I think you will see action on naked shorting come very very soon.... Fanny and Freddie are just the tip of the iceberg ....We already saw some steep declines in some financials where the long investor was stomped out of any remaining value.

If the SEC does not get a handle on this we could see a 1929 event, fueled buy the short side. Investor sentiment is at it's lowest in my memory... and if the dam bursts it is difficult to clean up the mess.

Should the SEC act pre emptively the covering of existing shorts will move the market positively and the true value of many stocks will be visible... At the present time the market is under duress because of the huge additional float that naked shorters have created.

I would bet that less than 1% of those potential Borrowed shares have the blessing of the actual holders of the stock.... your own brokerage house is your worst enemy in such an environment....JMHO