Skip to main content

Lucas Kolasa Comment On Regulatory Notice 21-19

Lucas Kolasa
N/A

In my opinion... All investors from hedge funds, to retail investors to those considering investing in a stock should be able to see the exact same data that hedge funds, and clearing houses and brokers see. It should all be in real time and it should be free. This needs to include Dark Pool data. Short interest should be reported in real time, and the number of shorted shares should never exceed the actual amount of shares that exist. Additionally, brokers should not be able to write a clause into their platform that says they can short investors shares. Every time a broker wants to short shares its investors own, they should have to get expressed written permission every single time. IOU’s should be illegal. We have computers. If you cannot locate a share, it means it does not exist. IOU’s are not acceptable. You need to have proof the share is accessible before you short it. Because... the share price may be $100 and the people don’t want their shares shorted. But the broker hands out IOUs and the stock drops to $90.... and the investors then agree to allow shares to be shorted. But only because the IOUs manipulated the market... money talks. It is a form of psychological warfare. If the price went up to $120 or even if it sayed at $100 the investors could be happy with that. It is only when the price is manipulated to appear like a red day that people second guess their due diligence. And at this point, that is fair because there is a lot of information that hedge funds get in real time that is not shared with the retail investor for weeks on end. It baffles my mind that hedge funds ever lose. It is such a rigged market. Information is gold. And the market makers get the information and make decisions based off the truth... but you leave retail to guess. And then you you think about the order flow... it boggles my mind that it is 2021 and the stock market is this unfair. It is currently designed so it is easier for a trillionaire hedge fund to short sabotage a company into bankruptcy than it is for a person to see a small company with a good idea and try to invest in it, to help the company grow and manufacture their idea to make the world a better place. The stock market was invented to invest money to grow companies to make society better and to increase the nation’s gross national product so the USA can compete against the world, and improve the usa as well as the world by making and selling great products. Often times these companies need to support from investors to make these dreams come true. What I see, in 2021, is the ability for a hedge fund to completely sabotage any company they want. They have even weaponized free speech. Citadel, for example, is listed on Motley Fools website... in some way they work together. All Motley Fool has to do is write the magic words “in my opinion”, and it allows them to tell blatant lies about a company... then they spread across the internet and other blogs , newspapers and tv shows pick up on the story and spread the lies in order to cause panic selling. It is orchestrated in a way where the hedge funds already shorted the stock, and the hit piece is printed to get others to panic sell or join the hedge fund in shorting the stock. Hindenburg Research is notorious for doing this. I witnessed one of their court dates in NYC. The judge said Hindenburg Research could say the judge’s robe was pink, as long as they wrote “in my opinion”. In that court case Hindenburg Research said yriv didn’t own the property its buildings were on. And claimed there was no work being done and showed photos of a property that was not even where YRIV was located. First off, they were not even on YRIV’s property... they took photos on the lot next to yriv, that yriv had nothing to do with. Secondly nobody in China can own land... the government owns all the land. They did this on purpose and sabotaged the company.. from $15 down to 5 cents, which is where it trades at today. Yriv is in Wuhan. Maybe the USA should not allow the weaponization of free speech in order to sabotage companies. It is bad for foreign relations. Some time after it was shorted, the world went into a pandemic that started in Wuhan. Let’s look deeper into the weaponization of free speech... and weaponization of short selling. Imagine A country decides to crumble the US economy. All they have to do is send 100 business people to the usa. They reside here and gain ability to trade on stock market. Their banks get unlimited funds from their home nation (let’s say its an enemy nation of usa). So the 100 business people have unlimited funds from their government.. and they are sent to trade the stock market in UsA with the purpose of sabotaging the USA economy. So they hire bloggers, and write news articles to bash a company that is important to the UsA infrastructure. Lets call it company A. So they prepare their news articles, and blogs and set up segments with stock traders on tv. Each of the 100 people short the stock 1 million shares each, on day one, at different times.. to create the appearance that something is up. Then they systematically release the blogs and news articles.. all starting with the words: “in my opinion”, and they just blatantly lie... saying the company is falling apart with internal fighting and bad accounting, and selling company secrets etc.. just something obviously bad that would want to make investors get out of the stock asap. So the next day... each of the 100 short it a million shares each agains. This action would easily be interpreted as selling of the stock... because they believe the article is real. The psyops causes a panic sell... and the weaponization of words and short selling cause the company to tailspin into bankruptcy... and when that happens, the short sellers don’t even have to cover and shares cause the company is bankrupt. And that is crazy because a foreign nation could easily pull this off the way the stock market is set up today... and with “in my opinion” making lies legal. Not only could a foreign nation cause this catastrophe by bankrupting important infrastructure companies... but the foreign nation would also earn millions, maybe billions bu doing this. And the UsA government is so naive, they wouldn’t even realize they were under attack, because its legal. Short selling is basically insane. The stock market was made so we could invest and grow companies. That takes time. A ling investor should be focussed on growing the company... not being focussed on being attacked by short sellers. Especially those that weaponize free speech to manipulate the minds of the share holders. If i went into a movie theater and yelled: Fire! That would be illegal because if people ran out and got injured... it would be a result of their reaction to someone exclaiming there was a fire. There is a court case about that scenario.. its illegal. Now if i went into a movie theater and quietly said, “In my opinion” then loudly finished the sentence screaming “there is a FIRE!!!” And if people ran out and got injured... Am i protected under free speech because i said, “in my opinion”? No, it would be illegal. They established that. So in the case of the stock market... the injuries are extensive. Some people lose the profits they were trying to earn in order to have cancer removed from their bodies. Some people lose hard earned money they planned on using to buy food, medicine, have animals treated at the vet, for surgeries, etc. The damages are not only psychological, but it truly damages people’s lives. People lose jobs... kids go hungry. All because someone was allowed to lie about a stock in order to cause panic selling so they profit on their short position. They can literally pick any stock and do this. And then in the rare case retail traders fight back and buy more shares.... the people shorting the stock refuse to deliver the shares they owe. They have the money, they just don’t because they know they can simply try to starve out the little retail investor. Why can a hedge fund short shares while it is simultaneously failing to deliver on shares. If you don’t have the shares to cover what you owe, you 100% should not be allowed to short more share until your debt is paid off. If you say they are good for it, they meet margin requirements... well it is not only about their money. Its about the price per share for the entire market. That is market manipulation. There are tons of ways shorts manipulate the market. How about the order flows going through the dark pools. They process the sell ordered through NYSE to make price drop, but they process the buy orders through dark pools so the real price is not reflected in the NYSE price that the world sees. Also, if a share is shorted... people should instantly see that the shares were NOT sold... but those particular shares were Shorted. Because their is a magnificently huge difference. But to the average retail investor, it is impossible to know if the shares were shorted or sold. But the hedge funds know this information and that gives them a massive advantage. Its almost like a government agency should be processing ALL the orders and there should be a clear separation between people that can buy shares and those that process them. They should not even be allowed to really know each other. It should be a market place. All orders going through NYSE in realm time. Every buy order through NYSE in real time, as well as every sale. And if it is a short sale, it should appear in it own column... se the whole world can see it was shorted and not soldZ those contracts should be public and visible to all for free. If you cannot make it fair, then make short selling illegal. It is not a far fetched idea to make it illegal. I believe South Korea has made short selling illegal. I think the general consensus is that the tax payers never want to bail out hedge funds again. Hedge funds should play by the exact same rules that retail investors play by and all the information should be available to everyone in real time. If a retail investor cannot see it, then nobody should. Hedge funds can see when a retail investor places a sell limit order. Hedge funds have been known to hunt down these stop losses. They short the stock in order to trigger the sell limit orders. It is basically pick pocketing retail investors. I don’t know why i have to explain all this. There is so much more I can say. If you don’t know this, then you should be paying me. If you do know all this... why haven’t you done anything about it. We pay taxes which pays your checks, right? It is your duty to protect retail investors... and to protect the economy and the usa from sabotage. I explained such a simple scenario on how a foreign nation can attack the usa through its economy... you should probably call a meeting with the department of homeland security... and discuss it. Or simply do the job the SEC was assigned to do and make rules to prevent it. If you really want me to go deeper into all my thoughts on the market... just contact me. But I think you know more than me. You just have to take action. You can do it.