January 27, 2011
i think you are doing a great thing, going after these debt swap trades, where a broker is trying to avoid the deadlines to settle the trade by keeping the trade outstanding.
in addition, they should be required to disclose their position in this and disclose any other debt swaps that they have already entered into. this disclosure would show their creditworthiness.
they cannot give $ instead of securities because they are receiving $ from the broker that just bought the shorted sale. but they should also not allow sieges on a stock using naked shares because this inflates the supply of the # of shares trading in the market.
clearinghouses must clear.
i cannot believe that we have allowed these slimy practices to damage our economic system. people put their retirement in CD's, real estate and securities, primarily. we do not want a bunch of poor seniors who lost their nest egg to these slimy practices. shortsellers do not deserve the nest eggs. shortsellers are not making a statement against a particular stock so much as they are taking a position against investors. they manipulate the price of stocks by shortselling, reducing the bid price, and continuing not to buy in. it is amazing that they controlled price in the marketplace for so long.
the only thing they lack is a gun.
companies that commit fraud should lose their license to trade and the officers should lose their license to trade.
as we straighten out this mess, the world will follow.
kudos to you.