June 10, 2009
I am a main street investor. Over the past year I have seen my portfolio collapse by over 70% due to naked and traditional shorting. I have watched as the top 5 bids/asks are at ten thousandth of a cent increments. As a retail investor, I am not permitted to buy or sell at .xxxx of a cent. I must sit and watch as my orders go unfilled because of this manipulation, and have had my ability to trade freely in the market denied.
I have read enormous amounts of manipulative web postings, blogs and various articles about the impending failure of companies, imminent bankruptcies, and companies doomed for failure. Recently,Street.com's Adam Feuerstein made grave comments about a pharma stock article within minutes of its release. Where is Mr. Feuerstein's medical license? Or Motley Fool's article titled "5 Death Bed Stocks?" Many companies stock price have suffered greatly from these manipulative measures. There is even a published "Basher's Handbook" that teaches how to destroy stocks.
In the legal world false statements give rise to defamation lawsuits. Selling short amounts to conversion. Naked shorting amounts to theft. What are the penalties involved? Nada, zip. Rewards? Big profits. Apparently, I was misled when I learned it is not OK to break the law. My parents must have left out that those who belong to that certain class are EXEMPT from the law. My father would roll over in his grave if he were alive these past few years to see the country he fought for in WWII reward and promote such class division.
If I were to sell my neighbor's property, I believe I would be arrested, tried and convicted. Is this America, by and for the people or is this America, by and for the preferred financial class?
I do not believe simply reinstating the uptick rule will resolve the manipulative collapsing of companies' stock, when the preferred players can trade at a ten thousandth of a cent. Reinstate the uptick rule with a real monetary value. One that even main street investors can trade at.
Force these thieves to disclose their short positions. Create actual consequences and enforce them fiercely.
Not only have we had our tax dollars stolen and given to companies thrust into financial disaster due to greedy thieves, we have also had our investment dollars stolen. What is our reward? Oh yeah, loss of jobs, devalued unsaleable homes, destroyed financial security and tent cities popping up across America.
Do your job for American people. Not only the rich and powerful. After all, we pay your salary.