May 4, 2009
Naked short selling should be illegal. Normal investors cannot do it without having ample money in their account to actually buy the stock. It is unfair to the small investors to allow hedge funds and other large investors to naked sell a stock into oblivion. Anyone who owns the stock is negatively affected, while the short selling bandits are allowed to run off with ill-gotten gains at all honest peoples expense.
Supposedly the short selling bandits must first "borrow" the stock from someone else .... oh really ... who would be stupid enough to loan stock to a short seller so that they could drive down the price of the stock that they own.
This could only happen if the owner was getting offsetting compensation from the short selling bandits ... or perhaps, worse that the owners were partners in crime with the short sellers. I think that is called collusion and
market manipulation. I don't see how anyone without some hidden agenda or interest could consider this type of activity anything but criminal and immoral and unpatriotic.
You MUST restore some version of the uptick rule also.
Bear in mind that prices are now in cents. Therfore the uptick required should be at least 20 cents.