August 1, 2008
Lets see if I have this right. Naked short sales are only illegal when it causes the price of the stock to go down. When done by MM's it is to preserve liquidity on a temporary basis.
Anyone paying attention to stock prices for the past two days 8-29 and 8-30 has to have noticed heavy buying volumes and large price increases as well as heavy selling and large price decreases in the same stocks. Yes. Naked shorting that has caused price declines or if I read it correctly, illegal naked shorting. All in the span of TWO DAYS. A junior chartist wouldn't miss this.
I'm just a speck of a retail investor trying like hades to understand just what the SEC sees, what it doesn't see and why it refuses to see and enforce the naked short sale rule.
Financial stocks have been everything but buried and then and only then did the SEC step in to grandstand their brand new naked short sale rule S7-20-08. Congratulations. Right on time. At the bottom. In fact, just in time for some heavy institutional buying. Thanks. For nothing.
So it's pretty obvious here who the SEC caters to. Who they buy breakfast, lunch and dinner for. And vice versa.