No. of Recommendations: 7
Shorts - naked or not - have to buy back their shares sooner or later. The best defense against naked shorting is to run a solid company with real earnings so the naked short sellers have to buy back your stock at a higher price than they sold it.

Although I think naked shorting should remain illegal, and I'm glad to see a crackdown, I really don't understand all the conspiracy theories and hyperventilation. Short sellers, naked or not, make money when they are right and lose money when they are wrong. Those who profit from spreading false rumors should be taken out and shot, whether the rumors are positive or negative, whether the positions are naked or clothed.

It's always seemed to me that the people who reserve their ire for naked short sellers, rather than observing the whole panoply of malfeasance on Wall Street (most of it long biased), generally have their own agenda of self interest.

Martin
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