jksinvest

No Relationship Between Shorting and Stock Prices

Your study is biased and flawed, a simple comparison of the VIX volatility index which has tripled on average and the 3 fold increase in short interest since jun 2007 (lifting of the uptick rule) clearly reflects short selling causing an extreme increase in volatility, not to mention the bear raids destruction of the financials (BSC,LEH,AIG,FNM,FRE,C... Short Selling is the cancer of capitalism. It unfairly depresses valuations buy increasing shares for sell. This robs a company from rasing capital. E101 increase supply and you will see falling prices. Short selling (naked and manipulative most notably) is the true cause of the severity of this current crisis. The ability of companies to recapitalize has been taken away by the shorts, leaving only the TARP and taxpayers to pick up the pieces. pathetic.