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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: rrufff who wrote (413)	10/30/2005 11:02:22 AM
From: The Dodgy Ticker	Read Replies (1) \| Respond to of 5034

Thanks, rrufff, very interesting. Do you know if Karl Thiel followed up with more discussion of naked shorting as he said he'd do at the end of the March 30 article? Best regards, Bob

To: rrufff who wrote (413)	10/30/2005 11:04:33 AM
From: tyc:>	Read Replies (1) \| Respond to of 5034

I quote from your last posting of Motley Fool: I must admit that it reflects my understanding of the situation; "Lawsuits have claimed that the DTCC loans out shares it never collects from participants. These, in turn, presumably show up as new "fails to settle" transactions, but from the point of view of the market, they appear to be new shares floating around -- in electronic form, that is, without stock certificates to back them up. These can then be relisted, the theory goes, as available for borrowing, and the process repeats itself, allowing the folks manipulating the system to essentially manufacture any number of phantom shares". Surely, however, such transactions do not show up as new "fails to deliver" because the were settled using borrowed shares. They were NOT naked shorts but simply the legal shorting of borrowed share. However, the result would be the same; "a new share is floating around in electronic form.... these can then be .... available for borrowing and the process repeats itself". I have never seen a satisfactory rebuttal of my contention that the "counterfeit share" problem is caused by ALL shorting, not just naked shorting. Do any of you people understand why I am incorrect ? Could you tell me ?