Fails to Deliver is a major problem but until the regulators act to move upon the problem, investors essentially are hung out to dry by those very people whose job it is to protect them. It is even worse on the OTCBB which is akin to the wild west and the quickest draw lives to fight another day. I was mainly an analyst and trader for a small boutique firm and never had contact with clients but I could see the nonsense going on and it sickens me to this day. The American markets have become a victim of Greed (capital letter intended) where the population at large seems to think that it is not a crime unless you are caught-the markets are just a reflection of society and the mores society at large seems to accept where the betterment of the few at the expense of the many is okay. Naked shorting according to the regulations currently is not illegal unless it is used to drive the share price down and at that point the authorities are supposed to step in . There are certain levels of naked shorting, acting much as the curbs do in the general market, that are supposed to trigger when fails to deliver occur on a regular basis. I could find them if I looked through my materials but that is neither here nor there. Paper trading is a problem and not just in equities but in the bond and commodities markets as well.
Unless the SEC begins to act in the interest of investors and not for headlines and how it may advance their own personal careers, the problems are here to stay. Of course there always will be those who are willing to risk imprisonment for riches no matter how many rules and regulations you have in place. Pump and dump schemes are just another way to allow the publics pockets to get picked and the requirements for listing on the OTCBB are far different than the NYSE, AMEX or NASDAQ. I read through many posts here right back to last fall trying to get a sense of what was happening here prior to posting and I saw two posts releated to going to the big board-either AMEX or NYSE which means, if you pardon the expression, in short someone is hyping this stock. At this time the worst thing that could happen to this stock is to have it listed on the big board because the share price would simply collapse based upon the speculation and lack of financial disclosure the company has to do at this time trading on the OTCBB. There was another Canadian oil sands company trading on the OTCBB and the big talk was it was going to AMEX and when it did, the share price collapsed. The speculation came to light, investors, particularly institutional investors, saw it for what it was and liquidated their holdings. Then too all we saw was wild forecasts for pricing based upon the amount of oil in the ground. This is likely to suffer the same fate.
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