Petition to Disempower the Short Sellers who profit from the decline of American Industry.

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