jacosa

Short Selling: The Free Speech of Wall Street

I always get [more] nervous when people blame the shorts for a price drop. Mostly, short sellers are the undertakers of the market, they help get rid of what's already dead.

Naked shorting is the same as watering a stock. It's very different from real shorting. There are plenty of honest alternatives, too (only...they don't distort the markets in favor of the people using them).

It looks to me like we had a teaser of tightening the lid on uncovered shorting, and now we're seeing restrictions on real short sales. That carries a risk of setting us up fpr a bigger collapse next time.