August 6, 2008
I think the SEC should apply the naked short sale restriction currently being applied only to the 19 financial services companies to the broad market generally and do so immediately. Short specialists should not have the opportunity to "print" shares and should be constrained by the actual supply of shares outstanding. While naked shorting is not to blame for the overall market condition it is a loop hole that hedge finds can easily exploit in a bet against american companies at a time we cannot afford this and at a time that our companies need to be able to raise equity at prices that will not dilute their stock in a way that damages the long term value and viability of the companies. As a "joe blow" investor I think we need to take this edge away from the professional investors and quit enabling them to bet so heavily against our companies.