Clearly naked shorting needs to be either banned entirely or, perhaps, regulated in such a way that the buyers realize what they're getting and who the counterp

Clearly naked shorting needs to be either banned entirely or, perhaps, regulated in such a way that the buyers realize what they're getting and who the counterparty is. The problem is that normal shorting is often maligned but a very valuable tool for correcting markets and hedging positions. There's a strong outcry against shorting from people who don't know better, and I think in response the very valid complaints against naked shorting get drowned out.