bearfund

SEC Retires 'Moron du Jour' Title

jcollins, good companies cannot be destroyed by shorts because they have adequate capital. The fact that anyone whose share price is seen as being too low to raise more capital is in danger of losing access to credit only means that these are not in fact good companies because clearly the market knows that they do in fact need more capital to survive. And since they can all borrow from the Fed at ultra-low rates, if they did have adequate capital then the only people who will lose money are the shorts because the companies could operate indefinitely even with a share price of $0.01.

Face facts, the banking system is insolvent and has been for a long time. You want to make a case for banning shorts, then acknowledge that it's an exercise in socialising risk at the expense of fairness, and make some kind of fuzzy leftist case for it. I won't buy it, but at least it will be honest. This argument is pure baloney.