A quick primer on what naked short selling is. First of all, short selling, which is a completely legal and even beneficial activity, is when an investor bets that the value of a stock will decline. You do this by first borrowing and then selling the stock at its current price, then returning the stock to your original lender after the price has gone down. You then earn a profit on the difference between the original price and the new, lower price.
What matters here is the technical issue of how you borrow the stock. Typically, if you’re a hedge fund and you want to short a company, you go to some big-shot investment bank like Goldman or Morgan Stanley and place the order. They then go out into the world, find the shares of the stock you want to short, borrow them for you, then physically settle the trade later.
But sometimes it’s not easy to find those shares to borrow. Sometimes the shares are controlled by investors who might have no interest in lending them out. Sometimes there’s such scarcity of borrowable shares that banks/brokers like Goldman have to pay a fee just to borrow the stock.
These hard-to-borrow stocks, stocks that cost money to borrow, are called negative rebate stocks. In some cases, these negative rebate stocks cost so much just to borrow that a short-seller would need to see a real price drop of 35 percent in the stock just to break even. So how do you short a stock when you can’t find shares to borrow? Well, one solution is, you don’t even bother to borrow them. And then, when the trade is done, you don’t bother to deliver them. You just do the trade anyway without physically locating the stock.
Darell Issa Puts Old Leaked TPP IP Text Up For Discussion
We’ve written a few times now about Rep. Darrell Issa, and the Madison platform his office has set up to allow for crowdsourcing opinion on legislation and other government documents. He originally used it for his OPEN Act, but then later posted the text of ACTA as well. His latest move is to post the leaked text of the US’s negotiating position on TPP. This is the same text that leaked out last year. It would be nice if the USTR did something like this itself with the latest text, but that’s not how USTR Ron Kirk works. To him “transparency” is only sharing the text with big industry special interests, and declaring it a matter of “national security” if anyone else wants to see it.
Life lessons for the office
Clayton Christensen achieves the difficult feat for a tall, broad man of being at once imposing and humble. When I visited him last autumn at Harvard Business School, he laid out with quiet authority his latest thoughts on disruptive technology, the concept that justly made him famous in the mid-1990s. But he also took time to chat about his son’s college basketball team, a poster of which hangs on one wall of an office full of family photos and memorabilia.
While he places great value on his family and faith – he is a devout Mormon – his research and teaching have dominated his public story. Until now, outside the Acknowledgements section, he has never tried to put his personal and professional lives in the same book.
An Extended Interview With Steve Coll
New Yorker staff writer Steve Coll’s last two books, Ghost Wars and The Bin Ladens, were, as he puts it, big projects about closed institutions—the Central Intelligence Agency and the Middle East’s most famous family, respectively. His latest peek behind tightly drawn curtains, Private Empire: ExxonMobil and American Power, is a detailed examination of the influential Irving-based oil corporation. ExxonMobil is famously reticent about its operations, and, as Coll explains in this interview, penetrating the company’s official PR line proved challenging, even for an experienced reporter.
Reporting on Exxon can be so difficult—the company is famous for being secretive and cultish. Can you talk a little about the difficulties of reporting this book?
I found Coll’s Ghost Wars to be an excellent read.
The “Greatest Films of All Time”
I am faced once again with the task of voting in Sight & Sound magazine’s famous poll to determine the greatest films of all time. Apart from my annual year’s best lists, this is the only list I vote in. It is a challenge. After voting in 1972, 1982 and 1992, I came up with these ten titles in 2002:
Aguirre, Wrath of God (Herzog) Apocalypse Now (Coppola) Citizen Kane (Welles) Dekalog (Kieslowski) La Dolce Vita (Fellini) The General (Keaton) Raging Bull (Scorsese) 2001: A Space Odyssey (Kubrick) Tokyo Story (Ozu) Vertigo (Hitchcock)To add a title, I must remove one. Which film can I do without? Not a single one. One of my shifts last time was to replace Hitchcock’s “Notorious” with “Vertigo,” because after going through both a shot at a time during various campus sessions, I decided that “Vertigo” was, after all, the better of two nearly perfect films.
Civil War Re-enactors; a Photo Project
Thought I would share a new personal project of mine. I found it interesting that most of these men look at their reenacting not as a hobby, but as a lifestyle. This could be the beginning of a bigger project about re-enactors, but for now it’s this… Hope you enjoy!
An absence of optimism plays a large role in keeping people trapped in poverty
THE idea that an infusion of hope can make a big difference to the lives of wretchedly poor people sounds like something dreamed up by a well-meaning activist or a tub-thumping politician. Yet this was the central thrust of a lecture at Harvard University on May 3rd by Esther Duflo, an economist at the Massachusetts Institute of Technology known for her data-driven analysis of poverty. Ms Duflo argued that the effects of some anti-poverty programmes go beyond the direct impact of the resources they provide. These programmes also make it possible for the very poor to hope for more than mere survival.
Robot Soldiers Will Be a Reality—and a Threat
Much controversy has surrounded the use of remote-controlled drone aircraft or “unmanned aerial vehicles” in the war on terror. But another, still more awe-inducing possibility has emerged: taking human beings out of the decision loop altogether. Emerging brain science could take us there.
Today drone pilots operate thousands of miles away from the battlefield. They must manage vast amounts of data and video images during exceptionally intense workdays. They are scrutinized by superiors for signs of stress, and to reduce such stress the Air Force is attempting shift changes, less physical isolation on the job, and more opportunities for rest.
Keukenhof Morning Panorama 2
Tap or click to view the panoramic scene. Then pan any any direction to view the entire 360 x 180 image.
10 Things I Have Learned
YOU Can OnLY WOrK FOr PeOPLe ThaT YOU LiKe. This is a curious rule and it took me a long time to learn because in fact at the beginning of my practice i felt the opposite. Professionalism required that you didn’t particularly like the people that you worked for or at least maintained an arms length relationship to them, which meant that i never had lunch with a client or saw them socially. Then some years ago i realized that the opposite was true. i discovered that all the work I had done that was meaningful and significant came out of an affectionate relationship with a client. and i am not talking about professionalism; i am talking about affection. i am talking about a client and you sharing some common ground. That in fact your view of life is someway congruent with the client, otherwise it is a bitter and hopeless struggle.