CMKM Diamonds Inc (fka CMKX)

[jimmym4]

Post from It's the Economy:
Naked Short Selling - Wall Street may indeed be to blame for the financial crisis
By John in Strafford PA - Dec 2nd, 2008 at 8:28 am EST
Also listed in: Caltech supports Barack Obama | Pennsylvania Action Team | The Main Line for Obama!

Comments | Mail to a Friend | Report Objectionable Content
--------------------------------------------------------------------------------
Tags: cds, credit default swaps, economy, financial crisis, MBS, Mortgage Backed Securities
Trading practices on Wall Street may be responsible for the credit crisis, as explained in a cogent article by Susanne Trimbeth http://www.newgeography.com/content/00436-blame-wall-streets-phantom-bonds-credit-crisis .

Federal regulators have been looking the other way concerning the practice of "naked short selling" for years even though investors have lost vast amounts of money and companies snuffed out of existence by unscrulous traders. The voices against naked short selling have been characterized as kooks tilting at windmills. But gradually the truth is emerging that naked short selling is rampant.

It seems the naked short sellers' appetite for the entire market capitalization of small companies has grown to the point that they were attacking commercial banks (starting last summer) and according to Trimbeth, now they are feeding on U.S. Treasuries.

That's right - naked short sellers are now feeding off the "market cap" of the USA.

If you get through this rather technical article, you will find it is in the naked short seller's interests to see homeowners default on their mortgages.

Perhaps the top priority of the new Obama Economic Team should be to vigorously put an end to naked short selling, as this is threatening the stability of US Treasury Bonds - which are the backbone of the USD. Brokers found guilty bust be given more than the customary slap on the wrist - paying back 5% of their ill-gotten gains and saying they're sorry - and treated for what they are: counterfeiters who are undermining the security of the country.

http://my.barackobama.com/page/community/post/economy/gGxv9P