Seeking Alpha

friend » Comments » AZ

  • Mother of All Short Squeezes? [View article]
    Yes , why does the unlawful naked short selling being allowed openly by SEC ?

    Even at emergency , SEC offers policing to only 19 investment banks for 30 days .

    How about the regional banks where they have already been hurt by naked short sellings .

    The naked short sellers can short sell unlimited quantity of shares of any bank by not having to borrow the same .

    Such short sellers then have the " privilege " to command an unlimited supply of shares .

    Such short sellers are naturally invincible since they have been well fed financially in expense of the economy of USA .

    Yet , SEC would only police for 19 investment banks .

    Why does the lawmakers tolerate such notorious violation of the law ?

    Further , banks are often required to shore up their balance sheet forcing them to sell newly issued stocks at depleted pricing .

    An article indicated that the same short sellers who depleted the banks' pricing would buy the newly issued stocks for covering their position .

    Magic ! short selling " nothing " at a high price and buying back the tremendous quantity of new issues at a dirt cheap price .

    A small group of short sellers make huge profit on the misery of a very large number of innocent people .

    Is this vicious cycle of selling phantom stocks at high prices while covering the position with cheap new issues , really happening under the eyes of lawmakers ?

    Just in case , Banks should have a grace time to shore up their balance sheet until the naked short selling is limited .

    Jul 21 00:45 am |Rating: 0 0 |Link to Comment
More on AZ by friend
Comments by Ticker
friend's
Comments Stats
16 comments
Rating: 0 (0 - 0 )