Petition to Disempower the Short Sellers who profit from the
decline of American Industry.
The Short sale siphons money out of the American
Economy. It serves as a profit center
whereby inside information or rather market maker intent controls the stock
price. The stock price needs to be more
free floating than that! Financial
companies proceeds from short sales against the American Investor as Trading
Profits and it makes a substantial part of their profits. It siphons the American Economy of money,
increases the national debt and creates wealth for those who do not truly
deserve it. It allows for passive
management of Brokerage employees with resulting harassment and hazing as part
of the daily 9 to 5 day. Get rid of the
ones who know it is crooked and have being mean and doing so.
We do not sell someone something one day while at the same
time betting against that sale to them.
It is like selling someone something that you know you are going to
break, because you are going to break it, and when they come to get their money
back you give them what it is currently worth while you keep the difference
between what it is currently worth and what you sold it to them for as trading
profit. And then the next day or series
of day you rapidly increase the share price and sell the thing you broke from
the first investor to the next investor as being brand new- you didn’t do any
repair work at all did you? Accept for Bamboozling!
It is anti-American and has no place in the United States or
world financial markets.
Instead of volume on good news translating into more a price
increase commensurate to bring it to its efficient market level it translates
into more shares short.
Also there needs to be more accurate and specific
identification of actual purchases of stock by mutual fund type entities; whereby
an investor in such an entity can actually take delivery of such individual
shares if desired. I think a lot of
investors are subject to small portfolio fraud and churning whereby such
entities never put forth any of the customers money to buy such investments or
had market knowledge that translated into them knowing the portfolios would go
down and hence part of the fraud was a kickback to the entity. Such that it could be booked separately and
unlinked to investor’s money.
The market makers have made the argument in their defense of
keeping short sales in place that they do not make money selling short against
their own investors. Well if that is
true then they will have absolutely no problem with my remedy. If we regulate this there would be a lot less
financial industry profits. In effect
the industry would be streamlined with a large magnitude of cost cutting. But that industry does not exist to make
money from the Investors Principal. It
exists to serve the function of Americans owning a piece of American industries
and believing in them! The short sale
defies that belief.
Either the short sale is a major part of the investment
business or it isn’t.
1.
If it is, it shouldn’t be.
2.
If it isn’t, then you should not have any
problem with it heading into the sunset.
Do you see how there is no room for argument?
And I know what their argument will be, if we eliminate the
short sale rule markets will become more volatile and prices could swing down multipoints
in a day. It already happens doesn’t
it? And if it happens under this new
remedy the American Investor will not be harmed. And if the declines can be traced to
management or industry fraud then those people should not be immune with
limited liability. Men don’t really like
limited liability because it is really an insurance policy to compensate for
one’s own weak, crooked or fraudulent mind concerning business actions. If everyone can’t have it then no one should,
right? I mean don’t you think an
individual small business person is made to be more accountable than that in
order to stay in business?
Remedy:
All money ever made on the downside really belongs to the honest
American Investor who believed in America.
The Financial people would say they lost money because they were not
educated enough to make smart financial decisions. It just isn’t true! Why because the short sale allows for them to
profit when the stock price declines! So
what you have is inherent motive and opportunity! Motive in that you can make money by not
procuring the stock you are selling to them as a stock broker. It defies the meaning of transfer in the term
stock brokerage! Brokerage meaning that
you are actually going to procure and transfer property!
The remedy being that any person or entity whatsoever that
profits from a short sale is to be required to return 90% of the profit from
that short sale to the stock investors in that Cusip! On a prorata basis of their yearly losses in
it. This takes the elbows of the
financial industry! What do they go on
to do, we can make sure that they have a warm roof over their heads and plenty
of healthy food to eat. Common stocks
can be identified by specific identification based on CUSIP. And a software program could readily be made
to take into account the simple variables of the plan.
Sure you can make money by betting against me but 90% of
that money is coming back to me in the form of a rebate based on that cusip. An exempt rebate? So do you really want to do that?
Americans would have to put up with a lot less fatuous rich
snobs and funny money driving America into the ground.
Epilogue:
With regard to common stocks with a great percent of shares
sold short.
Does a stock ever beat the short interest this
great?
Does a stock ever beat a short
interest this great? And if a stock price can never beat a great short interest
then should short interest be allowed? If it is a defacto insider scheme to
defraud the American Investor then it is a relic of the Dutch East Indies
Corporation- really mercenary pirates hired by some evil king or queen? It
needs to see the sunset.
In other words if the act of "piling on" is all
that is needed to effectively prevent a stock price from going up; then what
place does "piling on" have in a Democracy with the Constitution of
the United States? Some things need to be revisited; in regard to modern
understandings; modern understandings of the health and general welfare of
everyone of us human beings living on the planet earth? The question being what
good does it do us to have wealth and power concentrated with those who have
"pile on" mentality? It just piles up a future liability until the
"pile on's" need to be summarily defeated?
In other words, "Get off of my stock or you are
asking for it!"
Copyright 2013 Thomas Paul Murphy
Originally published on 07 31 2013 at: www.themilwaukeeandwisconsinnews.blogspot.com