tomc368's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/169250/comments http://seekingalpha.com/article/85871-freddie-and-fannie-the-case-against-hybrids?source=feed#comment-210337 210337 Mon, 21 Jul 2008 04:53:36 -0400 http://seekingalpha.com/article/80423-which-solar-stocks-will-continue-to-shine?source=feed#comment-181044 181044 Sat, 07 Jun 2008 20:46:08 -0400 http://seekingalpha.com/article/71237-how-much-can-we-blame-the-uptick-rule?source=feed#comment-180822 180822
The very essence of short selling goes against all principals of any market. In an apple market, have you ever seen a grocer sell 100 apples to someone and he didn't have the apples to give? Maybe he can borrow the apples from someone else to sell? Well if he can, he damn well better deliver those apples upon sale. Maybe he can borrow the apples from someone else who does not even know that he is borrowing the apples from him! (aka stealing).

Shorting on downtick would be OK if you had to borrow the shares to do it. The problem is naked shorting on the downtick where you don’t have to borrow shares first. Guess if you have the financial backing of hedge funds it is OK. They can throw massive amounts of naked shorts on a stock, and cover shorts along the way. End of day, they have covered their short position and laugh all the way to the bank.

The theory of the short sale is acceptable. The problem is that the theory and fact are not the same. The locate and settlement processes do not work and are not controllable. The theory of short action is to offest long action. The problem is the current system allows shorts more time and leeway than longs so the process is unbalanced. It is not the theory of shorting that is the problem, it is the locate and settlement proccedures that are the problem. The shorts and longs are not equal as the theory would have us believe. Naked short selling is being done all of the time and it is unfettered. Hedge funds with loads of money can throw it at a stock and overwhelm the longs. They can affect their play and settle before it can ever be noticed a naked short sale took place. Until you can get fact and theory to be the same, short sales will be a problem to the stability of the market. I only wish more people would speak out on the issue. Since most people do not short, they are not aware of the problems or how they are being affected by them. ]]> Sat, 07 Jun 2008 09:19:41 -0400
The very essence of short selling goes against all principals of any market. In an apple market, have you ever seen a grocer sell 100 apples to someone and he didn't have the apples to give? Maybe he can borrow the apples from someone else to sell? Well if he can, he damn well better deliver those apples upon sale. Maybe he can borrow the apples from someone else who does not even know that he is borrowing the apples from him! (aka stealing).

Shorting on downtick would be OK if you had to borrow the shares to do it. The problem is naked shorting on the downtick where you don’t have to borrow shares first. Guess if you have the financial backing of hedge funds it is OK. They can throw massive amounts of naked shorts on a stock, and cover shorts along the way. End of day, they have covered their short position and laugh all the way to the bank.

The theory of the short sale is acceptable. The problem is that the theory and fact are not the same. The locate and settlement processes do not work and are not controllable. The theory of short action is to offest long action. The problem is the current system allows shorts more time and leeway than longs so the process is unbalanced. It is not the theory of shorting that is the problem, it is the locate and settlement proccedures that are the problem. The shorts and longs are not equal as the theory would have us believe. Naked short selling is being done all of the time and it is unfettered. Hedge funds with loads of money can throw it at a stock and overwhelm the longs. They can affect their play and settle before it can ever be noticed a naked short sale took place. Until you can get fact and theory to be the same, short sales will be a problem to the stability of the market. I only wish more people would speak out on the issue. Since most people do not short, they are not aware of the problems or how they are being affected by them. ]]> http://seekingalpha.com/article/70276-home-prices-fall-11-4-in-january-a-chance-to-hit-bottom?source=feed#comment-133320 133320 Sat, 29 Mar 2008 01:35:38 -0400 http://seekingalpha.com/article/70186-working-off-excess-housing-inventory?source=feed#comment-133317 133317 Sat, 29 Mar 2008 01:13:38 -0400 http://seekingalpha.com/article/67472-allis-chalmers-post-earnings-analysis?source=feed#comment-132766 132766 Thu, 27 Mar 2008 22:46:05 -0400