April 1, 2008
I fail to see why short selling is legal at all. If an investor wishes to bet that a stock is going down, they can buy a put for the current price.
Eliminating short selling entirely would simplify brokerage procedures, and stop the predatory, destructive practice of naked short selling. For the SEC to allow naked short selling under any rules, however, is an incredible dereliction of your responsibility to referee fair markets, and it breeds a cynicism about our financial markets that is not good.