Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

The Greatest Financial Story Never Reported

We at Alpha Capital (alphacapitalny.com) provide advice on finance and also training. This post concerns one of the most important events in financial history and one that has never been reported before.

During 2008 and 2009, the Dow was dropping hundreds of points per day as the failure of AIG, Lehman and Bear, Stearns hit the news and no government action would stop the fall.

We were clearly heading into a great depression with potentially 25% unemployment for years.

Here are some statistics: On Oct 9, 2007 the Dow hit a high of 14,164. As usual, the market knew there was trouble before we did, starting to come down to into the 12,000 range by June, 2008. And then started to come down 50 to 100 points a day, even hundreds of points per day. It reached its low of 6,509 on March 5, 2009, less than a year later.

And then it suddenly bounced up almost 300 points the next day. And from there the market recovered. Back up into the 8,000. Now more than double that low.

A fellow who worked with Jim Cramer "called it" but he did not make it happen. What caused this extraordinary turn of history?

It was not the SEC. It was not the President. It was not Federal Reserve. I personally stood by while a man who is one of the most reviled people of Wall Street, the bogeyman, Congressman Barney Frank of the Dodd-Frank Bill said. "It is easier to know how to prevent this from happening again than from stopping it now."

Frank had a press conference and announced he would start investigating the naked short sellers. Now nothing intimidates a hedge fund manager than a Congressional Investigation. It was well known that hedge fund managers were shorting the stocks of companies, especially financial institutions, when there was no stock to short. This is called naked short selling and will drive the stock price down, down, down.

When Frank announced this pending investigation, the short selling stopped, and the market jumped almost 300 points the very next day. The first big gain in years.

So all of those on Wall Street who curse the name Frank have him to thank him for their daily bread.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.