js: Here is the SEC's own comments on the NSS pk conspiracy nonsense:
The excerpt below is from:
SEC Report No. 450
March 18, 2009
Practices Related to Naked Short Selling Complaints and Referrals
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In recent months, a small but vocal cadre of advocates has emerged decrying the practice and suggesting that it has damaging market effects.... Others view the threat posed by “naked” short selling as wildly exaggerated, and point to instances in which allegations of abusive “naked” short selling were used to cover up other management malfeasance, like the dumping on the market of large blocks of unregistered shares. We have recently alleged such behavior in the widely-discussed CMKM Diamonds litigation. Other fraud defendants have also attempted to portray depressed stock prices as the work of clandestine short sellers.Despite its assertions regarding the potential danger of “naked” short selling and the growing interest in the subject, the Report can cite to no bona fide studies or empirical data regarding the practice’s market impact. The Division of Trading and Markets debunks the theory that NSS creates “counterfeit” or “phantom” shares.
. . .The Division of Enforcement is called upon to police the massive U.S. securities markets with decidedly limited resources and, in order to fulfill our mission of investor protection, we must intelligently leverage those resources.
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In the above excerpt, "we must intelligently leverage those resources" refers to the recommendation not to waste precious time re: the NSS complaints especially regarding non-reporting PK stocks.
Note: All above from the SEC report, but I added the highlighting to certain passages