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  • No Quick Recovery for Stock Markets [View article]
    Manipulations in the stock market , feeding in expense of the US economy , are the fuel of the vicious cycle that spirals into an eventual financial destruction .

    Naked shorting , an unlawful manipulation , where short sellers may borrow astronomic amounts of stock shares for selling while the lenders have only samll quantities of those .

    The well capitalized short sellers may drive down any stock to any low point , for the fact that there are unlimited supply of stocks to borrow .

    Drastic drops would naturally attract panic sales at a loss .

    The average investors would lost heavily and some of my friends once well to do , consequently , fell behind in their mortgage payment .

    Foreclosures jumped more than double since October , 2007 when the financials started to fall .

    Should the financials be made to fall by naked shorting , while the rescue plan being legislated , the confidence of the average investors would be completely destroyed .

    The financials and thereby the economy of USA would then be routed to destruction .

    This is the crucial time to buy against the short sellers .

    SEC made " emergency measures " to curb naked shorting but nullified its effect by exempting market makers to the measures .

    Financials fell drastically while the Bush Administration stated that the rescue plan would be legislated .

    The drastic drops strongly support that naked shortings are still very active .

    Average investors invest in the future and thereby would not sell at the said announcement by the Administration .

    The US economy cannot turn around unless the naked shorting can be eliminated .

    SEC can simply require delivery of the borrowed stock shares within one or two days .

    The lenders have to have the stock shares to be delivered .

    Naked shorting would then be naturally be extinguished without any extra paper work or confusion .

    Why does SEC not using such simple but effective measure to curb naked shorting ? We don't know .

    Buy against short sellings until SEC put its acts togather .



    Jul 27 12:21 pm |Rating: 0 0
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