found this at Climate Progress

From Cuddly Cyborg via The Big Picture

So, your stock market is heading south for the summer and you need to lift it north? No problem. Just watch the following video to see how to do it right.

Karl Denninger narrates as we watch our very own SPX index manipulated higher over the night of July4th-5th.

As an aside, I found nothing in the new finance reform that would correct this kind of crap. Then again, it is already against the law. Like Denninger is often saying: Where are the cops?

(edit: Look HERE for background info on the title of this post.)

Between 1945 and 1998 more than 2000 individual nukes have been detonated on this planet. Check it out in the visual timeline below (requires Flash). Be sure to watch it through to the very end.

Happy 4th of July, everybody.

So What The Heck Does That Mean To You?

(disclaimer) I am a voting Republican citizen of North Carolina.

North Carolina senators Hagan and Burr both voted to squash the amendment which would have banned naked short sales in financial markets. What does this mean to the residents of the Tar Heel State? It means that once again, the senator we’ve had for too long wants to let the big banks keep fleecing us like lambs.

How long is too long? He was elected in 2004… how has that worked out for you and the folks you know? Are you better off now than you were 6 years ago?

Naked Shorts

To understand how this latest vote betrays you to the banks, you need to understand exactly what a short sale is. From Wikipedia:

In finance, short selling (also known as shorting or going short) is the practice of selling assets, usually securities, that have been borrowed from a third party (usually a broker) with the intention of buying identical assets back at a later date to return to the lender. The short seller hopes to profit from a decline in the price of the assets between the sale and the repurchase, as the seller will pay less to buy the assets than the seller received on selling them. Conversely, the short seller will incur a loss if the price of the assets rises. Other costs of shorting may include a fee for borrowing the assets and payment of any dividends paid on the borrowed assets. Shorting and going short also refer to entering into any derivative or other contract under which the investor profits from a fall in the value of an asset.

Naked short selling has an insidious twist:

Naked short selling, or naked shorting, is the practice of short-selling a financial instrument without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale. When the seller does not obtain the shares within the required time frame, the result is known as a “fail to deliver”. The transaction generally remains open until the shares are acquired by the seller, or the seller’s broker, allowing the trade to be settled.[1] Naked short selling can be used to fraudulently manipulate the price of securities by driving their price down, and its use in this way is illegal.

Did you get that? Short sellers are required to borrow the shares sold within a certain time frame (usually about 3 days). Until this time passes, it’s just a short trade. Once the seller fails to borrow the shares, it’s considered a “fail to deliver”, but the transaction is not cancelled. The seller is still allowed to ‘sell’ shares that don’t even exist.

How can something that doesn’t exist ever be sold at all? The standard stupidity says that it’s okay – when the shares are bought back at the end of the trade, it’s mathematically the same as destroying those nonexistent stocks, so the net sum is a zero. But this ignores the fact that, for as long as those ‘nonexistent’ stocks are in fact, counted as REAL, the price of that stock IS manipulated downward.

Let’s see how this works in a simplified market.

Paper Beats Rock

Assume I have 10 special rocks, and the value of them all together is 10 bucks. If I sell them, the value of each is a dollar. If someone comes along and says there are really 20 special rocks and he has 10 of them for sale at half price, then the value of each of my rocks will go down by 50%, EVEN IF NOBODY BUYS THEM. My rocks haven’t changed, but the perception now is that since there’s so many rocks they shouldn’t be worth that much, and this guy over here says he’ll sell them for 50 cents. My net worth based on rocks has just gone down by 50 percent, due to some lying asshat who wanted to take my stuff.

Now, let’s further assume that this jerk actually sold some of his rocks, constituting a short sale in the special rock market. The buyers expect delivery of said rocks. (Remember, this guy doesn’t have any real rocks.) The only place that rock can come from is me. What happens if I won’t sell any rocks?

Think about that and then think about the ‘freeze’ in the credit markets in 2008. If rocks were dollars, the same thing would happen in my little story. The whole rock economy would tumble and fall. The reason is simple: So many non-existent rocks exist, and so many people have bought them. The real rocks aren’t for sale anymore, so there’s literally NO WAY anybody will get any part of what they’ve paid for. So many bought what they thought were rocks, but all they got were paper promises.

OK. Enough said.

From the UN website:

On December 10, 1948 the General Assembly of the United Nations adopted and proclaimed the Universal Declaration of Human Rights the full text of which appears in the following pages. Following this historic act the Assembly called upon all Member countries to publicize the text of the Declaration and “to cause it to be disseminated, displayed, read and expounded principally in schools and other educational institutions, without distinction based on the political status of countries or territories.”

So, for no particular reason (other than that, as I read this tonight it struck me how many UN members seem to have forgotten signing it), Wordout is pleased to disseminate and display the following Universal Declaration of Human Rights.

PREAMBLE

Whereas recognition of the inherent dignity and of the equal and inalienable rights of all members of the human family is the foundation of freedom, justice and peace in the world,

Whereas disregard and contempt for human rights have resulted in barbarous acts which have outraged the conscience of mankind, and the advent of a world in which human beings shall enjoy freedom of speech and belief and freedom from fear and want has been proclaimed as the highest aspiration of the common people,

Whereas it is essential, if man is not to be compelled to have recourse, as a last resort, to rebellion against tyranny and oppression, that human rights should be protected by the rule of law,

Whereas it is essential to promote the development of friendly relations between nations,

Whereas the peoples of the United Nations have in the Charter reaffirmed their faith in fundamental human rights, in the dignity and worth of the human person and in the equal rights of men and women and have determined to promote social progress and better standards of life in larger freedom,

Whereas Member States have pledged themselves to achieve, in co-operation with the United Nations, the promotion of universal respect for and observance of human rights and fundamental freedoms,

Whereas a common understanding of these rights and freedoms is of the greatest importance for the full realization of this pledge,

Now, Therefore THE GENERAL ASSEMBLY proclaims THIS UNIVERSAL DECLARATION OF HUMAN RIGHTS as a common standard of achievement for all peoples and all nations, to the end that every individual and every organ of society, keeping this Declaration constantly in mind, shall strive by teaching and education to promote respect for these rights and freedoms and by progressive measures, national and international, to secure their universal and effective recognition and observance, both among the peoples of Member States themselves and among the peoples of territories under their jurisdiction.

Article 1.

* All human beings are born free and equal in dignity and rights.They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood.

Article 2.

* Everyone is entitled to all the rights and freedoms set forth in this Declaration, without distinction of any kind, such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status. Furthermore, no distinction shall be made on the basis of the political, jurisdictional or international status of the country or territory to which a person belongs, whether it be independent, trust, non-self-governing or under any other limitation of sovereignty.

Article 3.

* Everyone has the right to life, liberty and security of person.

Article 4.

* No one shall be held in slavery or servitude; slavery and the slave trade shall be prohibited in all their forms.

Article 5.

* No one shall be subjected to torture or to cruel, inhuman or degrading treatment or punishment.

Article 6.

* Everyone has the right to recognition everywhere as a person before the law.

Article 7.

* All are equal before the law and are entitled without any discrimination to equal protection of the law. All are entitled to equal protection against any discrimination in violation of this Declaration and against any incitement to such discrimination.

Article 8.

* Everyone has the right to an effective remedy by the competent national tribunals for acts violating the fundamental rights granted him by the constitution or by law.

Article 9.

* No one shall be subjected to arbitrary arrest, detention or exile.

Article 10.

* Everyone is entitled in full equality to a fair and public hearing by an independent and impartial tribunal, in the determination of his rights and obligations and of any criminal charge against him.

Article 11.

* (1) Everyone charged with a penal offence has the right to be presumed innocent until proved guilty according to law in a public trial at which he has had all the guarantees necessary for his defence.
* (2) No one shall be held guilty of any penal offence on account of any act or omission which did not constitute a penal offence, under national or international law, at the time when it was committed. Nor shall a heavier penalty be imposed than the one that was applicable at the time the penal offence was committed.

Article 12.

* No one shall be subjected to arbitrary interference with his privacy, family, home or correspondence, nor to attacks upon his honour and reputation. Everyone has the right to the protection of the law against such interference or attacks.

Article 13.

* (1) Everyone has the right to freedom of movement and residence within the borders of each state.
* (2) Everyone has the right to leave any country, including his own, and to return to his country.

Article 14.

* (1) Everyone has the right to seek and to enjoy in other countries asylum from persecution.
* (2) This right may not be invoked in the case of prosecutions genuinely arising from non-political crimes or from acts contrary to the purposes and principles of the United Nations.

Article 15.

* (1) Everyone has the right to a nationality.
* (2) No one shall be arbitrarily deprived of his nationality nor denied the right to change his nationality.

Article 16.

* (1) Men and women of full age, without any limitation due to race, nationality or religion, have the right to marry and to found a family. They are entitled to equal rights as to marriage, during marriage and at its dissolution.
* (2) Marriage shall be entered into only with the free and full consent of the intending spouses.
* (3) The family is the natural and fundamental group unit of society and is entitled to protection by society and the State.

Article 17.

* (1) Everyone has the right to own property alone as well as in association with others.
* (2) No one shall be arbitrarily deprived of his property.

Article 18.

* Everyone has the right to freedom of thought, conscience and religion; this right includes freedom to change his religion or belief, and freedom, either alone or in community with others and in public or private, to manifest his religion or belief in teaching, practice, worship and observance.

Article 19.

* Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.

Article 20.

* (1) Everyone has the right to freedom of peaceful assembly and association.
* (2) No one may be compelled to belong to an association.

Article 21.

* (1) Everyone has the right to take part in the government of his country, directly or through freely chosen representatives.
* (2) Everyone has the right of equal access to public service in his country.
* (3) The will of the people shall be the basis of the authority of government; this will shall be expressed in periodic and genuine elections which shall be by universal and equal suffrage and shall be held by secret vote or by equivalent free voting procedures.

Article 22.

* Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.

Article 23.

* (1) Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.
* (2) Everyone, without any discrimination, has the right to equal pay for equal work.
* (3) Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection.
* (4) Everyone has the right to form and to join trade unions for the protection of his interests.

Article 24.

* Everyone has the right to rest and leisure, including reasonable limitation of working hours and periodic holidays with pay.

Article 25.

* (1) Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.
* (2) Motherhood and childhood are entitled to special care and assistance. All children, whether born in or out of wedlock, shall enjoy the same social protection.

Article 26.

* (1) Everyone has the right to education. Education shall be free, at least in the elementary and fundamental stages. Elementary education shall be compulsory. Technical and professional education shall be made generally available and higher education shall be equally accessible to all on the basis of merit.
* (2) Education shall be directed to the full development of the human personality and to the strengthening of respect for human rights and fundamental freedoms. It shall promote understanding, tolerance and friendship among all nations, racial or religious groups, and shall further the activities of the United Nations for the maintenance of peace.
* (3) Parents have a prior right to choose the kind of education that shall be given to their children.

Article 27.

* (1) Everyone has the right freely to participate in the cultural life of the community, to enjoy the arts and to share in scientific advancement and its benefits.
* (2) Everyone has the right to the protection of the moral and material interests resulting from any scientific, literary or artistic production of which he is the author.

Article 28.

* Everyone is entitled to a social and international order in which the rights and freedoms set forth in this Declaration can be fully realized.

Article 29.

* (1) Everyone has duties to the community in which alone the free and full development of his personality is possible.
* (2) In the exercise of his rights and freedoms, everyone shall be subject only to such limitations as are determined by law solely for the purpose of securing due recognition and respect for the rights and freedoms of others and of meeting the just requirements of morality, public order and the general welfare in a democratic society.
* (3) These rights and freedoms may in no case be exercised contrary to the purposes and principles of the United Nations.

Article 30.

* Nothing in this Declaration may be interpreted as implying for any State, group or person any right to engage in any activity or to perform any act aimed at the destruction of any of the rights and freedoms set forth herein.

Anti-iPad anti-porn… kudos to GoDaddy for a great commercial.