Ackman's Failure Signals Need for Anti-Crony Capitalism Regulation

Seemingly masterminded with the aid of Wile E. Coyote, billionaire crony capitalist hedge fund manager Bill Ackman of Pershing Square Capital Management, L.P. has catastrophically failed to destroy Herbalife Ltd (NYSE: HLF). His five (5) year effort to destroy Herbalife with a Billion Dollar gamble to short sell Herbalife stock and destroy the company and its owners, investors and citizen distributors has ended in a personal debacle causing massive layoffs and redirected strategies for Pershing Square.

Ackman’s plan or scheme was simple: to blatantly destroy Herbalifes stock value, and cash in on the plunder of Herbalife’s dead body. Ackman attempted to profit on the backs of the American investing and working public that rightfully sees multi-level marketing opportunities as a traditional and legitimate beacon of hope that his silk stocking ilk cannot comprehend. He set out over five (5) years ago to purposely eradicate Herbalife, along with the financial investment, profit expectations, business opportunities, property values and hopes and dreams of millions of lower and middle-class innocent American citizens who owned and worked for Herbalife.  

Pershing Square and Ackman are losers, despite their scorched earth efforts to obliterate Herbalife that included financing a D-Grade self-promoting propaganda feature documentary defaming and demonizing Herbalife; public threats of prosecution of Herbalife through criminal process and potentially crippling administrative action arising from a Democrat U.S. Senator in Ackman’s pocket; and, SEC, FTC, and State Attorneys’ Generals investigations. Pershing Square and Ackman spent $50,000,000.00 to put in the fix and failed. Anticipating profits from his command center,

Manipulation of the stock market by billionaires for profit and sport through shorting a stock and then enlisting Congress, government regulators and the media to win the bet is cheating. Make no mistake, corporate death, ruin, and destruction are generally the intended outcome in Ackman’s game.

The process of shorting stocks is a game for only the wealthiest of the wealthy. The process of shorting stocks has been left essentially unregulated because the prevailing popular wisdom amongst regulators is that the use of short selling is a self-regulatory mechanism whereby stock fraud is rooted out by private investors who profit by pocketing the difference in value of the shorted stock upon its decline in price due to the exposure of the fraudulent company. Regulators love this idea, and permit investors engaged in shorting a stock free reign without oversight. This blind-eye neglect by regulators is just another manifestation of crony capitalism whereby the government disregards the public weal and helps the wealthy elite secure private profits.

There is no transparency in these lawless Crony Capitalist corporate raider war rooms, the market benefit theory only works as a concept. Greed is the driving wheel of the Short Sell Machine of forced ruin. Hence, many companies find themselves to be victims of false charges by predatory short sellers.  The investing public, the general public and the American economy are all victims of this shadowy practice through unnatural investment losses, job losses, reduced taxes paid and co-opting of governmental resources by a handful of bloated crony capitalists whose sole purpose is to feast on the corpses of the otherwise economically viable companies they kill off.  

Astoundingly, short sellers are not required to disclose their shorted positions. Investment firms, such as Pershing Square, while required to disclose their long positions in equities, stock options, or notes/convertibles are not required to disclose their cash or short positions. Short positions remain cloaked in darkness and secrecy. Query whether it is a good idea for regulators to aid the wealthy and powerful to operate in secret on matters that enrich them if the public interest is harmed.

Therefore, Congress must draw back the curtains and mandate short-seller disclosure requirements that are not less than those currently required of “normal” long-term investors who seek and hope for the investment rewards reaped of profits as opposed to those who labor for losses and financial ruination. These disclosure requirements would entail public filings in which investors who hold more than 5% of a stock must disclose their ownership stake, even if those investors are short sellers seeking to destroy. Additionally, disclosure of short sell activities of company insiders should be required regardless of ownership interest.

The seminal American jurist Mr. Justice Louis Brandeis famously said: “Sunlight is said to be the best of disinfectants”. Transparency brings light and permits oversight, which fosters fairness and preserves liberty.  Ackman and his grave-robbing kind despise the cold light of day that follows transparency. Therefore, Congress must act to pass legislation that introduces transparency into the short sell process.  It is time to let the sunshine in and render the Ackmans of the market powerless to pull the levers of power in secret and darkness.

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ALERT ALERT

GOP Activist Investigating Hillary Clinton’s Lost Emails
Found Dead — Apparent Suicide By Black Plastic Bag Republican activist Peter Smith was found dead in his hotel room in May 2017 in Rochester, Minnesota.

The hotel staff found Smith with a black plastic bag on his head. He was trying to obtain Hillary Clinton’s lost emails.

UPDATE: Mueller and Congressional investigators have interviewed Smith’s acquaintances several times. Our sources say there is much more to this story.

The Wall Street Journal reported:

Peter W. Smith, a Republican political activist and financier from Chicago who mounted an effort to obtain former Secretary of State Hillary Clinton’s emails from Russian hackers, died on May 14 after asphyxiating himself in a hotel room in Rochester, Minn., according to local authorities. He was 81 years old.

Mr. Smith’s body was found by a hotel clerk in the Aspen Suites hotel, located across the street from the Mayo Clinic, according to a Rochester Police Department report. An associate of Mr. Smith said that he had recently visited the clinic. A representative for the facility wouldn’t confirm if Mr. Smith was a patient.

Mr. Smith died about 10 days after an interview with The Wall Street Journal in which he recounted his attempts to acquire what he believed were thousands of emails stolen from Mrs. Clinton’s private email server. He implied that Lt. Gen. Michael Flynn, then serving as the senior national security adviser to presidential candidate Donald Trump, was aware of his efforts…

…The police report said Mr. Smith was found by a hotel clerk with a plastic bag around his head attached tightly with black rubber bands. Mr. Smith “left documentation on why he committed suicide, medical records, his written obituary, and life insurance” on a table in his room, the report said.

OMG

Massachusetts Man Arrested After Trying To Hire
A Hit Man On Twitter To Kill ICE Agents For $500

A 33-year-old lefty from Cambridge, Massachusetts named Brandon Ziobrowski was arrested Thursday after offering anyone on Twitter $500 to kill ICE agents.

Ziobrowski also expressed his desire to slit John McCain’s throat in several tweets.

FOX News reported:

A Massachusetts man was arrested in New York on Thursday after trying to hire a hit man on Twitter to kill ICE agents for $500 and sharing his desire to slit the throat of Sen. John McCain, federal officials said.

The U.S. Attorney’s Office for the District of Massachusetts said that Brandon Ziobrowski, 33, from Cambridge, Mass. was charged with one count of use of interstate and foreign commerce to transmit a threat and injure another person for the alleged Twitter posts this year.

Federal officials said Ziobrowski tweeted a murder for hire solicitation to kill Immigration and Customs Enforcement agents for $500, and repeatedly tweeted his desire to slit the throat of McCain, R-Ariz.

“The agents and officers out there enforcing federal laws are doing their job, plain and simple,” U.S. Attorney Andrew Lelling said at a news conference. “There is a difference between public debate and putting others in fear of their lives.”

Federal officials said Ziobrowski in March started tweeting threatening messages against federal agents that work for ICE.

On July 2, the 33-year-old allegedly tweeted: “I am broke but will scrounge and literally give $500 to anyone who kills ICE agent. @me seriously who else can pledge get in on this lets make this work.”

The Justice Department released a statement on the arrest of Ziobrowski:

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