Oct. 08, 2022
October 8, 2022
The proliferation of aggressive shorting with opaque reporting allows institutions to make massive, unchecked bets against companies. Even with self reported short interest, the numbers often show that a companies stock can be shorted far beyond its actual float. When these positions are combined with swaps (which are currently unreported as well) the net result is a time bomb that, if the shorts become subject to massive loss, can severely damage an already stressed macro economic situation. This potential damage will certainly be felt by the unsuspecting public as their pensions and retirement vehicles can be effected by this reckless short selling. Secondly, the unsuspecting public deserves, in fact has a right, to know if the company that they choose to invest in has a large short position against the stock of said company. There is NO mechanism besides self reporting in quarterly documents how large a short portion an institution may hold. As an individual, EVERY put posi
tion that I hold is known to these very institutions that have no reciprocity in the economy of information. In addition, as seen by myriad SEC fines, these institutions can \"mistakenly\" mark short positions as long and not have the requisite shares to sell into the market. What is the result of these illegal, unreported positions? A fine with no admission of guilt and the resumption of business as usual. Lastly, the up to the minute reporting of short positions will finally allow some semblance of an equal playing field for the retail investors. A quarterly, opaque and unreliable reporting of these positions is anathema to the idea of a free and open market. The SEC is bound to assist those without the equality of opportunity in this market any other assertion serves only to protect the abusers of the system and continue to make it appear as if the institutions are the ones in need of protections rather than the individual.