Ladies and gentlemen, this is a cataclysmic event. This is financial political earthquake and it's happening right in front of us. The thing that just came out on cnbc is the mind-blowing video just a month and a half ago. This kind of clip would only exist in the science fiction book.

What i'm about to show? You is going to blow your mind beyond any proportion. We have mainstream media talking to an scc official, actually confirming that naked shorts actually exist in the marketplace today. Even though they're illegal, that kind of a discourse would not have been possible just a month ago, and a lot of credit deserves to the ape community. A lot of credit reserves to the game, sub community and a lot of credit deserves to west christian.

The litigator, by the way, wes if you're, watching my videos, please come on the show, reach out to me. I'd love to interview you, i think, you've been monumental in making this a mainstream media topic. West has completely mainstreamed this topic into existence. Now we have the sunlight coming to sanitize all this and that's a massive achievement for both the gamestop and the amc communities.

Now the other part is before we show you. The video i got ta give credit to cnbc and melissa lee, which is something i'm not really enjoying doing, because you know it's cnbc and it's melissa lee, but hey good for them. This clip was out of the park, they definitely killed it and they did their journalistic work and i am not a butt kisser, i'm also not a hater when they do something right, i'm going to give them credit and they deserve credit. And if you don't like me, giving them credit? Well, you i don't give a now.

I'm gon na play with this clip and then i'm gon na share with you my opinions, my reactions you like them, you don't like them again, don't care! I'm just gon na tell you what i think about it. I'm gon na keep it real. The other thing is, i just want you to focus on the clip, so you know the drill, no clicking, no smashing no buying no subscribing. Let's just give our full attention to this clip because it is extremely important.

The things that are being said here are nothing short of revolutionary i've, never heard of an sec official and a mainstream media. Reporter talk like this, this is insane you have to see this now. I've talked too much, i ramble too much. You know these are the landings of a madman and, as you know, this is just my opinion.

Like everything else on this channel, just my opinion might be knackered might be true, as i mentioned might be the ramblings of a madman. You have to do your own research. You have to find out for yourself allegedly blah blah mother effing blah. Let's start the video shorting still front and center in the reddit trade, many pointing to the recent swings in amc being driven by so-called naked shorts, the illegal practice of short selling a stock without actually locating that stock.

To borrow so is naked. Shorting happening in this market, our next guest says: yes, it is, let's bring in jacob frankel former sec, invest enforcement lawyer now. First of all, this is the first moment that absolutely deserves my attention, and i think melissa here deserves a lot of credit. She could have gone either way here.

She could have asked him the question and wait for an answer, but the fact that she chose to answer and said yes, it exists, shows a a lot of guts, a lot of courage, a lot of integrity and also she's kind of communicating to you. The ape community and the gme community that she's with you, otherwise she would have never answered in her own question jacob great to have you with us good to be back with you simple, as that naked shorting exists in this market, even though it's an illegal practice. Well, it's not entirely illegal, but yes in the large cap market, it absolutely would be uh illegal if they, if a party is unable to locate the shares, borrow the shares deliver the shares. Yes, under those circumstances, um it is illegal and it's something that's been going on in the market for a long time.

What he's talking about here by the way just to clarify is that it's not illegal for market makers to make it short to create liquidity. But that's a whole different thing that is legal, we're talking about the hedge funds, the brokerages, and what he's about to say right now that that is definitely illegal, and that is definitely going on which are really important things, especially when they're being said by a former Sec enforcement lawyer and it's something that's been going on in the market for a long time. What really has happened here is companies like gamestop amc. All these meme stocks have brought naked short selling, really to the forefront of the market's interest.

This thing is going on for a very long time in a small cap market and it's very much a problem. So he admitted here that this has been going on for a long time, which is kind of an indictment against himself as well, because he was part of the sec. We've all been saying this that the sec have been asleep at the wheel about naked shooting west christian have been saying that we all been saying it now. You have a former sec official, actually admitting it, and i think he deserves a lot of credit for not trying to run away from the problem.

He's also given respect to the amc and gme community, basically saying, even though these are meme stocks, which i hate that he said, because i think it's a ridiculous term he's actually saying that these stocks and this whole hoopla is what brought attention to this problem. Actually, helping find the solution so he's not running away from his own responsibility. He is admitting that they up and he's given credit to these communities for shedding light on this problem. Let's keep watching is it? Can you give us an idea of how big of a problem you said it's existed for a long time? Is it rampant? Is it in in small pockets of the market? Why isn't the sec doing something about it? If it is, in fact illegal melissa is killing it in this interview wow.

This is a really hard ball question. She could have gone soft on him, but this is a horrible question. What you need to understand here is that that letter part is the only thing that counts, she's, basically saying well, why the did you do anything about it and why the the people who are in charge right now are not doing anything about it. That's a horrible question: wow she's not pulling any punches.

The short answer is, i think, it's difficult to find and it's also not a sexy type of case i mean the fact is: the scc has not brought many naked short cases. I mean they did bring one about three weeks ago uh. So in 2021 it took four years for the sd to bring that case 2012 pace against the wolfton brothers same thing. It took the sec five years to bring a case and what they charged were stock.

Locate issues order, marking failure to borrow delivery violations, we're not seeing charges of fraud or manipulation. I think the reason for that is these cases are hard to find they're tedious to put together, and it really is a challenge for the yes to bring these cases. But now that it is in the discussion, hopefully we will see more naked court cases and particularly seeing it charged as fraud or manipulative activity. There's a lot to unpack here.

First of all, he's admitting that what west christian said is exactly correct, that these guys are getting sued, they're, paying fines and it's just the cost of doing business. It keeps going on and on the other part here, which i think is even more telling - and i have to be honest - this dude really impresses me with his integrity, he's basically saying well. This is not a sexy thing to prosecute, i mean, as an sec, litigator you're not going to build a career out of naked shorting, because a you're going after very powerful people with a lot of clout with a lot of influence, they're gon na you up. Also, it's very long, four to five years, also your odds of actually proving this is very hard because you're going again against people with a lot of resources that know how to hide their trail.

So it's definitely a counterproductive lawsuit. If you're trying to build a career as an sec lawyer now, what he's actually saying here is that now it's sexy now it's an open now everybody's talking about it. It's high profile. You can actually make a career out of it.

Now, you're going to see a lot of people suing it which, in my mind, even though it's despicable to think about it, that this is how it works. He actually deserves a lot of credit for being honest and calling it like it is whatever the case may be, that still changes the balance of power. I love it. It's karen thanks for being on, so it's like switching the dillard on the blackjack table.

It's like the executive and cnbc called up. Hey, take melissa off there. She's asking two tough questions get somebody else. There get somebody else there.

They just switch the dealer. What the just happened, where's melissa. I want her to keep asking questions. We really don't know because a lot of it turns on you know on on a it's.

A very firm specific analysis is there coordination is there manipulative activity? The issue is identifying it and the people who see it or see it most closely are those who are in the market, and the question then, is: are they willing to bring that information directly to the attention of the sec, which often then means also poking around? In that company's books, he's basically saying well, there's an evidentiary difficulty with these things and the only people who can actually help us is people who will essentially testify against their friends their buddies. The people who they do business with, but also they're, probably part of it because they probably did it themselves so they're about to get once we start digging around so they're, never going to say anything. That's the kind of cycle of that exists here and again a lot of respect for him for actually saying that the other part is which i think he's not saying is that you can easily eliminate this just demand a hard locate for every short sale. That way, you don't need to chase these guys how hard locate you have to have the fiscal share.

If you want to short it what's the problem, by no means do i want to suggest the sec, you know has turned a blind eye. On the other hand, we really have not seen that many cases over the years involving fraud on the short side. Now this is kind of amusing because he actually says something politically correct to cover his asp, but then he actually says what he's thinking he says. Well, of course, i'm not suggesting that they're blah blah blah blah, but look at the results as the results come well.

They don't really doing jack about it, which is the actual thing you wanted to say without offending anybody without getting into trouble. I like how you say you: don't you don't want to say the sec is turning a blind eye, but basically implying that the sec is turning a blind eye, because that's exactly what you're doing jay i mean. If i'm watching this, i'm thinking, you know what the sec doesn't want to investigate the source of so many tips that it gets into other um, manipulative practices or deceptive practices, etc. Yes, yes, yes, i like melissa.

I like her a lot. I didn't see that part of the clip i just said the first 10 seconds when we started this is golden. I think melissa is killing it wow, i'm so annoyed by this, but they're missing. The whole point here trying to enforce a bad law is a bad idea, as he explains the enforcement is horrible.

The evidentiary duties are insane. It takes us five years to change the law. Chancellor, you require a hard look at. You won't need to chase these guys.

Melissa killed it in this interview. She absolutely killed it. This dude came on ready. He spilled everything.

He was insanely honest. I think he missed the idea of actually preventing bad laws from being in place, but i mean it's not his job. I mean it's simple. He's a former sec enforcement lawyer, he just admitted that naked shorts exist in the market.

He admitted that scc are dragging their feet for all sorts of reasons, and he admitted that this needs to actually be solved because it's causing a lot of damage to the market and he's been very honest both for the past and the future of this. Basically saying hey dear legislators, the onus is on you to actually solve this, and i agree so kudos to melissa kudos to this guy. I mean they killed it. I can't believe i'm giving compliment to cnbc if anybody wants to unsubscribe because they give a compliment to nbc.

I mean you, i don't give a in any case. I hope you all enjoyed this a huge shout out to our channel members and our patrons. If you want to enjoy our 30 stocks in 30 days against inflation project, which is going crazy right now, you can join it on our patreon page, it's five bucks per month. You can sign up, take the three companies and leave with five bucks.

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