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Naked Shorting Comes Full Circle (seekingalpha.com)
6 points by nickb on April 7, 2008 | hide | past | favorite | 1 comment



Seems to vastly over-simplify the problem down to an alleged evil-doer that wants to destroy the world. The markets are a lot more complex than that; short-selling has value as a tool to correct excessively high prices. Correct (as in "reliable" or "indicative of actual value") prices make the market move efficiently. Efficiency isn't some abstract good, it's what makes raising capital possible. It protects buyers from buying over-inflated stocks. It increases liquidity, etc.

Of course, there is some point at which any practice can be destructive, but the problem isn't short-sales; it's abusive short sales. And there's no one evil-doer.




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