August 13, 2008
"Naked" short selling is against the law. Yes, that is correct, but the law is being broken because nobody is responsible for catching or enforcing the shortsellers who are breaking the law for their own personnal financial gain. Could it be that the same people who are inforcing the law are the beneficial shortsellers, or party there to? I think that money talks and that big money is in control, and that big money that is in control, elects the law makers. The good news is that all records of stock transactions remain on the records, by law, for a good number of years. Now Congress or the SEC, or GAO, or/and FBI can identify all shortsellers who broke the rules and put them in jail and sell their assets to pay restitution to the stockholders of each stock position that suffered because of shorting of the stock. IT IS ALL DOCUMENTED AND SAVED, BY LAW, ASK THE IRS OR GAO.
No other asset that I know of, can be legally sold "other than shares of publicly traded companies" without legal ownership. Yes, that is naked short selling. You can't sell a car, without a title and you can't sell a house or property, without a deed. When an asset sale involves stock, you can sell stock without ownership and if you don't COVER(aquire the stock,(you did not own), at the time of sale), there is no penalty, just a cancelled stock transaction. THIS IS FRAUD. In most cases, shortsellers don't borrow the stock they sell short, before they short it. You see, you must have ownership prior to the sale for the transaction to be legal.