What we all need to understand when we buy shares is that we really can't know if they were shares previously shorted. That's how shorting multiplies shares in a completely unknown way. Shares borrowed from an account are deposited in your account, let's say it's 10K shares. Now those shares are borrowed and deposited into someone else's account, that 10K's become 30K and there is no end to how many times this can happen.
Each person owns the shares in their account, but the shorts have tremendously added to the total shares people own beyond what's outstanding from the company. Margin calls force those who've shorted to buy back the borrowed shares.
The MM's are the one agency who won't receive a margin call because of going short, but they're supposed to balance their accounts and not maintain a perpetually short position. The SEC doesn't police this to any degree, so the MM's can carry many shares short for substantial time and face few consequences. It will result in losses on their books, but they'll look to balance it in future buys and sells.
We know that 7 of the biggest MM's have been working against us, our suit against them should settle some day. There is little doubt that their goal was to bankrupt the company, that eliminates the naked position and they profit from every share they sold which became worthless. If they fail in our case, great, but you know that they're succeeding in others, so the practice continues. I don't know that the world couldn't operate without MM's, I suspect that computers controlling all buys and sells could replace them and never create massive short positions. An SEC that actually enforce the laws would probably be a good step in the right direction.
Gary
Bullish
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