Naked short selling in US markets is grotesque and I have no confidence in stocks because of it. Seemingly concrete evidence of this illegal market behavior is apparent in cases such as Overstock Inc vs Goldman Sachs & Co, but no regulators appear to be serious about the problem. Market Makers insist that the mechanisms that allow this activity are necessary because they “provide liquidity” but the finite liquidity of stocks is a key feature of the stock market that is being undermined to consumer detriment. Nothing short of strong government intervention complete with legal consequences for the bad actors involved will restore my faith in the markets. The situation surrounding modern “meme” stocks appears to be nothing short of unbridled corruption.
Jack Ferguson Comment On Regulatory Notice 21-19
Naked short selling in US markets is grotesque and I have no confidence in stocks because of it. Seemingly concrete evidence of this illegal market behavior is apparent in cases such as Overstock Inc vs Goldman Sachs & Co, but no regulators appear to be serious about the problem. Market Makers insist that the mechanisms that allow this activity are necessary because they “provide liquidity” but the finite liquidity of stocks is a key feature of the stock market that is being undermined to consumer detriment. Nothing short of strong government intervention complete with legal consequences for the bad actors involved will restore my faith in the markets. The situation surrounding modern “meme” stocks appears to be nothing short of unbridled corruption.