soonerxii

Shorting U.S. Government Risk

That's a pretty good post. It is really kind of ignorant to blame short sellers for any of this mess. Why does no one blame the pumpers who thought that stocks should only go up? Or even the real culprit....Alan Greenspan.

Greenspan's Bubbles is a great book for understanding how we got to where we are today.


On Nov 26 10:16 AM random2348 wrote:

> apppro,
>
> If confidence returns to the stock market and the credit markets,
> then Treasuries are likely to sell off. To some degree, shorting
> Treasuries is a bet that financial markets will normalize and risk
> aversion will decline. But it is also bet that stands to gain if
> the U.S. government issues such a massive amount of debt in order
> to finance the bailouts that the new supply of Treasuries overwhelms
> the flight-to-safety demand.

SEC Bans Shorting Financials

People that think short sellers are the cause of this are idiots. Greespan pulled a move like this several years ago...also right before options expiration. I guess the Greenspan Put isn't quite dead yet.