October 26, 2009
Short sales should be prohibited.
Current law allows someone to borrow shares from my account without my knowledge or permission, and sell them at a profit, to my detriment. IN NO WAY IS THIS FAIR OR EQUITABLE.
After the short sale, two parties apparently hold voting rights in the same stock. I have read that this technique has been used to manipulate control of a company by parties collaborating in the short sale. One party sells short, one party buys, and voting rights are obtained for free.
Short selling was most recently used to destroy the value of Lehman and Bear Stearns, causing their debt to be called. Short selling accelerated their demise, and worsened the economic impact on society. You and I are still paying for that act of greed.
It is most difficult to see corruption when it has been everyday business for a long time. In short, (pun intended), short selling is theft. I cannot see it any other way. It is your job to put a stop to it.