April 17, 2009
Shorting practice should be completely banned:
Shareholders used their savings bought equity assets, and deposited these assets to brokers. Brokers then sold these assests without letting shareholders know. It is steal
SEC has been bias in favor of short sellers, which destroyed equity market. Share holders always needs to disclose their long position, but short sellers never have to. They claim this is their strategy, can not be revealed, which is totally cheating. Why long positions are not a part of strategy? They investors assets, and they are afraid to be revealed - that is their strategy
Short sellers stole hundreds millions of dollars, when SEC found they were cheating, they were typically fined by ten or hundreds of thousand.
naked short is even worse, they are same as printing fake shares, it is no difference from printing cash
SEC has a law guard against naked short, but SEC never enforcing the law. Millions of share IOU exist in the financial system. It is the same as people who stole the investors' money, or same as printing fake shares.
SEC officers should be intelligent and capable. In a common sense, SEC officers may have directly or indirectly lobbied, bribed, or corrupted, by hedge funds, or even possibly directly involved with short selling for profits. FBI should investigate if these officers or their relatives have associated with the corruption.
SEC purposefully allow such a long time before taking actions, it is also common sense this long period of time can help their Hedge friends cover their short positions by scrificing regular American people's interests.
SEC is very much disappointing...