Poet,
This is not just about so-called "penny stocks". Our research into this issue involves stocks trading at greater than $5 on both the NYSE and NASDAQ across several industries. Once targeted by shorts it is almost impossible for a company to recover, the short advantage is too large. Granted, the problem is exacerbated in the OTCBB arena, but were the problem restricted to that arena alone we would not be looking at such dire straits ahead. It appears that this time though they feel powerful enough to take on an entire economy. Remember they have been building their war chest, feeding off of a %70 decline in the NASDAQ over the last eighteen months. Many individual companies are down 95% or more. Now they target the DJIA and S&P500. The math is on their side. they need only 20% to initiate a position and they earn interest on the proceeds from the sale. They have hundreds of Billions of dollars at their disposal, they can short several trillion dollars now and as the markets go lower they can short more.
What we need is a temporary ban on all short selling until new regulations can be put into effect that make the system more transparent and level the field. Once the proper checks and balances are in place the "new" version of short selling could resume. The new rules would likely force many existing short positions to cover immediately and some would be at a loss. We expect the shorts to oppose this vehemently.
I do hope this clarifies our petition for you.
The Bird of Prey
The End Days are upon us.
News 
Market Data 
Discover 
