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

To: Hawkmoon who wrote (3479)	6/18/2008 3:22:41 PM
From: The Ox	Respond to of 5034

Tough questions, Hawk! I would think that if the SEC was serious about fighting issues like this, that they could take a stealth approach with the largest MMs and brokerages. I agree that the size of the problem looks too big for a line in the sand to be drawn on all accounts and equities at the same time. Since the brokerages who are in the middle of this mess appear to make big money from these illegal activities, it will require the SEC to force the change. Since the SEC doesn't seem to care and they continue to defer regulations and enforcement, it doesn't look like anything will happen until a new President comes into office and changes the heads of the CFTC and SEC. Also, a mandate from the President to clean this up will be required. I think there are plenty of ways to clean up this mess without a major market disruption. However, there may be a good number of stocks that will rise once the naked shorts are forced to cover. At this point in time, I'd say its too early to bet on enforcement coming soon from the SEC. I truly wish I was wrong on this but I see nothing to coming out of the SEC to change my view. Looking back at the SLV article I posted, it would require Barclays to step up and demand that the market not allow shorting of the ETF. One has to believe that they've been aware of this "potential conflict" from the start and simply(or intentionally) chose not to require this. If Barclays does nothing, there's not much anyone else can do except consider staying away from this ETF. jmo TO