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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 .

The SEC Panics

The short sellers cut down every rise eminent in the financials .

Most obvious is what had happened in the morning of July 14 .

FNM / FRE traded over $ 11 before the bell in response to the Sunday's backing announcement .

After the bell , the two were short sell down to about $ 7 in about a 10 minutes time .

Not just the said two , all bank stock were short sell down drastically .

The short sellers are well fed in the expense of the banks' equity .

The concerted power released in such a short time can only be done by some conspired group of short sellers .

I do think that the Administration is doing the right thing in curbing short sellings , at least on a temporary basis .

USA is facing a financial war and not just a simply market of supply and demand .

Short sellers can take a vacation leave to spend their money easy earn in expense of the economy .

Give the banks a chance to survive , please .

Let the investors get back to their old habits of viewing that a significant rise would mean a sign of recovery from the rock bottom price rather than being a signal to a further major drop .