August 1, 2008
As an active trader for 30 years I have often explained to new commers what short selling is.A few years ago I read an article when one of the stocks I owned was on a naked short selling list.
I can hardly tell you how pissed off I was when I found out what was really going on. Naked short selling is the same as Issuing more shares of a Company without the companies concent. It is selling something that you do not own. It is blatantly illegal to sell something you don't own.
After reading several more articles lately about short selling I have come to the conclusion that all short selling is a scam and should be illegal. It is no different than selling a car that you borrowed. You have no right to sell a car you don't own, and you shouldn't be able to sell a stock you don't own because you don't have legal title.
It is time to do the right thing and abolish all short selling. Those involved are criminals and should be treated as such.
Dave