July 30, 2008
Naked short selling is thievery There is absolutely no way this practice can be justified despite the caterwauling from the hedge funds, their cohorts in the financial press and other major players who have long practiced this method of counterfeiting stocks.
One financial commentator has publicly bragged on film about how he used to engage in stock manipulation as a former hedge fund owner and how he enlisted the assistance of "financial analysts" in bringing down a company's stock price.
The practice of naked shorting unlawfully increases the float of a company's stock and is particularly deleterious to smaller companies having relatively smaller amounts of stock outstanding.
The practice should be made illegal for all stocks and severe penalties enacted for violations.