Paul Killinger

Selling the Short Sellers Short: Another Sign of Trouble

Moratoria, tariffs, rationing and their related governmental activities NEVER work as a substitute for confronting economic realities. All they do is serve to distort markets. Schumpeter, Hayek and Friedman wrote extensively about this, but we only ever listen when it's too late.

Selling the Short Sellers Short: Another Sign of Trouble

By the way, I believe this RENEWAL will be VERY GOOD for our economy. Such creative destruction has always ended up making us stronger over time.

What we DESPERATELY need now, however, is a much greater supply of inexpensive ENERGY. This has been central to the worldwide economic miracle that has taken place over the past three centuries.

But we seem to be finally comprehending this economic axiom, which should make our future especially bright once more.

Selling the Short Sellers Short: Another Sign of Trouble

Flash,

You bring up a KEY point. While actually borrowing stock will slow down shorting, if that was the primary reason for this week's turnaround, then this may be only a GIANT BEAR TRAP. We'll see.

I'm not ready to give up on oil or commodities myself. I believe they are far easier to monetize than the pieces of paper they call equities in this economic climate, and, hence, have far greater intrinsic value presently.

I'm not IMAGINING the bank runs and threatened bankruptcies in the transportation sector I'm seeing. Thousands of truckers have failed due to fuel prices already. The housing market will remain a shambles for some time. These trends will continue to work their way through our economy. .