April 4, 2008
Why dont you guys just admit it? You broke it and now you cant fix it. You decided to clamp down on otc pump and dump schemes by crooked companies and let the market makers short as many shares as needed to control prices. But small retail buyers were showing up in droves, more every day. A lot of these buyers averaged down on losers, buying more and more as the price dropped. Hundreds of companies that used to have market caps of millions of dollars are now valued at less than the price of a new pickup truck. So you have a problem. If you start buying shares to cover the shorts on the open market the prices are going to start moving up. If the prices start moving up more buyers will come in and drive it up even faster. You have said many times that you are determined to prevent volatility and short squeezes no matter what. So the only thing left to do is revoke them all. Think up a creative new rule that these companies cant possibly comply with and shut them down. Wipe out the shareholders and tell them they should never have invested in such risky stocks. I see no other alternative. You will never cause the fake shares to be bought in. That is obvious. So lets just get it over with. By pretending to try to fix the problem instead of actually fixing it just makes you look stupid and makes people madder. One thing this country does not need right now is another reason to distrust the government.