From an Informed and Intelligent Observer:
Dear Mr. Weisshole:
I guess footnote 24 of this landmark study went over your head. Here’s what the authors had to say; more on the footnote in a minute.
It is important to note that the study’s authors Edwards and Hanley are both economists employed by the SEC. The premise of their paper and its entire reason for being is to convince us all that short selling (naked or otherwise) has no relationship to failures to deliver in an IPO. The authors further stretch their opinion in the paper’s final sentence to more broadly point out that the “disconnect” between short selling and fails to deliver extends “outside the context of an IPO”. You seem to revel in their opinion when you use the words debunk, devastating, and hysteria in the opening sentence of your rambling blog.
In footnote 24 Edwards and Hanley offer their theory; the only reasonable explanation of where all of those fails to deliver could come from since its not short sales, alas “brokers marking short trades as long,” but then they have never seen any evidence of such conduct. After all that would be breaking the law (17 CFR 242.200 and 242.203) and we all know that no broker would do that! If they did it would render this landmark study invalid, its authors without credibility, the SEC exposed, and your journalistic integrity once again impugned.
Eagletech v. Citigroup; I know you read it, you wrote about it a few days ago. Remember! What was it that you said? Dogpile stock? Mr. Weisshole, did you read the part about the 4.1 million more shares sold than bought by 81 brokers (bona fide market makers), NONE MARKED SHORT! Do you remember where all of those trading records came from? Oh My; the SEC! I guess Ms. Edwards and Ms. Hanley missed that too! Wouldn’t that make their study a “Dogpile Study” your words not mine? How about your book? Wouldn’t that be a “Dogpile Book?”
Mr. Weisshole, a little advice, brush up on your used cars skills; your days as a respected journalist were over quite some time ago!
With Warmest Personal Regards, I remain,
Sincerely,
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PS: Edwards and Hanley also missed the Violation of 10(b)5 the sale of unregistered securities, as well as 18 USC 514 the counterfeiting of corporate securities a class “B” felony, punishable by up to 25 years in Federal Prison.