So why is uncovered shorts still being allowed? I am not talking about normal shorting of stocks

[still_one]

but uncovered shorts, which means the shorting of a position, without the underlying security

Congress hasn't said a word, the SEC is quite, and of course the guardian of us all, the MSM, couldn't care less

[jpak]

1. Because Bush is still president

ya think?

[still_one]

3. no, it isn't even being brought up by anyone in congress /nt

[HCE SuiGeneris]

2. The money mongers are still utilizing its destructive capabilities.

They're not done yet with their pillaging.

[still_one]

5. Absolutely. It is what accelerated the demise of bear stearns and lehman, and will

lead the way for citi

It isn't that those financials didn't deserve it, it is that it is being manipulated in the most devious manner, and ironically, it was those very financials, including goldman, which took advantage of that

payback is really a bitch, but no one significant will go to jail for this

[HCE SuiGeneris]

16. Heavens no! No jail time. Maybe have to forgo a day on the yacht

to attend a hearing or two though. What an inconvenience to them... *sigh*

[RB TexLa]

4. Why wouldn't it be allowed?

[still_one]

7. Can you short a stock without borrowing the underlying security?

how can you short something, that doesn't have an underlying security behind that short position?

It is a fraud

It results in shorting shares that don't even exist

[RB TexLa]

8. It's not fraud and the SEC has never considered it fraud.

[still_one]

11. This is a relatively new phenomena. You can't short a position without borrowing the stock from

someone

[RB TexLa]

12. Yes you can. And people do. What do you care if they have borrowed the security or not?

all it does is add more risk to their position.

[still_one]

14. I write naked puts and calls, but I can't short any stocks unless they can come up with the shares

of the underlying security

Maybe you have a higher trading privilege than I do

[jmowreader]

15. Naked calls? You have more guts than I do

[still_one]

17. When I do write uncovered calls, I watch it very carefully, and close the

position off if it goes the wrong direction

I do NOT hold it until expiration if it trends the wrong way

[still_one]

13. When the number of uncovered short sales in a stock EXCEEDS its public float

or even the total number of shares outstanding, that is manipulation

[HowHasItComeToThis]

6. UP-TICK RULE MUST COME BACK

SHORTS ARE DESTROYING AMERICA

[still_one]

9. It is the uncovered shorts that are destroying America, and you are correct about the uptick rule

[Warpy]

10. Because it's still profitable

Other countries have moved to eliminate the practice and it should be eliminated here, too.