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No Quick Recovery for Stock Markets

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 .

U.S. Markets: Is it Time to Throw Caution to the Wind?

Yes , the investors are unconvinced .

The Administration , the Treasury and the Senates are making big plans in response to the rising foreclosures and depleting financial stocks .

It is notorious that " naked " short sellings intensify to a huge extent on the depletion of financial stocks especially that of the regaional banks .

SEC has revised the rules in policing " unlawful manipulation through naked short selling that threatens the stability of financial institutions " .

Such rules become effective tommorow , July 21 , 2008 and yet these rules don't protect regional banks .

Regional banks have very little exposure to the subprime and yet their equity were in general depleted about 60% in the last three months .

Such banks have originated a lot of mortgages for Americans when they establish their homes .

For instance , Regional Financial (RF) is a profitable local banking network , which has been dedicated in Charity and community works , in addition running their banking business .

The stock pricing for RF was depleted from $23 in April to $ 7 in July . The stock price came back some last week and yet it is at a 56% discount from that of April , 2008 .

One invested in such banks on a long term basis and not for a quick profit , would find oneself losing so much that one could not even afford his mortgage payments .

No wonder , foreclosures are on the rise .

SEC would help to stablize the financials in a meaningful way by protecting all banks from the " unlawful manipulation " .

I trust that SEC would extend this protection rule to all banks at the soonest .

Otherwise , it would be a disgrace and a snap in face of USA .