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The Facts Behind the Coming Congressional Mortgage Bailout Bill

Foreclosures have been rising at great speed since October , 2007 .

The timing is matching exactly the slumps at financial stock market .

These home owners who lost their homes might be the same victims who have suffered grave loss , over the slumps .

Those who stored their savings in bank stocks which had been stable for about 5 years , would lost most severely .

They are simple , hard working people but victimized by the naked shorters .

The immense power of naked short selling drove the bank stock pricings lower than lowest .

SEC allowed such unlawful manipulation , one article indicated that some published records have shown that some short sold shares were not delivered for over 200 days .

SEC announced emergency measures to police naked shorting on last Wednesday and somehow two days later , nullify the effect of their own measures by exempting the market makers .

The requirement of delivering the shares short sold by the next day seems reasonable under the computerized system .

Naked shortings in the now distressed economy intensify the vicious cycle that spirals towards economic destruction .

The government has a duty to serve the general public .

The bailout or whatever one names it , is a measure to reverse the cycle towards a better economy .

Why not ? I know , you short sellers , don't agree .

Mother of All Short Squeezes?

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 .

Financials: Don't Believe the Rumors

The short sellers are raging an attack at the financials to an extent of damage , worse than the 911 terrorist attack .

The only difference is that the short sellers are much stronger than the defenders .

Yes , it is a financial war and not just a market of supply and demand .

All bank stocks are commonly seen sliding over 5% in price in just about 2 hours time , regardless the financial strength of each individual bank .

Such strong concerted power can only be released by a conspired group of short sellers .

Conspiracy is criminal .

Panic catch on by the general public and the price went down further .

The defenders of price become weaker due to their loss of equity .

Lowering price or equity , credit crunch , weakening economy all come into a vicious cycle and domino effect .

Such huge depletion of pricing has nothing to do with the value of the bank stocks .

Some banks are paying dividend at a rate of more than 20% to the now depleted price .

Yes , they would cut dividend in the next quarter while their equity is cut tremendously by the invincible short sellers .

Strong defenders are needed to buy against the short sellers so that the badly depleted price can be pull back . The confidence of investors would be accordingly restored .

The Fannie / Freddie stocks are immensely important in strategy .

Should the Fannie / Freddie stock pricing be stablized , the pricing of the rest of the financials are less easy to be pull down further .

The equity values of the two are of immense importance to the passing of the mortgage rescue plan .

The mortgage rescue plan would then help to stablize the housing market .

I know for the fact that some government did encounter a similar financial war .

The same government stepped in to buy against the short sellers by setting up a trust funds using the taxpayers' money .

The same government won and made money for the trust funds as a result that the pricing grow back to normal .

The shortseller lost a huge chunk of money and disappeared .

All those bad news the shortsellers used disappeared as well .

Can the good guys win the war ?