These comments seem even more relevent now that the appeals have run out..and discovery is going forward. They have managed to delay discovery for two years.

SALT LAKE CITY, Nov 17, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Overstock.com(R) (Nasdaq: OSTK) issued the following statement in response to Rocker Partners' and Gradient Analytics' motion to dismiss Overstock.com's unfair business practices lawsuit.
Patrick Byrne, president of Overstock.com:

"Anyone following our lawsuit should note that Rocker and Gradient failed
to do two things. Though in the past their shills have accused me of
making wild accusations, in their responses Rocker and Gradient do not
deny the substance of my allegations, instead claiming that their behavior
counts as 'protected speech.' Secondly, they have not filed the
countersuit they had promised to file: instead, they asked the court to
stay all discovery and to dismiss our lawsuit."

"For the record, I believe that Rocker and Gradient are misusing
California's Anti-SLAPP statute and the claims they have made under it are
improper. These motions, which don't deny any of our allegations, are an
attempt to prevent us from ever getting discovery or the suit from ever
seeing a courtroom and jury. If they had, as threatened, filed a
countersuit, we would begin the discovery process. I believe they will do
everything in their power to fight discovery. Thus, we expect Gradient
and Rocker to continue to try to string this out as long as possible with
delaying motions such as the one filed Tuesday. Only when it becomes clear
that they cannot avoid court do we expect they will file a countersuit.

"Observers should also take note that the declarations we made public
describe Gradient's practice of letting hedge funds order hatchet jobs,
permit select clients to review and edit reports before publication, and
then front run the research. My question is this: if that is in fact how
Gradient and Rocker operate, can all agree that is inappropriate, without
dithering over specious claims about the First Amendment? If they will
not concede such a minimal standard, I believe the public may begin to see
the pernicious effects of their style of 'investing.'"



These are letters about the JCP/Eckerd's totally bogus whistleblower suit which turned out to be whistleblowing without the whistle. But there was a short who had a big smile on his face over this although the Class Action attorney got nothing from it. How do you repay the contingency guys when they grab air?

http://www.lucidprose.com/exam_dump.html

http://edgar.sec.gov/rules/other/4-476/washlegal052203.pdf
Re: Bethany, I Feel Like I've Nurtured A Viper At My Breast By bobo on 11/29/2007 3:54 PM
Someone sent me this today. It is a lucid, coherent description of the naked short selling problem, and its impact on investors.

http://seekingalpha.com/article/55690-naked-short-selling-the-scales-are-rigged

That means, of course, that it will get absolutely no attention from anyone in the industry, and will be buried as silliness or the ramblings of a nutcase, or as has been the norm of late, completely ignored.
Re: Bethany, I Feel Like I've Nurtured A Viper At My Breast By gregcable2002 on 11/30/2007 7:37 AM
I'm sure everyone has seen this by now,just think of the exposure the counterfieting of stocks will get between now and the election,the Wall street criminals can't stop this one,AMERICA IS FIGHTING BACK,SEC,BEWARE,do your job or we'll do it for you.

Ballot initiative targets illegal short selling

SIOUX FALLS (AP) -- An initiative that would impose state penalties for the illegal short selling of stock shares appears to be the first headed to the 2008 ballot in South Dakota.

It's part of a nationwide effort to convince states to pass their own laws against "naked" short selling, which involves selling borrowed shares without having borrowed them first.

The practice is already illegal in the eyes of the federal Securities and Exchange Commission because it tends to lower a company's share price by artificially creating more sellers than buyers. But proponents of state laws against the practice say the SEC is not enforcing its laws so states need to act.

State Rep. Hal Wick, R-Sioux Falls, said South Dakotans for Securities Reform has gathered 27,500 signatures and plans to deliver the petitions to the South Dakota secretary of state on Thursday.

Wick said he knew nothing of "naked" short selling until last March, when Tim Mooney, spokesman for the Union, Mo.-based American Entrepreneurs for Securities Reform, brought it to his attention.

If passed by voters, the law would require stock shares to be delivered to the buyer within three days of their purchase.

"This is a consumer protection issue that needs to be addressed," Wick said Wednesday. "The people of South Dakota deserve to have the protection of both the state and the federal government when they invest their hard-earned dollars in the stock market."

Travis Larson, spokesman for the Securities Industry and Financial Markets Association, said the SEC has addressed the issue and any state law dealing with short selling would likely run counter to current federal regulations.

"The SEC has been given control of our financial market regulations so that we have one single set of rules and regulations for our financial markets," Larson said. "And if every state were to pass its own rules -- some of which may run counter to the SEC -- the patchwork quilt of resulting rules and regulations would tie up our financial markets and slow them, hurting our competitiveness."

Larson added that where short selling occurs illegally, it should be punished to the fullest extent of existing federal law.

In a July letter to the industry association, South Dakota Gov. Mike Rounds said promoters might have good intentions, but the proposed initiative would unduly burden and obstruct interstate commerce.

"The initiative will not receive support from this office and, unfortunately, there is no realistic way to prevent the short sale initiative from appearing on the November 4, 2008, ballot if the proper signatures are obtained," Rounds wrote.

Traditional short sellers borrow a stock, then sell it, betting its price will decline and they will be able to buy it back and return it to their lender at a cheaper price. In "naked" short selling, as defined by the SEC, the seller does not borrow or arrange to borrow the securities in time to "make the delivery" to the buyer within the standard three-day settlement period for trades. It's called a failure to deliver.

Mooney said the practice amounts to fraud, and the American Entrepreneurs for Securities Reform is trying to get similar legislation passed in Oklahoma and Missouri.

"Phantom shares of stock are created in excess of that which has been issued," Mooney said. "It's the same economic impact as putting a $100 bill in the Xerox machine and hitting 'copy."'

"Naked" short selling has received some attention in recent years from Patrick Byrne, chief executive officer of Overstock.com, who has become a vocal critic of the practice. The Salt Lake City-based Internet retailer is suing a stock research firm and hedge fund managers for allegedly driving down the company's shares.

Utah's legislature passed a law against the practice in 2006, but repealed it a year later.

The extent of "naked" short selling is not known.

Mooney estimates that as much as $6 billion a day worth of stock is not delivered, but he added that some of that is fixed over time.

Other business analysts contend the issue is overblown.

Failures to deliver can occur for a number of reasons, including human or mechanical errors or processing delays, and they can occur on both long and short sales.

Wick said he wasn't sure how prevalent the practice is in South Dakota, but he said he knows of one company in the state that has been impacted by it. He said he did not want to name the company.

But startup companies need protection against the practice so brokerage firms can't drive them into bankruptcy, Wick said. The conversion of the old Homestake gold mine in Lead into an underground laboratory will draw many startup companies to the state, he added.

Asked why he didn't introduce the bill in the Legislature rather than using the ballot initiative process, Wick said short selling is not the kind of issue that would otherwise get a lot of media attention.

"The things that go through the Legislature, most people never see," Wick said. "By doing this publicly and asking the people to vote on it, we let the people of South Dakota really say what they want."

Mooney said state efforts will also help get the attention of the SEC, which can then better enforce its laws.

Wick said he hasn't had any discussions with the South Dakota Attorney General's Office on how it would handle enforcement of the proposed law, but it would fall under the state's consumer protection division.

The ballot measure is titled the South Dakota Small Investors Protection Initiative.


Your name:
Title:
Comment:
Please limit your comments to 500 characters. For longer comments, use our forums.
Subscribe via Email
Get This Blog via Email:


Powered by Squeet.com
Sanity Check Archive
Resources
Copyright © 2006 The Sanity Check   |  Privacy Statement  |  Terms Of Use