September 15, 2008
I may be howling at the moon here but I see the naked short to be another component of the biggest problem affecting the US economy today, a broken credit ecosystem. From urging people to become homeowners and spend with credit to its own out of control spending, the federal government has been far too comfortable using money it doesn't have. The failures we have in the private sector are foreshadowing of what will come to society if we don't stop this irresponsibility!
Naked shorts are another very destructive way of abusing credit at best. If I sold YOUR house today because I was sure that I could buy it back next week at a lower price would that be OK with you?
Naked shorting must be prohibited.
Please move on this quickly!