Thanks for that medwar,Yes he just sent me a quick note telling...

Thanks for that medwar,

Yes he just sent me a quick note telling me that, and I was very happy that something was starting to put a stop to the rot which has gone on uncontrolled for a long time, and you posted the whole lot of the story which in turn makes it very interesting reading.

And, as you posted:

"(Prior to Wednesday's announcement, industry groups like the American Bankers Association feared that the yet-to-be-announced rules may not go far enough to protect the stock price of banks.

Other groups, like the Managed Funds Association and the Coalition of Private Investment Companies, which represent hedge funds and other asset managers, have opposed any permanent changes, fearing that a rule would not only limit legitimate short selling but also give an inaccurate representation of the real price of a stock.

I think this might be what your friend was talking about. I don't know enough about "naked" shorts to comment, however my gut feel is that it is a good thing!)"


Medwar, The middle part of your post is what makes it very interesting. The one about the hedge funds complaining that if stopped it give an inaccurate representation of the real price of a stock.
That, IMHO, is the biggest lot of hog wash comment I have ever read because, what they have been doing all along and undetected, is going to catch up with them and force them to cover, if they are uncovered.

IMHO, what naked short selling means, is that the shares, (against the rules of trading which requires an entity to have borrowed the stock before it is sold into the market), are sold into the market without borrowing any of them in the first place. Hence why they are called naked shorting. There are some hedge funds out there whom don't borrow any of the stock at all and continuously dump shares into the market causing the sp to extremely low levels, and then wait until they are happy before they decide to cover, MAKING HUGE PROFITS. There have been times that they (the hedge funds), have actually destroyed fledgling companies, by starving them to death with the inability to raise funds, due to the low level of their sp. I clearly remember owning shares in a company in the USA that only had about 30 mill shares listed on the stock market and it was short sold by in excess of 50 mill shares. The sp went from 15 US$ to a few penny in a few days. To my belief, and please don't quote me on it, these shares are still uncovered and protected by the so called grandfather's close that the SEC at the time introduced. It would be very interesting to see if they are now going to be made to cover.

These funds have the money to make or brake a company, while they are profiteering from the poor unsuspecting shareholder.

I think that this was what our CEO was commenting about it, when he stated that some hedge funds were shorting FMG to hell without having any borrowed stock to do so. VERY VERY INTERESTING!!! Especially, if such a thing went on, providing our Government will start doing the same.

Buddy