When the Contract Has No Clothes

Signed, Sealed, Delivered I’m Yours
Like a fool I went and stayed too long Now I’m wondering if your love’s still strong Oo baby, here I am, Signed, sealed delivered, I’m yours Then that time I went and said goodbye Now I’m back and not ashamed to cry Oo baby, here I am, Signed, sealed delivered, I’m yours
Stevie Wonder wrote the song I quoted in a simpler time – a time when a contract was still a serious formal course of business. Those days are long gone.
My friend and fellow subscriber sent me the following question worth developing here.
Question: ‘Any solution to blatant naked short selling which has destroyed capitalism and free markets? The concept of naked short selling is insane. How can one sell legally, or in a common sense way, something he does not own?
It seems to me as long as the blatant fraud of naked short selling is allowed by the ‘regulators’ in U. S. markets, then markets will continue to be manipulated to protect the unstable, unbacked fiat Ponzi monetary system, the short term trading goals of the government and the collusive big banks. Sadly, it seems that simple.
Do you see any hope for enough people (or countries) to understand that our markets are now totally corrupt and act to help restore fair, honest, and free markets? Or is the ever expanding corruption likely to continue until the markets become so fraudulent, and so out of whack, that they just implode on their own? Please explain.”
Let’s start with this from Wikipedia:

This post was published at Silver-Coin-Investor on Feb 22, 2015.