You have to laugh at the SEC’s recent witch hunt against naked short selling, says The Mogambo Guru. Naked shorting – selling stocks that you haven’t borrowed first – is already illegal. So what is it now? More illegal?

The reality is that, thanks to a law passed by Bill Clinton, brokers only have to show they made an “effort” to find the shares to borrow that they pass on to short sellers to dump on the market.

And the SEC was deliberately not making sure that this “effort” to back up a short position with borrowed shares was genuine. More from The Mogambo Guru…