April 20, 2009
Short selling, especially naked shorting has damaged many stocks in an unfair way. The shorters spread falsehoods about the company they short on various message boards, such as Yahoo who post many comments that are very negative. A better product is destroyed so a few can make money shorting and help the competitors. I am surprised that such a system is even allowed as it hurts the competitive capitalist system unfairly and limits advances in technology simply due to those who have the most money ie. in monopoly nothing is created except the one and only winner. The system will not work until a level playing field with fair and equitable rules is instigated.
I have seen many companies destroyed by shorters with their sophisticated tactics.
Restoring the uptick rule and expanding it to the nasdaq and all stocks would be a first step.
The relationships between the hedge funds, some companies, and the shorters and market makers should be investigated and regulated.