February 17, 2009
Hello President, Senators, and News Media,
The SEC recently made stock short sales legal on a down-tick. This is causing wild downward movement in stock prices. The DJIA will, be up big, only to sell off big, late in the day. Short sales should only be allowed onup-tick, like in the past.
Several brokerages are allowing NAKED short sales, even Goldman Sacks. Naked short sales are illegal. Why does not the SEC prosecute them.
Each brokerage should be fined $100,000 for each short sale allowed. The SEC must investigate naked short sales, for all of 2008. The brokers allowing naked short sales must get jail time. Naked short sales are causing the massive market sell offs. Fines and jail time are needed, for all naked short sales in 2008. If the SEC refuses to act, then President Obama must act.
Here is the new law for short sales:
Every time a stock is purchased, the buyer should select ALLOW SHORT SALES or NOT ALLOW
If short sales are allowed, 20% interest should be paid to the owner of the stock, for allowing the short sale.
Brokerages should be fined, for allowing short sales against the stock owner's instruction for NOT ALLOWING SHORT SALES.
Naked short sales must be stopped. Stock owners must have the easy ability to prevent their shares from being shorted.