July 19, 2008
This is related to release No. 34-58107, Amendment to Regulation SHO, on July 7, 2008. If I were to sell shares in my business or vaction home the SEC would quickly charge me with selling an "unregistered security." Any firm engaged in naked naked short selling is selling securities that were never registered with the SEC. Up until now the SEC has acted as enablers of this criminal practice.
If the SEC were interested in the integrity of US financial markets you would prosecute every instance of naked short sales. Your actions with this release are too little and too late. By now you have received many copies of Jim Sinclair's analysis of the proposal, which shows it will not stop this crime.
Everyone who understands the US financial markets knows they are a corrupt insiders game. Foreigners with money will sell American stocks and transfer their funds abroad. Only naive Americans will continue to invest here.