friend

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 .

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 .

Financials Down 6.1% - Like the Days of the Tech Bust?

Once the financials on the rise , the short sellers pull it down sharply , we can see such on July 2 , 9 , and more obviously July 14 where the after hours trading for FNM / FRE went up 30% while the same went down immediately when the bell rang .

I am talking about all bank stocks be they classified as strong or weak .

Obviously , the short sellers have been so well fed on the expense of the banks' equity by depleting value to sending a panic to the public , that they became much stronger than the defenders working on normalizing the financial pricing .

The " good news " would no longer help to recoup the price .

Everyone seems to know that they should follow the big guy in shorting once seeing any rise eminent .

The profit is taken in the expense of the whole economy .

Fannie / Freddie ( FNM / FRE ) have been running their business successfully for years .

They are well experience and up to today's date after their stock pricing and thereby equity , being depleted by short sellers down to almost worthless , they can still stand up to state in confidence that they can do a good job on what they have been accomplishing .

There is only harm done to the public by undermining the two .

They are the best to handle the now financial crisis .

The treasury ought to set up a trust funds for the taxpayers and buy their shares in the open market in against the short sellers .

The taxpayers would get themselves a terrific investment , FNM / FRE at about or under $ 10 , vow !

The taxpayers would make a big chunk of money when their pricing go back up to over $20 at just 2 weeks ago , in June .

The two would not be diluted since no new stocks would be issued .

The short sellers would lose some money and they are fat enough to afford it .

The two would gain back their equity so that the passing of the mortgage rescue plan can be facilitated .

Once the rescue plan is in place , the housing market would make a turn to gradual stabilization .

The rest of the financials would gain back confidence from investors .

Should the short sellers carry on to cut down any rise whatsoever .

The respective bank should throw in all they have or even borrow to buy against the short sellers .

The public knowing that a rise would not foresee a huge fall , would then buy as well on a rise trend .

The government should encourage banks to buy back their own stock at this time of crisis .

Once the banks got back their equity the vicious cycle would naturally be unspiralled .

Only a concerted effort by the defenders would beat a concerted strength from the short sellers .

Hey , bankers , don't miss this golden opportunity by investing in your own bank ; well , unless you are one of the short sellers .

Make some money for yourself and help USA to recoup financially .

Would you ?