Short Selling, Bear-Raids & Naked Short Selling Explained

I'm a major proponent of the ability to short stocks when done within the constructs of regulatory oversight. There is most certainly unsavory actions of many sorts taking place in financial markets today. When trillions of dollars of capital are under little, if any, regulation, there is no doubt seamy activities will take place.

I've talked about the concept of stock pools and many unsavory activities that took place in the 1920s and correlations to today. This video by two Wharton professors also talks of this concept in today's environment, talks of historical manipulation using short strategies before the SEC was created, naked shorting and the SEC's recent announcement as it regards to primary dealers. The first few minutes are a little slow but the discussion picks up steam as the interview progresses.