Naked Shorting

It sure is interesting that our SEC and our largest financial institutions are still under an "Emergency SEC Rule" against naked shorting. This is an illegal activity that has never been enforced though the average investor doesn't have access to this trade. DTC, the 19 Primary Dealers and many others have been engaged in a deceptive practice that is very profitable for them and their Hedge Fund clients. If Adam Smith were to see how we conduct ourselves on Wall Street, he would have flipped! The rich get richer and the poor get poorer.

Go back to July 9th of last year when the SEC did away with the "downtick rule" and think of the increased volatility since. Go to http://glickreport.blogs.foxbusiness.com/2008/07/29/the-sec-and-naked-shorting/ and listen to the CEO of Overstock.com at the bottom. It is understandable to see the declines of our banks given the nuclear waste they created but having two sets of rules in a supposed open market is absolute nonsense. Capitalism in America is not what most think it is. The destruction naked shorting has created is even more than the losses reported by our banks. This needs to be enforced for the whole market and rules need to be adhered to by all participants. A more detailed post is on the way but this has been on my mind for sometime.