Hurray For Naked Shorting!

After thinking more about the melt-down at Novastar, I realized the catastrophe had some obvious heroes. The shorts, and not just the "legal" shorts, but also the evil, illegal, conspiring naked shorts. According to "Bob O'Brien" and others, a conspiracy by naked shorts kept Novastar's stock price substantially lower than it should have been the last few years. That means those secretive "Sith Lords" (as OSTK CEO Patrick Byrne calls them) helped save Novastar's investors millions upon millions of dollars during the meltdown.

Think about it. One of the few events worse than having a $30 stock plummet to $8 is owning a $60 stock that plummets to $8. That lower purchase price is the difference between having 26% of your investment left, vs. only 13%. So NFI investors may have twice as much of their NFI invesment left in todays world, than they would in a world where illegitimate "bashers" didn't sniff out Novastars overstated financials and find any means possible to short it.

So repeat after me. Hip, hip hoorary for naked shorts and naked shorting!!!!