Naked Shorting-Hedge Fund & Market Maker manipulation? Message Board

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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?

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From: basserdan	4/8/2009 11:18:45 AM
	3 Recommendations Read Replies (2) of 5034

Dr. Jim DeCosta Says: April 7th, 2009 at 4:58 pm Over the years I’ve had the opportunity to write extensively on the psychology of abusive naked short selling and I noticed a glimpse of the standard justification for this (mis)behavior in this interview. The short seller mentioned something to the effect that after the manipulators had manipulated the share price upwards whether or not they are willing to lend shares to naked short sellers shouldn’t be an issue. In other words the abusive naked short seller is acting as a “securities cop” attempting to thwart “pump and dumps”. In my opinion this helps them to sleep at night. Some people might take issue at committing a blatant fraud to address a perceived fraud, however. The natural question that arises is how did the abusive naked short seller gain his expertise in every business sector under the sun in order to make his diagnosis that the share price was too high. Another question that arises is who did the deputizing? The answer comes back that it is typically the DTCC, FINRA and the tacit approval provided by the SEC’s Enforcement Division that has seen a gazillion investor complaints without rendering one administrative proceeding. Meanwhile FINRA has made a gazillion recommendations to the SEC Enforcement Division yet not one involving abusive naked short selling. Another question that might arise is how can these “investor advocates” steal money from investors without batting an eye. The mindset that arises here is that the investors that they are ripping off represent “collateral damage” that is unfortunate but must occur in order for them to save the investment funds of later investors who can’t invest in already bankrupted U.S. corporations. But don’t they realize that knocking the price per share down to near zero only increases the line of opportunistic investors and doesn’t shorten it? What it boils down to is that U.S. corporations, like sandcastles, are much easier to destroy then to build due primarily to the phraseology used in UCC Article-8 regarding “securities entitlements” and their holders having the ability “to exercise all of the rights and property interest that comprise that security that they are “entitled” to. Today was a very good day for the market reform advocates! The above is taken from the 'comments section' of the Deep Capture entry linked below. deepcapture.com

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