July 17, 2008
No investor or institution, should be able to short a stock, without having legal right to that stock. The, affirmative defense, that I though I could locate the stock, has led to massive abuses. Major corporations have been forced into liquidation, and the investing public bankrupted. I really hope I'm not enlightening anyone with this response, as the strategy has been to naked short financial, and run the price in oil, thus creating a virtual money making machine for Hedge Funds and Wall Street Banks, while destroying the American Family and the economy. This behavior as you well know has led to bailouts of Bear Sterns, Freddy Mac and Fannie Mae. Costing the tax payers billions possibly trillions.
Options traders should not be except, as they are the worst market manipulators out there. The third Friday of every month, just like God himself has intervened, the stocks move to their max pain levels. There is even a tool out on the internet, that is accurate on where a equities price will be, by calculating max pain.
http://www.optionpain.com/MaxPain/Max-Pain-CBOE.php
Put the crooks in jail, and allow no exceptions of any kind. You must borrow the stock, before shorting. There is no reasonable expectation.