March 25, 2008
The naked short rule amounts to stealing in my opinion. It allows the pros to manipulate the pps of stocks to their advantage. Often times they are short the stock and drive it into bankrupcy and never pay taxes on the gain to boot What a racket.
Naked shorting makes the stock market unfair for the retail investor. Reg sho has not dealt with this problem. The pros merely trade the stocks back and forth remove the stock from the list if pressured only to short it again and thus reset the clock on reg sho. When I buy a stock, I should own a share and not an IOU. Furthermore, if the american public new the truth of the manipulation that goes on with naked shorting they would be appaled and up in arms. Naked shorting is one of those dirty hidden secrets.
The elimination of the uptick rule was a big mistake as well. When will the sec finally do its job and level the playing field?