To: dvdw© who wrote (3664 ) 8/2/2008 1:12:21 PM From: Hawkmoon Respond to of 5034 This is the fact. I've uncovered this over 5 years of funding my own research.....there is no other issue than subversion of the underlying capital stocks by naked shorts. Let's go back to the Tulip bubble.. There was a supply and demand for tulip bulbs.. We all know the history of that bubble and we can recognize how crazy it actually was. And, eventually, that bubble burst.en.wikipedia.org Presumably, there was a set supply of Tulip bulbs, determined by there ability to be grown according to the expectations of the consumers willingness to pay for their particular qualities. However, the solution, using today's rules, would be for them to sell tulips that don't exist, and then fail to deliver them to the consumer. They would borrow Tulip bulbs from a warehouse/broker manager, presumably tasked with facilitating transactions and storage on behalf of their owners and without the owners consent or knowledge, sell them "by proxy" into the markets, with a promise to return those bulbs at some point in the future. But when those bulbs are borrowed (on paper) over and over again by different parties and sold, now we're talking about not having any real ideal of what the true supply/demand price discovery process should be. In the old days of stock trading, people actually transferred shares in the auction markets along Wall street. You sold something and the property (shares) were transferred to the new owner. But what's occurred is that the velocity of transactions has outpaced the ability to properly account for actual property ownership, leaving us with a serious lack of crebility with regard to final accounting. This is why I believe the only solution is that every share is accounted for when a transaction is consumated, with an unique electronic ID number assigned to those shares in accordance with the company's publicly stated number of outstanding shares. Hawk