May 15, 2009
Apparently, we cannot trust the SEC to fix the problems of market manipulation. This is the same SEC that is responsible for recent negligence that borders on criminal complicity.
The current hearings the SEC is undertaking are a perfect example of this. By focusing the debate on the so-called uptick rule (which has little, if any, effect on the overall market), they are intentionally ignoring and distracting from the larger issues that prevent a level playing field.
The main issue that they refuse to address head-on is rampant naked short selling (hedge funds illegally selling phantom stock to destroy public companies for profit). In many cases, this is the market equivalent to buying fire insurance on a building and then burning it to the ground.
It is becoming obvious that these current SEC hearings are a distraction. Please do something to insure that the existing rules that explicitly ban illegal naked short selling rules are actually enforced for once. If not by the SEC (which time and again has shown itself to be corrupt), then by some other entity.