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Insights from an AIG Bear

Take 5 forgets about CEOs of bankrupt companies who walk away with millions or congressman who retire to million dollar lobbying jobs.

At least the short seller isn't pledged to things like creating shareholder value or defending the constitution.

Take 5 cannot be so naive to think that independent hedge fund short sellers are more powerful then the trifecta of Government, Wall Street and Corporations. All three of those entities "know" the shorts are correct and are probably profiting right along with so-called short sellers.

Personally, I think naked short selling is a problem but even if they were eliminated, with ETFs you can still "short" without shares.

Like the author, I worked at one of the firms in current difficulty. Their business practices first led me to leave and then led me to enormous profits via SKF. I shorted because I felt their business model had LT problems and lo and behold it did.

I took a risk and could have been wrong, but I wasn't. I'm still a lot less rich then all the people who were wrong though.

If you want to punish short sellers then institute a five year salary look back provision for CEOs.

Enjoy the bailouts while blaming the observers.