In March of 2007 Bloomberg News reported on a story of Phantom Shares. A tactic in short selling where as the broker sells discounted shares he doesn't actually have possession of. This news clip is a little over 25 minutes but incredibly educational. If you have a mutual fund, 401K, or just own some stock you may be in for a rude awaking even more so that the Madoff ponzi scandal. If you combine this issue with the Madoff scandal , mortgage crisis, the auto industry collapse, and the AIG bailout. You can begin to see how scary it can get.