May 9, 2009
As a private longer term investor, I have been the victim
of short sellers i.e people who have no stock and no stake in society, some are even naked shorts, their sole goal being the destruction of quoted companies which have taken years to build and this making great gains out of destruction...the stock markets are not capable of withstanding what amounts to an extreme concerted attack on say thefinancial sector...these shorts take position against the companies via CDS and spreading false rumors thus making huge gains by creating what amounts to financial destruction.I am in favor of free markets, but
they are too fragile and interconnected and were not intended to withstand this concerted short selling and rumor mongering.
I am in favour of rules that would bring a fairer more stable playing field:
1. large short positions to be disclosed, especially by those who go on the media pronouncing gloom and doom.
2.the uptick rule should be re-instated.
3.It must be made illegal for concert parties i.e Hedge
funds who gang up and attack a quoted company together with massive shorting.
JMYB