mojotronic

Short Ideas: Kick GM While It's Down

Mr. Wendling is totally correct about short manipulation of the market.
John Lee is naive and simplistic about "weak" and "strong" stocks.

Deregulated "short interest" in today's markets is probably the single most important factor creating instability, even more than the price of oil or the falling dollar. While millions of new investors pour into the markets due to the lure of cheap online trading, their attempts at fundamental or technical analysis are thwarted by the collusion of short fund managers and short editorialists, who attack entire sectors, driving down the price of good and bad companies indiscriminately.

Eventually all these new investors--the millions who are outside the Wall Street loop--will give up trying and take their money to the bond and real estate markets. If you can't sell a house, at least you can rent it.

Short-sighted, unregulated greed will be the downfall of Wall Street.