Here is a good article to read:
http://www.latimes.com/business/la-fi-0804-kn...4689.story
Knight Capital Group is one of the Market Makers who are known for short selling Penny Stocks as much as possible and in many times will drive the stock to the point it is worth nothing...
The rumor mill suggests that Ms. Shell is one of the people the hired by Knight to help bash certain stocks to help them short the stock to no worth...
Yesterday, I was on KNGs board reading up on the opinions of investors and she was getting real defensive towards anyone who was boasting about Knights f*ck up this past week.
Because of what happened, the US Securities and Exchange Commission is starting to recognize how investor confidence in trading and investing is hurting because of Market Makers like Knight and feel that more regulations need to be put in place to help prevent things like this from happening.
Knights computer system glitched caused them to loose $440 million dollars last week which is about 75 mil more then they had on their balance sheet. Like the quote said in my original post, the glitch was causing their system to buy certain stocks high and sell low at an extremely fast pace. Faster then any person could process.
From my point of view it looks like knight's computer system was setup with short selling as a priority. However, something went wrong and the system work to well and short their sorry asses to the brink of no return...
More people who have the power to make changes are starting to be more vocal about this and are starting to recognize that some of these MMs, especially Knight, and their short selling games and manipulation is a bigger problem in the US economy then most people give credit. The article at the beginning of this post gives better detail...
