Bearnake , Cox and Paulson, in Congressional testimony Tuesday, provided assurance to short sellers generally, that the SEC investigation of co-ordinated short selling would be limited to Freddie and Fannie shares. When this announcement crossed the news trailers at 1:15 PM, C was up 44 cents. Within 20 minutes it had dropped to minus seven cents. Other heavily shorted stocks followed suit.
While there was vague reference to the House Finance Committee looking into formulating legislation that would permit a wider range of short selling investigation, their announce of the 2 stock limitation gave a green light to those who will continue, unimpeded, to deplete your assets while enhancing theirs.
More than a trillion dollars has evaporated with a good part of the responsibility traceable to naked shorting. There is no possibility that without intervention, the heavily shorted stocks will ever regain a substantial amount of the losses. This loss of wealth will heavily impact federal tax revenues for years to come, leading to increased need for foreign capital, further debasement of the dollar, and a far lower level of corporate investment.
You must make your demand for a sweeping investigation into naked short selling known to the powers that be, or suffer further financial loss.
Shorting is good. This is a free society, not an Orwellian nightmare, unless you're a conspiracy loon.
However, yes, naked short selling is not right. I't out and out cheating. Legitimate shorting keeps the market on an even keel, otherwise all you'd have is pump and dump schemes up the wazoo. Except they would be pump, pump and pump some more, then dump on the suckers.