July 23, 2008
Naked shorting should be banned. The uptick rule should be reinstated. You really should listen to what Jim Cramer has to say on this topic. I would not advise you listen to him for stock selection. But from his past he has much experience in manipulating stocks he makes a lot of sense in the case of naked shorting and the uptick rule.
There is little difference between naked shorting and other forms of theft and fraud. It is selling something a person does not have a right to sell. If some sold a car they did not have a right to sell, the jury would quickly disposition them appropriately.
Why should it be so difficult to do the same for those who are shorting stocks without a firm borrow?
Naked shorting should be banned on all stocks. And if stocks are shorted without a firm borrow, it should be treated as a criminal offense.
The damage to investors and companies caused by naked shorting is to great for the SEC to avoid taking action covering all stocks.
Larry J. Manson