February 4, 2008
Nice of your staff to publicly acknowledge a meeting with the lobbying group of the industry your agency is SUPPOSED to be regulating.
I am sure you will never reveal what you were told, or what inducements were made to cause you to continue to act in ways that ultimately destroy all investor confidence in US financial markets.
It is a sacred belief of market manipulators that they should be allowed to instantly sell securities they do not possess in order to maximize their profit from inside or just released information that might be construed as unfavorable. The SEC has enacted a number of policies to facilitate this process, such as eliminating the restriction on selling short into a declining market, eliminating any pretense that securities must be borrowed before they can be sold, and allowing option market makers to sell but not deliver an unlimited amount of securities as a hedge against any put options a short seller wishes to purchase. Acting together, with the full support of the SEC, a short seller and an option market maker can destroy the market price of any security they choose to attack.
Any student of economics knows that the market price of any good with absolutely unlimited supply and zero delivery cost will be zero, no matter how essential that good is to survival, such as air.
Can you explain to the American investing public why you have chosen to allow market insiders to create an unlimited supply of any securities they choose, to maximize their own profits, while creating unlimited losses to public investors?
Can you explain why you meet secretly with representatives of market manipulators, while ignoring your mandate to maintain confidence in public markets?