Subject: File No. S7-12-06
From: Kenneth Thomas
Affiliation: Engineer, Pacific Missile Range

July 19, 2007

NFI has been on the REG SHO list for over a year with massive amounts of naked shorts and failures to deliver. The SEC has chosen not to enforce the mandatory close out of those positions as it should have. Now we have a very big problem for the market. NFI just announced a reverse split which will require shares to be turned in for a re-issue. NFI also announced that they will pay the REIT mandated dividend in Preferred shares series E. These two moves by NFI creates a major problem for those who have naked shorted and failed to deliver. They have no shares to turn in and they have no preferred to pay the div. So what are they to do ? The SEC all but guarantees that there can be no short squeeze on these miscreants as there should be. I.E.- make them pay back the money they stole from the retail investor. Not going to happen as the SEC protects the big money at the expense of the retail investor. So this in my humble opinion is what is going to happen. From the sanity check:
Invariably in all scams there are a certain number of folks who get it. My fear is that the folks who own the banking system and by extension Wall Street will try the gambit of crashing the system to take the nation's eye off the fact that trillions were stolen by the one and the same. If correct, we would see the sort of argument that, yes, mistakes were made, and larceny briefly ruled the roost, but for the good of the nation we must now put these trifles aside, and press on to the future, as we are faced with an emergency (financial collapse, contrived terrorist event, threatening dark skinned enemy nations, the enemy within, drugs, crime, spiraling energy costs, etc.) and can't afford to dilute the focus of our great nation.

The only way to make one's crimes, when caught red handed, seem trivial, is to contrive a greater state of emergency where past crimes pale compared to current calamity.

That's my bet once they are exposed. Make a bigger stinky. Compared to sewage flooding the streets, ripping off a few trillion will seem like a poot in the elevator.

I can see it now. "Yes, there were bad things done. Yes, there were a few bad men. But it wasn't the whole system. It was isolated. And besides, even if not, we are all stronger and better for it (them) and it's now time to move into the future, not dwell in the unfortunate past (translation: we won't give any of your stolen money back, dumbshits).

Anyone who has studied history will recognize this trend. It's always the same. Big power and money takes all, and then confesses (sort of) while keeping the spoils, and telling you that THIS TIME it really will be different.
So the question remains. What is the SEC going to do about this obvious stock manipulation. My feeling ? Nothing at all. Nothing. And the retail investor will again have lost their life savings in a very crooked market that the SEC will not properly regulate.