Three Fixes For the Economy

I forgot to mention the problem of re-lending shares over and over again : Right now a share can be borrowed and lent out an unlimited amount of times. There is no limit. That's how we wind up with a legal short interest of over 100% of the outstanding shares - that's insane. Some securities have a legal and reported short interest of over 300%, not including the "fails to deliver" stuffed in people's accounts - which are not accounted for in the short interest figure at all. This unlimited short selling - legal and illegal - has to have some brakes put on it. The uptick rule alone will not do that. It would only slow the downward train but not stop it. We need limits on the short selling that can occur like in Australia and Singapore and eliminate the illegal "fails to deliver" and "fails to receive" altogether from the market place. In our letter to the SEC we put it this way - two years ago to the day: Quote: Some securities have a short interest in excess of 100% of authorized outstanding tradable securities. This can only mean that securities are being lent out multiple times, for multiple short sales. In Australia, the short interest in any security is limited to 10% of issued securities. NCANS believes that any short interest in the U.S. markets should be limited to 50% of issued securities. Otherwise, the basic equilibrium of supply and demand is destroyed, as is pricing integrity. And the return of borrowed securities is jeopardized, resulting in potentially massive volatility should a majority of lent shares be called back – again, diminishing investor protection and creating dangerous disequilibrium for the markets. NCANS recommends that once the daily short interest reaches the 50% threshold, all short sales in the security should be suspended until the number falls below the threshold.

THE ONLY FIX -- The bailout is flawed, the stated results are a political dream — our nightmare. . . The government purchasing these hard mortgage assets from lenders at risk is a doomed tactic. How is the government going to manage these hard assets spread all over the country? Are they going to be paying the property taxes on these assets? - a substantial added cost, and who will determine the tax value? What agency will be responsible for the repair and maintenance of these assets? This plan will only further deteriorate these assets and create black whole for value, let alone the corruption that will seep into this plan. Offer American’s a 3% 30 year fixed loan if they buy bank owned property over the next 24 months and we will take care of this problem jolly quick. After all, we, must end up with these homes for the plan to work, right !!!