I agree with you about Federal Reserve to be sure, and when a crash comes it will be massive.
On shorting penny stocks the persistence of this urban legend is astonishing - no one I know in the industry takes this seriously, but they all say it makes for good conversation with retail investors. For stocks above a few dollars I dont know, but certainly hard to see why generating liquidity is a negative in a free market. Sure there are some bad apples out there, a bigger issue is the costs and constraints imposed through regulaton that is driving legitamate small companies out of business. Just my opinion of course !
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