Sirius was a shaky company during a booming economy. Now that the economy is drowning in pain, satellite radio is doing exactly as we said it would. Crash and burn.

All betting is closed. The news is out and Sirius XM Satellite (NASDAQ:SIRI) shareholders are losing big. Shares of the shaky-at-best company are getting closer and closer to becoming worthless. Bankruptcy is now in sight. Who could have imagined?

Oh my, shares of Sirius XM Satellite (NASDAQ:SIRI) are plunging today on news of a possible bankruptcy filing. Who would have ever been smart enough to foresee such a horrible event coming? The company only had a billion dollars in debt due over the next year. That’s nothing compared to the banks.

Uncle Sam could easily step in and erase a few of those zeroes, right?

Putting all sarcasm aside, I do not feel even the slightest bit sorry for investors wasting their money on this company. Analysts and experts have been screaming for months it was a dangerous crap shoot that would cost investors dearly, yet wildcat investors continued to aim for the fences.

It looks like they are about to strike out.

Shares of Sirius are down by about 40% (from $0.11 to $0.07) at the moment on news the company’s officials are mulling a bankruptcy filing. Whether the rumor is merely a back-handed ploy to get Charles Ergen and his EchoStar (NASDAQ:SATS) to step to the plate or if a bankruptcy truly is pending is beside the point. What matters is shareholders are about to get the rug pulled out from under them.

Short sellers are getting the news they yearned for. Only one other stock, Ford (NYSE:F) has more shares sold short. But you can bet with shares plunging ever closer to the critical zero level most sensible investors have been predicting, those shorts are going to lock in their profits and run. In fact, their buying to cover their positions is likely the only thing keeping shares from all-out devastation today.

Read the full article here  at TFN: Sirius investors: You get what you deserve