The Wall Street Conspiracy

I recently watched a pretty amazing documentary from 2012 about the collapse of the US Banking System, and how the wealthy elite manipulate and control the stock market VIA naked short selling. That and government entities such as the SEC who allows the DTCC to operate how they wish with generally no supervision or oversight. It really opened my eyes but also made me a little angry knowing a little more on how the few control the many. The Movie is called “The Wall Street Conspiracy” and its available to watch on youtube for free or Amazon Prime.

If you dont know who the DTCC (Depository Trust & Clearing Corporation) is, the DTCC was created to keep all the assets of the stock market under one owner.

The Depository Trust & Clearing Corporation is the biggest bank in the world that you have probably never heard it. They happen to be the registered owners of 99% of all paper (stocks, bonds, securities, etc.). Scary, but true.

The DTCC retains registered ownership while you as the tiny investor have the designation of beneficiary of the instruments. The DTCC is and has always been very loosely regulated, with a history of being culpable regarding naked shorting practices.

All of these excess shares from failure to delivers bloat the markets. It’s why stock prices can at times, appear out of touch with the actual economy and when the ‘corrections’ occurs the crash is so massive lately. EVERY TIME it happens a small minority is stealing from the general public and many of the beneficiaries that run the economy.

We have the technology now people to get rid of the corruption or incompetence that is the DTCC and clean up the stock market and make it unable to be tampered with by these huge hedge funds and now quant funds.

Patrick Byrne (Overstock.com CEO) who was also targeted and was in this video by short selling attacks, has also been a big proponent for cryptocurrency projects such as Ravencoin because of their ability to transfer ownership of digital or physical assets such as stocks and bonds in a timely matter (read seconds) by a smart contract where the DTCC takes days and thousands of people to do the same job.

Solution: the entire stock market should exist and be traded on an openly distributed ledger (a blockchain).

If the entire stock market existed and was traded on a blockchain, it mean that the asset or stock can be authenticated and verified in seconds where the DTCC as mentioned before takes days. In a world where TRILLIONS of stocks are traded daily there is zero reasoning for us to be using the DTCC. The ledger would be open and public so anyone could verify that a specific stock exists. Its essentially a database that is held and verified by thousands and thousands of computers worldwide. No one single entity would be able to make a fraudulent change to the database and be able to perform naked short selling. These types of financial fraud would be impossible due to the blockchains transparency, simply you wouldn’t be able to trade an asset that doesn't exist.

Naked short selling has been illegal for some time but it is still a practice used daily by hedge funds with zero repercussions. The only people to ever be jailed from naked short selling were a few professors from Florida who made ~$400,000 doing it. Of course the hedgies who have made billions doing the practice still get away from it daily.

Now my worry is, we have the solution, but we could actually already stop this practice if the SEC actually did their job. I think there is a lot more going on than just a simple solution. The market makers and the people who govern them, are making way to much money to actually do anything about this.