September 10, 2008
I find it unthinkable that the SEC has stood on the sidelines and allowed short sellers, particularly naked short sellers, to destroy the credibility of the financial marketplace as well financial institutions such as Fannie Mae and Freddie Mac. Taxpayers will now have to shell out untold billions because the SEC continues to allow institutions and hedge funds to short America's future. Short selling as a practice creates an artificial float for those shares that throws the supply demand curve out of balance. How many more banks will go under because the SEC has done nothing? Short sellers are not investing, they are gambling...with other peoples money and assets.