One Step Ahead

[Ignutz]

Over the past few months, many articulate Americans have joined the battle against naked short selling, the stock market scandal known as Stockgate. It will not be one voice that wins this fight, or rights this wrong, it will be the collective voices of the thousands who are truly interested in doing the right thing for all of America. Thank you for adding your voice to the thousands.

We have just added a new commentary to our website. This is an excerpt from that article:

The Old Shell Game
By Bob O'Brien

"Where I come from, I would think that if the regulators have a pretty basic charter ­ keep the markets fair ­ and if they clearly aren¹t doing so, well, that there would be a lynching at some point. Apparently that¹s not the case with the SEC. They have allowed flagrant abuse of the system, as evidenced in my personal favorite case of the moment, the Compudyne matter, where a New York hedge fund sold over a third of the float of that company short in 975 separate transactions, EVERY ONE A FAIL TO DELIVER, and yet not one was flagged or stopped or caught by the system. Or another fun one, from Professor Leslie Boni¹s paper, wherein she reviewed the trading of one market maker, where over 68,000 failed trades were put through for this one group, and a whopping total of 86 were bought in as the rules mandate. The rest were allowed to fail. And nobody did anything.

Now, I don¹t know about you, but if I was allowed to break the rules in any business for profit 68,000 times, and only got penalized 86 times, I¹d be thinking that I had a pretty good gig going."

To read the rest of that article, go to:
http://www.faulkingtruth.com/Articles/Investing101/1020.html

There is also an entertaining Q&A session on the DTCC website about the naked shorting issue linked at the bottom of the article. It is rife with misdirection and doublespeak, but at least they are squirming in their seats enough that they feel compelled to publicly address the issue, and they did once again acknowledge the existence of naked short selling. Hey, it's a start.

To add your name to our "StockGate Activist" list, email us at
[e-mail]

Mark Faulk
[e-mail]
www.FaulkingTruth.com