July 29, 2008
I believe the idea of borrowing stocks, in the form of naked short sales, should be eliminated across the board. It does not add any value to the average person's stock holdings. It only allows for the manipulation of the underlying asset by exacerbating trading volumes and price swings, usually in a negative manner, which only benefits the brokerages and the people in the know, who are doing the manipulating. I believe that all stocks should be protected from naked short sales because the little guy is getting squeezed by these sophisticated crooks. Also, it is not fair to allow more protection, with very little risk to the short sellers, than that which is afforded the value/long investor. It all comes down to the fees generated by the Wallstreet firms, they control the game and would like nothing more than to trick, cajole and deceive joesixpack out of the wealth they have earned. It is time to act as a society to bring fairness back into the mainstream. You can't let the foxes guard the henhouse. Thanks, JLH (I raise chickens for a hobby)